Categoría: Scams

CySEC removes Cedar Finance’s license for good

Por el 22-01-2015 Categoria: Scams

Binary Option Scams –  Cedar Finance

The financial security commission of Cyprus has finally take care of the case of Cedar Finance, one of the binary options brokers that has been offering traders the ability to speculate in financial markets through binary options. The press release was published in Greek in the official website of the financial regulator the Mediterranean island of Cyprus.

Cedar FinanceThere has been already a first statement against Cedar Finance, this took place on December 19, 2013, and there was a second iteration just a few weeks later, on February 21, 2014. This announcement follows a meeting of the CySEC that took place on June 16 of 2014 where the final withdrawal of the CIF 213/13 license took place, this was when the broker was still allowed legally to offer investment services to traders within Europe. Therefore, the T.B.S.F. Best Strategy Finance Ltd society, which owns the brand Cedar Finance and www.cedarfinance.com website, is no longer a broker officially regulated and authorized in the European Union by the CySEC.

The withdrawal of the license to the broker has been applied because of the numerous offenses committed by this broker, whose practices are contrary to the rules of the CySEC “Investment Services and Activities and Regulated Markets Law”. An example of this can be seen in the last infringement of Cedar Finance confirmed by the authorities; which was an offense against section 26 (5) of the regulations of the CySEC, then it was proposed that services to European traders were to be suspended temporarily on December 19, 2013. However and despite the warning of local financial authorities, the broker continued its activities.

Before the latest statement, Cedar Finance had  a three month period to regularize their status with the correspondent authorities in their investment activities through binary options. It seems that the broker has ignored the demands of the financial authorities and continued to offer their services without the CySEC license or any other license from another financial regulator. Therefore, Cedar Finance did not respect the law and posed a significant risk to traders and investors. For these reasons, both the CySEC and financial advisors discourage traders who use the services offered by Cedar Finance and any other broker that is not directed by a regulated and authorized entity.

Unlike Cedar Finance, which no longer has the CySEC license, or any right to offer legal binary options trading in Europe, there are numerous binary options brokers that are regulated and have licenses, permits and other authorizations from different financial institutions that reward their quality of investment services. These regulated binary options brokers do not present any risk to traders. Customers tend to have the protection of banks and financial authorities, so that if any inconsistency occurs, any money invested has certain security and might be recovered with help of the regulative entities.

Among these regulated brokers which offer binary options, it is recommended to choose brokers that belong to the large companies and are known as regulated industry trading brokers. There are twelve European regulators licenses, including licensing from the CySEC (Cyprus / EU), CNMV (Comisión Nacional del Mercado de Valores – Spain), AMF (Autorité des Marchés Financiers – Banco de France), CONSOB (Commissione Nazionale per le Società e la Borsa – Italy) or FCA (Financial Conduct Authority – UK).

Why did iOption declare bankruptcy?

Por el 22-01-2015 Categoria: Scams

Binary Option Scams – Fraudulent brokers: iOption

iOption has gone bankrupt. Employees have been reporting massive firings, but there has not been much talk coming from official spokesmen in the area. The news were also confirmed by well-established sources within the binary options industry.

Ioption-platformThe news has taken by surprise traders and binary option analysts, which had a favorable perspective regarding iOption operations. iOption has been reviewed several times, this is because the agency was one of the first brokers to offer binary options for traders to buy or sell. iOption closing its doors meant for market analysts and financial advisers to revise their policies and trading strategies to avoid investing in a broker that might declare bankruptcy at some point.

It is hard to think any evident reasons for a large-name broker to fall in this manner. The first thing that analyst discovered was that for about a month ago, iOption clients were not able to place any sort of trades within the platform. It turns out that in order to comply with new EU regulations, iOption asked its trading platform provider, SpotOption to create some changes to its platform so that will satisfy regulatory requirements. Apparently, the necessary software updates took too long, which caused many problems for existing and new customers. It is a fundamental principle that businesses should never close their doors to clients which are willing to spend money on the company.

