Some of you may have seen the debut of Channel 4’s ‘Rich Kids Go Shopping‘, and found it as equally tacky and tedious as one would expect. The tale of the 21 year old Londoner Elijah Oyefeso will have no doubt caught the eye of every university student procrastinating their way through the mid-year assessment period.
We found ourselves immersed in the life of a University drop-out who hadn’t squandered his student loan on his umpteenth Papa John’s pizza, but had actually ‘traded’ his way towards owning a Lamborghini. Only to be disappointed because he couldn’t yet afford his own jet. If there was a quintessential example that money can’t buy class, this guy would be it:
In a bad month Elijah is making more than the average UK citizen does per annum. However a good month can see him raking in between “£70,000 – 80,000”, an amount that will surely see him jetting off to Vegas in a diamond encrusted G6 in the near future. Before you tell me that this is just a case of sour grapes, or a jealousy fuelled rant about a lifestyle I can’t ascertain; you’ll be pleased to hear that Elijah is also a bit of a philanthropist. Astonishingly enough. Elijah has the time after his busy “hour a day” trading to help get your bank balance looking less like Chelsea’s points tally this season, and more like a telephone number.
Intrigued as to how Elijah was going to transport me from the wrath Storm Desmond to a beach in St. Lucia, I took a little look into what he ‘trades’. Elijah and his newly formed DCT group – a name worthy of a group just about to drop the sickest album of 2k16 rather than topping the FTSE, are trading in Binary Options. I’m not about to go all Financial Times on you, but I will give you a simple introduction. One of the most common forms of Binary Option trading is High-Low.
Lets say a fictional company, Ridiculously-decorated Lamborghini (RDL) stock is valued at 1500 at 11am. After my analysis I predicted that after 3pm it will be higher than when I called the option, because I correctly predicted the final outcome I’ll make 70% on top of my initial investment.
If it finishes lower than when I called, I’ll lose all of my investment. If this sounds a lot to you like gambling, that’s because it pretty much is. The brokers even have an edge on you, you have to be correct 55% of the time just to breakeven.
It’s not even a form of investment, you won’t physically own any stock. Gordon Pape contributing to Forbes online states “no one, no matter how knowledgeable, can consistently predict what a stock or commodity will do within a short time frame”. This is essentially the story of the guy who watches Rain Man and suddenly thinks he can count cards, then heads to Vegas to bring down the house.
Don’t have any knowledge or experience of the stock market but want to recreate the scene from above – and also not win an oscar either (Sorry Leo)? Just when you thought I might be dashing your hopes of ridin’ dirty in your Rolls Royce blasting Big Sean, don’t sweat it. Elijah and the boys down at DCT have just the solution. If you join their ‘team’ you’ll be entered into their WhatsApp group that they use to broadcast exactly what trades to make, even boasting a 70 – 80 % success rate *cough bullshit*. You don’t even have to get out of bed! I’ve always found that if something seem like it’s too good to be true, it usually is. There must be a catch right?
That’s when I started to dig a little deeper…
The thing that strikes me about this all, is that they’re all very keen to let everyone else in on their big secret, I mean I guess it could just be an innocent noble act right? I’m sure once we’re on the inside we’ll get a better insight. After I declared my interest in joining the team, I was instructed by more than one of the DCT team to set-up a trading account with one particular broker. This broker was OptionsXO, so I gave them a little Google search:
This is horrifying as it is hilarious, the Twitter feeds of these guys consist of nothing but the announcements of new members to the team, i.e. people have just deposited a minimum of £170 into scam brokerage accounts. One of the methods Elijah uses to entice people in, aside from his social media presence resembling the life of Jordan Belfort (The basis of the Wolf of Wall Street), is to screenshot his ‘success stories’. However many of these successful students, I found to be spam accounts. In addition, after your free trial of tips has ended you will then be charged £107 a month for them, but there seems to be even more to this one.
After having agreed to become part of the team, two DCT members were extremely keen to have me screenshot the deposits I had made into the brokerage account.
This absolutely smacks of an affiliate scheme, these guys aren’t buying their luxuries with their winnings! They’re buying them with the commission they’re earning every time some unsuspecting person deposits a substantial amount of money into these scam brokers. The thing that disappoints me almost as much as the con artists themselves, is that almost all media outlets in the country were peddling this nonsense. With each article contributing further to the facade.
For those of you who saw all of the luxury watches, fancy dinners, sports cars on Channel 4 or on social media, and then question if I’m right… That’s the point! There are marketers who’s sole job it is to conjure up an image that attracts people to pour their money into: false profiles, false reviews, false social media accounts, demo trading and fake screenshots. Social media can make it extremely difficult to perceive what it is genuine and what is not.
So before you go dropping out of University at the thought of your mid-year assessments to start ‘trading’, be careful.