binary option scams - Discover the remarkable truth about binary options scam and learn the tricks that some unregulated binary options brokers are using to take away your cashbinary option scams | Discover the remarkable truth about binary options scam and learn the tricks that some unregulated binary options brokers are using to take away your cash
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.
There 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).
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.
The 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.
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.
The 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.
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.
Official 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 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 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.
Traders should be aware of the reasons to invest in binary options. Investing in binary options is the best alternative for those who want to make quick and smart money, if they’re willing to learn the tricks of the trade. One of the biggest advantages of investing in binary options is that traders do not need a vast financial knowledge to work.
The main reason to invest in binary options is that the system is easily accessible. Most binary options platforms are really friendly and simple to understand, so any person (over 18) can use it. It is also very easy to access a broker’s platform, in fact, all that is needed is a computer connected to the Internet. The operation of binary options is very simple, in short, traders should only decide the direction of the financial asset price change. That is, the trader must decide whether the asset’s price will rise or fall. Investing in binary options is ideal for everyone. Another big advantage of binary options is that traders can make most important decisions, and therefore maintain full control over their operations: the freedom resides in choosing a broker of personal preference, the preferred trading tool or method, the timeout that the trader may consider relevant, among other decisions.
Unlike other online investment systems, traders that manage to earn money with binary options will have a 100% claim on the cash; binary options brokers do not charge commissions or fees. Unless the trader is operating in a fraudulent broker, rest can be assured that cheating is a very slight possibility. The most recognized binary options platforms have regulations and quality certifications that guarantee privacy and security in each of their transactions.
To invest in binary options only need a computer (although it can also be though an iPhone or similar smartphone). This will allow traders to work from home and be their own boss, and therefore save time and money on travel and operative expenses. Unlike Forex, on binary options traders can control teir operations, they can know in advance the potential risks and gains, and also decide whether the operation will be profitable or not.
There’s a lot of information available thanks to technological advances; traders now can access all financial and economic news involving financial assets. This way, investors will be informed and updated on market developments and therefore will be able to do more accurate and reliable predictions.
High profitability, since binary options offer very high returns. If the operation finishes successfully, the trader can earn up to 80% on its initial investment. Even most brokers offer a fixed return for all operations that end without success of around 15% of the initial investment. Also, there’s no need to buy a physical asset, since traders only negotiate on price. There will be no problem regarding price fluctuations, but they will still be the main source of concern and opportunity for traders; one of the main reasons binary options are profitable is that it’s a speculative market where traders try to “play” and predict whether the price will raise or drop.
Although binary options and gambling can be quite similar, they are not the same. Within the world of binary options, the basic logic of a bet is represented in the sense that if it hits, you win, and otherwise the money is lost; but it is not a mere bet, the loss can come from using an unreliable or faulty strategy. This is where binary options and gambling differ: Binary options have a proven methodology which allows traders to generate profits while using the correct approach. In a bid, the range of probability of success is 50% and losing is 50%, in contrast to investing in binary options, where the probability of winning can raise to 80% or more.
The best way to increase the chances of success for each operation within the world of binary operations versus gambling is through the use of binary strategies; they basically consist of techniques that comprehend the use of correct analysis of charts and trends, the core of all methods regarding binary options forecasts. Within the binary world there are various strategies, each more different than the last, yet they all have the same purpose, to help traders win more money.
When traders decide to invest in binary options, they expect to win from the start. The most common binary option bet is that an asset will rise in value, or lower its value.
The first betting scenario would be “out of money”. This means that the option raises its price if the trader bet on the drop, or the value has dropped while betting on the raise, and so on. Traders lose their investment when they fail to predict the fluctuation, unless their broker provides some sort of refund mechanism, which is not often the case.
When traders have made a good analysis, their predictions were correct and consequentially have known the direction an asset would take at the end of a given period, then the trade is “in the money”. Average earnings will usually range between seventy and eighty percent of the money invested.
Investing in binary options offers a number of opportunities to other types of investment firms so it makes them much more likely to get good benefits for its traders, while functioning as a quick and simple investing alternative.
To start trading or gamblingbinary options, there are simple rules and concepts to understand, especially compared to other markets. While traders should know a little of the stock market and learn how to interpret a graph, everything is quite simple and it’s possible to take an intuitive approach at things, so it is possible to start making investments almost immediately. By investing in binary options time-lines are short, which seek to collect benefits quickly, without any sort of long waits. Traders decide what amount to invest in each asset class, so it is always known how much money is at stake and also exactly how much money can be earned.
Investing in binary options is basically the fastest and safest way to increase exponentially your money. Traders can see their initial investment grow on a daily basis if there’s enough determination to do so. Without long waits, traders can earn money in no time. By spending a few hours a week, you can round off your monthly income and make ends meet comfortably. But there will always be a certain possibility of risk, since it is a highly volatile and liquid market.
Investors who are just starting to play the binary options market quite often fail because they lack experience in this type of transaction. Because of this, it is necessary to test out in the field what has been learned, and then to gain more experience in negotiating financial assets, the best a trader can do is to open a demo account to practice his or her strategies. Without a doubt, this is one of the better actions to take when starting to trade binary options.
If we have the opportunity to gain experience in a safe manner, but in a real scenario, traders may check if the platform chosen for their market operations offers the possibility of creating a new demo account. It really is one of the most useful tools especially for less experienced investors, who can create a good strategy just by trial and error
The possibility of opening a demo account is something that not every online broker offers its users. The demo account is a great opportunity to learn how these trading platforms online work without worries, at your own pace.