In short, the service break which took place for over a month meant the beginning of a constant loss of income for iOption. Second rule every marketer must know is that it must be able to allow a high level of liquidity. Unfortunately for iOption, Netpay and Liberty Reserve, they are all facing bankruptcy. These e-wallet companies are holding thousands of dollars of capital in the accounts iOption had in its platform. And if that was not enough to iOption, several sources have stated that several financial partners of iOption are starting to get upset about the situation of their relation. The newest partner, who has invested six figures in the company, has said that after signing the contract that they have realized the company was not giving off the right impression and that they were presented with false information about the situation of the company. As a result, it was decided to freeze their investments and to prevent the company from using this money. The only alternative left for iOption to manage was to sell their goods. The broker has started negotiations with Bbinary regarding a possible purchase, but it is a cloudy scenario for iOption because of previous commitments from Bbinary in the US. No other binary options broker has had real interest in taking over this catastrophic broker.

It is clear that the demise of Liberty Reserve affected iOption more than it could be handled, in addition to every new problem which drove the company into the decision to close its doors, this can happen in any type business, however this in no way justifies the lack of communication with its customers and lack of payment to its affiliates. It is a fact that iOption will not return in the near future.

CySEC issues warning against TraderXP

Por el 22-01-2015 Categoria: Scams

Binary Option Scams – Warning against TraderXP

One of the largest regulators of financial markets, CySEC (Cyprus Securities and Exchange Commission), based on the island of Cyprus, issued a statement on its website to warn traders of binary options broker TraderXP. The official document of the regulator regarding TraderXP notes that the broker does not have any authorization from the CySEC for their financial activity and, therefore, they can’t pose as a banking service or investment services company in a legal manner, which is what the broker has been managing to let its customers to believe.

broker-traderxpThe license coming off a regulator is a true permission, it is vital for a binary options broker. The regulations drafted by the CySEC dictate all binary options brokers wishing to offer their services in the Cypriot and European markets to obtain this authorization request to the regulator. A binary options broker offering investment services in the financial markets but without a license to do so would be committing an offense and that is why TraderXP is being criticized for, regarding that the company does not have any authorization to carry on business brokerage.

Coming from the company’s information available online, it seems that TraderXP has its headquarters in London (UK), however, it is still obvious that the broker lacks any regulation or license coming from any market regulator local financial (FCA) whether local or international. No European regulatory authority has granted permission to TraderXP, so this partnership is logically banned on European soil and in theory they have no right to proclaim any sort of appeal.

The CySEC regulator entity became the first organization of European regulations to consider binary options as a true financial product, as CFD (Forex), stocks or indexes, or any product where traders look forward to speculate through their brokers. The CySEC will not doubt to punish and to impose significant sanctions on the unlawful binary options brokers. The industry has still to suffer the consequences of not providing a trustworthy environment; binary options has been stigmatized and considered as a game of chance, a true product of similar bets just like online casinos or sports books. Now that the binary option is recognized as a true investment product, the CySEC will try to save its  image, by penalizing unlawful brokers and rewarding the best binary options brokers.

To all this we add that the warning CySEC has been sent to other regulators in the European Union. The Maltese regulator (LGA), which, moreover, regulates another broker called OneTwoTrade, immediately took the same steps of CySEC, also warning the traders which utilize TraderXP’s services. Recently, the CySEC license granted to broker 24Option demonstrates official recognition of the CySEC to the broker. It is also a guarantee of safety, because traders can work with regulated brokers as they are further protected by the regulator.

Other regulated binary options brokers have been licensed by the CySEC and some are regulated in France, having obtained a license from the Authority for Financial Markets, the AMF and the ACP, French Authority Prudential Control, they are allowed to trade within certain European boundaries.For example, there are TopOption and OptionWeb, which are both regulated brokers. It is better to opt for this type of brokers, who have demonstrated their trustworthiness, and stay away from unregulated brokers, such as TraderXP.

Banc de Binary sued for operating illegally

Por el 22-01-2015 Categoria: Scams

Binary Option Scams – Operating illegally by Banc de Binary

The binary options platform Banc de Binary has received a demand from the US securities regulators accusing them of providing services to American residents without compulsory licensing.

Banc de Binary was the only binary options broker left to ensure that it had every regulation and license required to operate inside the United States.

BancDeBinaryOfficial information regarding marketing, and operation procedures reveal that they were settled on Wall Street, New York, in the Trump Tower. Both the Commodities Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) filed civil lawsuits in the Nevada federal court which accuses Banc de Binary of a violation of the ban in the US about binary options trading, and for operating without registration from mid-2011 to March 2013.

In this period, Banc de Binary operated an online trading site that allowed US customers to operate binary options, which is prohibited by the CFTC. According to this entity financial regulation, Banc de Binary used this site to request the opening and closing operations on assets like oil, silver, sugar, coffee, corn, currencies and other commodities illegally.

