Sports Arbitrage Scams

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					How To Become A Successful Sports Arbitrage Trader

            This is a brief guide on the Sports Arbitrage scams & how to avoid them

The sports arbitrage industry currently
has a couple of serious scams being
operated by various individuals. In many
cases, they are related and they are
fronted by exceptional salespeople with
no conscience. If you deal with them and
hand over your money, you will lose it..

Click here to see a current list of known
scams – read this before committing
your funds anywhere

With this in mind, let’s have a look at the
types of scam being run so that you will
be able to recognise them instantly if they
come your way.

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How To Become A Successful Sports Arbitrage Trader

These outfits take advantage of the fact that there are many people who are interested in
earning profits from spots arbitrage trading but who do not have the time or inclination
to do the trading themselves. The HYIP offers to take your money and invest it in their
sports arbitrage fund, often promising gains of 3%-10% per day.

Without exception, these operations are scams and you will lose the money you give

I’ll explain why.

1. Bookmaker stake limits

All bookmakers impose stake limits on their customers. This restricts the amount that
any trader can place on an arbitrage trade, with the average bet size limited to the range
£200 – £1000. This means that sports arbitrage trading funds cannot scale up as they

2. Daily returns of 3%+ are not possible.

It’s possible to make 3% on a single trades. However, it’s not possible to place the fund’s
entire capital on any single trade so it is very likely that some of the capital will be
unused. Even if they manage to place all of the money on a series of trades, they cannot
do this every single day: it takes time for bets to settle, winnings to be paid and funds to
be transferred across accounts for rebalancing.

3. Logical use of capital

If the owners of the trading fund are genuinely able to produce consistent daily returns of
3% or more, then why do they want your money? It would surely make better business
sense for them to borrow capital from a bank at less than 10% per annum and then keep
the daily 3%+ profits for themselves.

How To Become A Successful Sports Arbitrage Trader

There have been a number of such schemes in the past and they have always followed
the same path: they market their services, start taking money from people and have
some of their operatives post on websites about the profits they have been paid.

This creates more interest in the fund and they take even more money from people. Early
‘investors’ of small amounts may now increase their ‘investment’ as the fund grows in
credibility. Some early investors may even receive some profits.

Then the fund disappears, and with it, everyone’s money.

There will be no way for you to contact them and no regulator will be able to provide you
with any assistance. These funds are also known as Ponzi Scams

There has been such a proliferation of these scams recently that the   Australian
Competition & Consumer Commission has released a warning which, unfortunately,
seems to attack sports arbitrage itself as well as the types of scam described here.

How To Become A Successful Sports Arbitrage Trader

There are quite a few companies now selling sports arbitrage software as a product to be
purchased for a one-off large fee. They use high-pressure sales tactics to railroad the
buyer into making a rash decision. They invariably hype the profit-potential of sports
arbitrage and invoke the ‘miracle of compounding’ to inflate your expectations.

The problems with this approach are that once you have paid the large fee you have no
control over the situation and no way of getting your money back:

    1     You may decide that sports arbitrage is not for you, after trying it out for a
          month or two. If you were paying a subscription service then you would just cancel
          the subscription, having paid for what you used. But since you have paid a large
          upfront fee, your only recourse is to ask for a refund and you can be all but certain
          that this will not be forthcoming.

    2     You may find that the software you have purchased is not as good as you
          thought it would be. As your trading experience grows so will your ability to
          discern high-quality sports arbitrage trading software from that which is low-
          quality. Unfortunately, if you have paid a large upfront fee for your software then
          you are stuck with it.

    The software stops working after a
     couple of months.   The fact is that
     sports arbitrage software requires a lot
     of resources to maintain and there are
     only a few companies in this space
     that are capable of providing a 

     consistent service.

    Anytime a bookmaker changes the design
    of their site, sports arbitrage software has
    to be updated.

How To Become A Successful Sports Arbitrage Trader

This happens extremely frequently and when you consider just how many bookmakers
there are, you can begin to appreciate that the maintenance of sports arbitrage software
is an ongoing process for any company focussed on providing a quality service.

Companies which take in subscriptions have a compelling reason to maintain their
services and innovate their offerings – if they do not then they can expect their
customers to stop paying. However, a company which has taken you money upfront no
longer has any incentive to spend any further resources on maintaining their product.

The companies operating scams such as this are easy to recognise. Most notably, they
tend to charge €8000 or more for their software.

This should raise alarm bells immediately, especially when you consider the much lower
subscription fees of proven professional-level products such as the   Sports Arbitrage
World TraderZone

How To Become A Successful Sports Arbitrage Trader


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Description: The sports arbitrage industry currently has a couple of serious scams being operated by various individuals. In many cases, they are related and they are fronted by exceptional salespeople with no conscience. If you deal with them and hand over your money, you will lose it...
About I spent most of the 1990’s as a foreign exchange dealer and futures trader in the City of London. Leaving the City in 1997 to focus on new opportunities unfolding as the Internet became mainstream, I discovered a rapidly growing range of risk free arbitrage trading opportunities created in the online sports-betting markets. After a year of research, during which I ran a successful private sports-arbitrage trading fund, in 1998 I created the world’s first and foremost sports-arbitrage trading software, ArbAlarm. Today, I focus my attention on helping new traders through my articles, books, seminars and software innovations on my website