Demo accounts also give traders the opportunity to try without obligation different binary option brokers, so it is much easier to know them thoroughly and then decide which broker suits the trader’s long and short-term goals. While it is true that on the Internet, traders can find detailed reviews of different brokers, it is best to try each broker on its own.
Creating a demo account does not have any additional cost and can give the trader the push he or she needs to dive into the world of binary options without taking unnecessary risks. These types of accounts are useful to practice binary operations and to improve any method or strategy, which in turn will make it possible to achieve better results and safer investments when playing the market in a serious manner. As traders practice with a demo account, they get more experience for their operations in real accounts in the future. The free demo account allows them to operate within the binary options market with real data but with by using virtual money, so it is possible to get acquainted with market trends, indicators and other signals that are useful for traders to understand.
Operating the market without the experience would be the most frustrating experience, especially in the first moments of trade; because it is practically impossible to learn overnight how and why the binary options market operates like it does (or any market). Professional traders are learning new techniques and strategies to use in the future; it is a process that involves constant education and a willingness to submit to all the useful information that is out there.
Thanks to the Internet, traders can gather all the necessary information easily. To analyze the market and then try a demo account so traders make their forecasts safely, is the best way to see if their trades are going in the right direction and if they will get benefits in the investments contained in their strategy.
Oil is a favorite among binary options investors; it is one of the main financial assets and is usually included in diversified investment portfolios that earn higher rates of return. It is essential that traders use a strategy to invest in oil with binary options to ensure maximum profit on their investment options.
Oil, like other commodities, is an asset that currently suffers large increases and movements due to economic crises affecting several countries which directly impact the financial market. Gold along with oil are the most volatile assets, and it is easy to appreciate when traditional assets such as currencies experience a period of instability or decay. Because of this, these assets are called safe havens and are very safe to invest while playing binary options.
Almost every binary options platforms include oil as a main asset, with times of expiration of mainly few minutes or hours. This reinforces the idea that it is essential to have a strategy for investing in oil with binary options and ensure profitability. To increase the chances of successfully investing in oil with binary options, traders should conduct a thorough and accurate analysis of the financial market in order to detect clear trends.
The basic form of binary options Call / Put is still used as a strategy to invest in oil based on global financial announcements. The main objective of the investor is to study the market so it can identify trends and invest according to the resulting analysis. To begin, the trader shall apply the values of fundamental analysis and review the economic calendar to find when reports are published which on their own are directly related to the fluctuation of oil prices, such as inventory of oil, the manufacturing index or currency swings; these are all published within certain periods of time, just like other financial events that affect their value under the principle of asset correlation.
In the case of oil, it is important for example that the trader is attentive to the economy of Canada, one of the largest producers of oil in the whole world and, secondly, the United States, one of the largest consumers of raw material. For example, if the price of Canadian currency is falling in conjunction with the USD, so will the value of oil. For this reason it is so important to constantly study the global financial market and analyze how different factors affect the assets with which we are operating.
After analyzing the financial report and economic events calendar, every binary options investor must interpret its value in order to recognize the direction of the trend and invest properly. If a “-” accompanies the published amount, it refers to a negative value; it will also appear in red on the economic calendar. The binary options investor must interpret this value as a sign of an uptrend, since after this point, it is likely that the value will start to rise again. Therefore, the Call / Put strategy to invest in oil through binary options, the investor must wait a few minutes until the value begins to rise, then open a Call position. If the trader is faced with a positive value of oil when the economic calendar is presented, it is interpreted as a downtrend, so after a few minutes the value should start to drop.
There are many brokers and therefore, many traders; so newcomers must consider that they have a lot of brokers at their disposal. But if a trader arbitrarily picks a broker, a big risk is being take. In this case, it is highly possible to choose an unreliable broker which doesn’t have a good relationship with its traders or any sort of guarantee in terms of security of payment and deposit. It is recommended to get acquainted with whichever are the most trusted brokers at the time.
Some of the most trusted brokers are 24Option, OptionBit and OptionFair. They require a minimum deposit of $250, $200 and $250 respectively. Also, all three of them offer demo accounts for newcomers.
If a trader selects one of the brokers recommended above there’s little room for mistake. These brokers have been established for years and have repeatedly shown to be of quality regarding their traders. They can be considered some of the most trustworthy brokers at the time; but just like everything on the binary options market, variables are very volatile and a broker might declare bankruptcy overnight. This is why traders must be aware of any sort of suspicious movement made by their broker. The already-mentioned most trusted brokers have no interest in deceiving customers whatsoever.
It is important to be able to maintain a streak of successful transactions while trading binary options. And that is not possible if a broker offers an awfully bad payment rate. Imagine that the trader receives only 50% return of the trade in their account, and 0% if the option is out of the money. Would it be possible to succeed in trading in this manner in the long run? It is quite obvious that this would not be the case. Traders have to be successful in 70% of their trades just to get even. If, on the other hand, a fair payment of 85% and 0%, things would be much easier if trading is done correctly, also it could generate high payment rates.
Overall, what’s important is that the broker has a good position when compared with other brokers. In this market, traders should not compare, for example, a NASDAQ stock with an EUR / USD stock, it would be just like comparing dogs and cats. If traders want to know how good of a pay the broker is offering, then they should compare EUR / USD on a broker with EUR / USD in another broker.
Customer service is also becoming increasingly important to determine whether a broker is trustworthy or not. In this area, the quality parameters stand in whichever language is available, speed of service and potential helpfulness provided by the customer service employee. There are employees who can solve problems within minutes and there are those who postpone the issue until the customer gets tired. It can also happen that the trader gets a certain amount of emails for several days stating that the problem is being processed, and that the client will be contacted when there’s some progress on the issue.