Oren Laurent, President of Banc de Binary, issued an official statement confirming the cease of operations of the binary options platform in the US market, following the measures taken by the United States Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), both industry regulators controlled by the State. In its official statement, Laurent said that these entities “have claimed that Banc De Binary is not allowed to offer their binary products to US residents without being registered with the corresponding agencies”. It was confirmed that Banc De Binary discontinued all operations with US residents, so it will not accept more clients in the country and it won’t allow existing customers from the USA to perform operations on the platform.

Laurent stated that at this point, they intend to work on the refunds regarding accounts of existing customers. For customers who have met the requirements and have agreed to accept bonds, the platform will refund the total remaining balance on their accounts. Otherwise, Banc De Binary will subtract from the trader’s balance the amount of the bonds accepted, and there will be a refund corresponding to any remaining positive amount. The broker will process the refund via the same payment method used to make deposits. Depending on the payment method, the transfer should not take more than a few days.

Federal agencies are on the watch for financial penalties and any sort of lock that manages to prohibit Banc de Binary to establish any negotiation with US customers. A few days ago another binary options platform based in Cyprus, 24option has closed its doors to customers in the United States.

Many sources indicate that after the recent lawsuit against Banc De Binary, and charges brought against them by the CFTC, 24option has been fearing similar actions; so they have decided to close their doors and cease to accept any more American customers

Customers are wondering what this decision means for 24option and what impact will it have on their accounts and balances. As it has been stated, all previously created accounts that still have funds on the platform can continue to use the system and withdraw their money.

Eztrader loses regulation because of scam?

Por el 22-01-2015 Categoria: Scams

Binary Options – EZTrader loses regulation

EZTrader is one of the largest and best-known binary options brokers in the world. They have had significant success by offering their services for the European market. But, its reliability is in question. The decision to invest money with this company is important, and traders should always search for detailed information on the pros and cons of working with this agency.

eztrader-2EZTrader has been Operating since 2008 and is regarded as one of the very first companies that allow traders to buy and sell online binary options. Their trading platform has been coined as one of the most popular around due to how easy it is to operate by newcomers. But still, EZTrader is still under judgment by potential traders because binary option broker scams are a common issue to consider. The larger part of the concerns that get raised and are focused on the reliability of binary options brokers like EZTrader because responsibility relies solely on the trader, and there is little chance to get any money back if the company happens to be a scam.

So how EZTrader compares to all other successful companies available? Actually, it does quite well. Besides being a financial institution fully regulated and supervised in the European Union, EZTrader has recently hosted the legendary Argentine soccer player Hernan Crespo his team of operators. The site offers EZTrader Education Center of right to help you learn trading strategies and become familiar with the binary options trading platform. Customers also get a generous bonus, and besides all that, they can benefit from the higher payments market that go about 95% per initial investment.

But what distinguishes EZTrader from to other agents are its personal advisers. When investing with EZTrader, traders will have access to highly professional investment specialists who are available to help their customers to learn how to make the best decisions to increase profitability in their operations. The company has built a great reputation by hiring these financial analysts, which is probably the main reason why traders can safely choose EZTrader as the conduit to successful experience in binary option trading.

There’s another concern which many customers consider when evaluating binary option brokers such as EZTrader. Since they are located in Cyprus, the factual lack of standard financial regulations that verify the operations of the broker creates some doubt in potential customers. Traders should remember that the binary options market is an Over-The-Counter (OTC) market. Because there is a certain difficulty of lawmaking regarding global financial market with such a high liquidity, there are no such thing as defined laws that manage to impose rules and possibility of appeal. Each sovereign country usually has their very own legislation regarding the functioning of broker companies operating within their jurisdiction.

Even though EZTrader is one of the oldest online binary option brokers, it it hasn’t been able to maintain a solid reputation, which is common for this type of enterprise. The broker has had several bad feedback about received payout ratios which may have been poor and of inconsistent quantity; this adds up to several faults in their customer support form of service. Been Win Global Markets (WGM) Services Ltd bought the company in 2011, so EZTrader has been able to show a significant improvement in their reputation and overall services. The new management managed to set the payout ratio in correspondence to the international standards. To most people, this now indicates that the new face of EZTrader has taken enough care of their faults to be able to please their clients’ complaints so they managed to be one of the oldest brokers in the market.

