Warning about Binary Options

Agree completely with Jezzode…the odd’s just aren’t in one’s favor with this kind of trading.

In fact I think this video explains why binary option trading, without a strategy, isn’t worthwhile…though the math is a little involved.
[video]YouTube

I 'm currently trying bin.opt. and I made $1285 profit last week (my 1st week). I use a demo fxcm with live streaming chart with macd and fib. to pinpoint the probable direction of a currency pair with about 75% accuracy. Also, I only strike and go short or long at support and resistance levels (very important). Need to be patient and wait when the trend comes into your territory. Like everything else in life, you can win if you have a strategy.
Of course, I know the dealer plays little tricks. At times, the screen would freeze suddenly upon placing a trade, and time would work against me, and I loose that trade. Sometimes, the system would place my bid a bit lower or higher whenever he decides to.
I’m just practicing some of the lessons learned from this site. Other people may be more successful at cracking that B.O mystery

How man, how. I have lost $4000 in past 7 months. I always put my money in currencies and commodities. How you made profits? Who is your trader man?

[QUOTE=JohnCA;284281

I have also scalping experience, so I could occasionally “predict” the movements of a few assets (usually FX Pairs) correctly with the help of Technical Analysis. But remember, as my profit was a lost for the broker, soon the manipulation started. The options expired with a delay, so that an profitable trade became a losing one. Its funny how every delay made my previously profitable trade into a loser. I wrote to them and got no answer. I called, but was put on hold and didn’t get any support at all. My profits were gone due to the manipulation trades.

So I decided to withdraw the left money, which took horribly long. I already gave up, as I couldn’t get any helpful answer from the “Customer Support” (a huge joke, I think the guys sitting their have no clue about options). In the end I got my money, it wasn’t a huge amount, so I wasn’t freaking out about the long time waiting. But imagine waiting weeks to get a larger amount of money back, which you need. I was lucky that I opened my account with a small amount of money.

This is my experience with binary options. I haven’t try the other BO brokers, but please people, [B]be aware as the BO brokers are not regulated. If you are too profitable, they easily could take your profit. You can’t sue them, nobody will help you.[/B]
[/QUOTE]

I’ve just started to look into this as well (have been trading spot for about 3 years) and from what I have seen the possibility of manipulation is there from any broker who’s charts / data does not go straight to market. There are many brokers out there who trade in house and therefore have a vested interest in helping you give them money. it’s worth doing the research on the brokers who place your trades straight to market which eliminates manipulation

Mick

Dear John

I have had soo much problem with my binary options account not only did they take my trades and gave loosing signals to the winning ones but they also took money from my credit card without my permission. When I called my broker he said he hit the wrong button and the money was deducted from my account…WELL…when I tried to get my US$6,000 back they then sent me an email requesting for verification docs as they didn’t have any… so I sent everything… then they said they couldn’t read the last digits of my card. I then asked if my doc are not verified how come you can take money from me but can’t give me back money??? I think I will now try and close my account this should be fun as I’m sure they will have all kinds of excuses…anyway I had enough of their fraudulent ways and I’m going to complain big time…they have gone too far this time…are there no laws regulating them !!!

Another way I beat BO. I place up trades going long early in the day for nasdaq, and the s&p right at the bell when the market opens. They usually goes up. But, I confirm my position going up or down using linear regression curve or cci. Winning some losing some, I usually end up with at least 3 more wins (than losses) within the early hours @$100/$150 each. Then, I have fun with forex late afternoon or during the evening hours after leaving my job. I will not give you any broker’s name because I don’t want to support any bin. option dealer. There is a guy who sells a good forex software over the net. He also gives it away for free but without documentation and support. His method is to study each currency separately to learn their dynamics before you choosing which one to pair and successfully guess their direction. Some people do well in bin. options using his method. Again, I don’t want to tell any body’ name because I’m still researching the best way to beat bin. options and I’m no expert

Hi Paulanater. Well there has been no regulation but this is coming into effect and many brokers are now starting to be accredited regulation. Those based in Cyprus first and now some are starting to get FSA (UK) regulation. It sounds like you are having problems and this will come too late for you. Are you going to name and shame?

Read up on some binary options resource sites.

Best advice - the flashy ads and banners claiming it’s as easy as UP or DOWN are total BS. Trading is hard and requires research, effort, patience and some luck. Binary options are great so long as you realize it’s just black or red Roulette for the financial markets.

Hi, I have been trading binary options for quite some time now and have to disagree that it is gambling. It is trading, but you need to understand them and create a strategy that is profitable. I tend to cash out on 14 out of 20 trades on average. It has nothing to do with gambling.

I do agree that the advertisements are very misleading and makes it dangerous for new traders. They claim you don’t need to have any knowledge, just pick your pair, expiration time, amount and direction and bam…you will most likely lose. I like binary options as part of my trading and use those profits every friday to fund my forex accounts.

You need to be aware which broker you use and make sure they give you real market prices as there are plenty of bucket shop outlets who manipulate the price in their favor.

Easy money making, but it all depend on the broker you with, legitimate brokers traders make money, scam brokers traders lose money.

Dear John

My exact experience everything you say mirrored what happened to me in everyway…on my own I was a good trader and when I used this particular broker he cleaned me out even to the point of taking money from my account saying he pressed the wrong button. It took me ages to get my money back but I wrote to the options regulatory body and they refunded my stolen money…eventually…crazy…I lost around 60,000 usd never again will i use a broker or play binary options…

So you are basically saying that you gave $60,000 to someone you do not know, and on which you did not made any research to trade binary option???

I can make you prices for binary options with my super duper company if you want. Really tight prices and on request quotes. Please contact me so I can give you my account number. Entry size is $50,000.