How to spot a fraudulent broker

Por el 12-01-2015 Categoria: Scams

There are a lot of binary option brokers which are set to steal money from their customers through an array of methods; but there are certain guidelines which can be used to spot a fraudulent broker which has a market platform based on a scam.

How to spot a fraudulent broker

Traders must consider that if they get scammed through a fraudulent business, it will be very difficult to recover their investment, as these companies hide behind fake IP’s, tax havens, fraudulent credit cards and other methods of hiding important data, so it is recommended need to follow these general safety measures around the event of getting scammed.

All there is to do if the trader gets scammed is to warn other users on the Internet that the chosen company is a fraud, though it will be nearly impossible to recover the lost money, traders should help other users avoid having more people fall into these sort of fraud or scams. Traders can try to complain and place a legal claim too, but in most cases this will not help, because these binary option fraudulent companies are hidden away so that they are a complicated network to track. Traders ought to be wary of companies offering fixed monthly or yearly profit, these companies are clearly a scam, also traders must very alert if the company is in a tax haven country, usually this is due to fraudulent operations, and never fail to check if the company in question has regulation and reliable licensing.

How to spot a fraudulent broker

Unfortunately, investments over the Internet are not as safe as customers would like them to be. Specifically in the trading of binary options, traders should be cautious, because if we do not take the necessary precautions can become victims of fraud.

The need to understand the underlying asset of the option the trader wants to obtain is very important. Perhaps some do not consider it a fact of vital importance but if the trader has any hope to have positive results with its investments, he or she will need to know how the financial asset is sold. Also it will be just as important to know certain factors that can have influence in a certain moment.

If the trader wishes to invest its capital in currency, he or she must know which one is currently trading on the rise and which one is below it to determine what pair they should buy and which to sell. To stay informed of economic news is critical to investment success. This seems like common sense but it is vital and must not be forgotten.

The choice of broker is crucial for success in binary option negotiations. Traders can not allow themselves to cheated by fraudulent binary option brokers where they ensure that customers will get significant benefits from their investment with little effort. Remember that there is no such thing in this market and that money does not work itself into our accounts. With experience and good decisions profitability will eventually come and produce more money.

It is also advisable to register a trading platform that offers demo accounts to invest without making any deposit. This way the trader gets to learn more about the market and above all, earn some experience that will allow them to have more confidence to invest real money.

¿Are binary options a scam?

Por el 12-01-2015 Categoria: Scams

Binary Option – Scams

Binary option scams or frauds are more common on the Internet than it may seem. Traders will have to be very careful so they do not fall into a fraud or scam of any of the fraudulent companies illegally operating binary options. On the Internet users can find many testimonials from people who have been scammed by some of these disreputable companies that are dedicated to deceive their customers.

¿are binary options a scam?

After opening an account at any broker, it is possible to recognize whether the company in question is really honest, because there are an important number of irregular companies which have not received any sort of approval from an international security agency. Traders must bear in mind that there is always the risk that a certain company is a fraud or scam, that is why it is recommended to follow certain guidelines, so it is possible to be able to identify whether the option broker which the trader operates is actually regulated and therefore, totally reliable, or the company possesses a questionable reputation.

The reason for the scam in binary options, is simply to fraudulently steal all the money funds invested by its users, so the plaintiff or victim runs out of money and there is really little the trader can do legally to try to recover it in any sort of way. There are several methods used by these companies to steal money from their clients or victims, one is cheating on the trader’s predictions bag, so users do wrong investments and lose all their money, this method can potentially mean an important loss of money because the trader not being aware of this, and he or she will continue depositing and losing more and more money. The other main method to scam through binary options is to take the money directly deposited from the victim, so it’s impossible to recover it.

¿are binary options a scam?

The injured clearly these methods of fraud in options is the customer, user or victim of the platform. The user runs out of money and there is little to no possibility of making a successful claim for recovery. To avoid falling into a binary option scam or fraud the trader must follow certain security guidelines or main points before opening an account with a company.

First step is that traders should not trust any company that yields a fixed monthly or yearly profit, this is clearly a sign that the company is fraudulent, binary options can result in winning or losing options, as traders should know, which is why companies that happen to have some sort of fixed income should not be trusted. After that, traders must review the company of choice to see if it has been regulated by the relevant regulatory bodies If it isn’t directly regulated traders should distrust and never invest their money in that broker.

Traders should avoid companies that are located in tax havens, although at first they can pay small amounts of money, when the trader chooses to withdraw a larger amount they leave their customers and affiliates hanging.