:smiley:

What you said makes no sense. For starters, binary option are not regulated yet and are just getting there with only the valid brokers applying for regulation for obvious reasons. Nobody would have funded a binary options account with $60K as it defies the purpose. An option regulatory body who refunds your money does not exist and the simple fact that you refer to it as playing give me more reason to think you have never placed a single trade in your life and definitely not the size you want this forum to believe.

No i’m not basically saying I gave 60,000 to a broker i dont know… DAH!!! obviously you have no idea about VIP accounts at binary options…especially when you have no idea about the binary options regulator who made the B.options company refund my money also…u are obviously a small time trader and should not be involving yourself trying to think you know something about VIP option trading…!!! when you are able to trade in large amounts with binary options then you may have a more qualified say in binary option trading…until then please refrain from commenting on financial matters you have no idea about

Hi John,

I had the same thing happen with regards to Binary Options. It seems that they are not regulated, but are always “in the process” of being regulated. The one that I used had a head office in the UK but its seems that they are actually doing their business in Cypress. I too started with the least amount required to join and use a Demo. Using the Demo account worked tremendously, but once I moved to using my own money, then the trades could be “predicted” on my part, but manipulation started. There was a “delay” when the Options expired. Any email or phone call went unanswered and I did ask for my money back…takes a long time as you mentioned. I would be quite concerned if I had placed a greater amount than $1,000 into the account or even made money…don’t know if you would ever get anything back. Perhaps, as they say, they are actually “buckateers” and just place our trades into a bucket and spend our money. I did feel after a few months in Binary Options that it felt more like a Casino and have moved away from this type of investment or loss whichever category that you would like to place Binary Options.

Sharron

Hey Paulanatar,

I think TheLastBear knows more how Binary Options than most of here since he did lost his 60K or even Futim78…just like what you post here…

Then you get offensive on your response here… I am trying to weigh on the discussion. So, don’t post something that you will get upset when someone critize you and pointing out what your mistake is… Besides you get lucky that you get refunded (if it is true) but if you don’t… Then what? Just kiss that 60k goodbye…

Learn to trade on your own so when you lose, you can blame not someone else but yourself…

Ah ah, indeed, you get some points here:

  • Indeed, I have no idea about VIP accounts at binary options. Can you please explain what it is and why those are more secured than classical accounts? But in the end the fact is that you gave $60k to a company that was not reliable.
  • Indeed, I am a small time trader! I am not risking much on the markets, and would never put $60k upfront. If you think it makes you more knowledgeable, good for you!

Oh, yes, and I might have forgotten to say I am a structurer in one of the big banks (if you even know what this refers to), and that’s why I think I am more knowledgable on exotic products than you are. I personnally really don’t care if you do not believe me. But please, keep trading exotics, my salary actually depens on people like you :slight_smile:

And to come back to the main subject, I would use binary options only for long term specific views. But I would definitely prefer trading vanilla options due to their liquidity and nice things you can do with those already!!!

Please read the following and we aware about binary options…this article was put out after binary options scam detected by the SEC…please read…US Binary Clampdown – SEC Follows CFTC In Issuance of Investor Warnings and Enters Charge Against Banc De US Binary Clampdown – SEC Follows CFTC In Issuance of Investor Warnings and Enters Charge Against Banc De Binary
Jun
7
2013
Posted by Andrew Saks McLeod in Regulation
4 Comments
The United States is well renowned for its commitment to consumer protection, and the latest manifestation of this is in yesterday’s announcement by the Commodity Futures Trading Commission that it intends to pursue binary options broker Banc de Binary for two transgressions of United States law.
Subsequent to the CFTC’s decision to file suit against Banc de Binary, the regulator posted a very concise warning on its website aimed at bringing to the attention of American citizens the potential caveats of trading with off-exchange binary options firms, which is illegal in the United States.
A Further US Regulator Follows Suit
Today, the Securities and Exchange Commission (SEC), responsible for regulating and overseeing the activities of exchanges and venues in the United States followed suit, issuing a further warning to potential investors on what it considers risks associated with off-exchange binary options products, and has also posted its intention to prosecute Banc de Binary for the same transgression as cited by the CFTC.
In yesterday’s announcement, the CFTC intends to bring charges against Banc de Binary for not only offering off-exchange binary options to American customers, but also for operating as an unlicensed Futures Commission Merchant (FCM), also an offence in the United States.

Speaking on the SEC’s decision to bring this case and to raise this subject to US customers, Andrew J Ceresney, who in April this year was appointed Co-Director of the SEC’s Division of Enforcement announced today: “Just because foreign companies can more easily communicate with American investors doesn’t mean they should skirt our longstanding laws that protect investors by requiring registration of securities”.
On citing Banc de Binary, Mr Ceresney issued the following statement: “Banc de Binary contacted U.S. investors through the Internet and YouTube but completely disregarded the U.S. securities laws’ registration requirements. We will aggressively combat such conduct no matter where it originates.”
According to the SEC’s complaint against Banc de Binary filed in federal court in Nevada, the company began offering and selling binary options to U.S. investors in 2010. Banc de Binary induced investors to create accounts with the company, deposit money into those accounts, and then purchase binary options whose underlying assets include stock and stock indices. Banc de Binary’s solicitation of U.S. investors has been quite successful and attracted some customers with very modest means.
For example, one investor had a monthly income of $300 and a net worth of less than $25,000, and another customer was encouraged to deposit additional funds into his Banc de Binary trading account even after he informed the Banc de Binary representative that he was unemployed with less than $1,000 in his checking account.
The SEC’s complaint seeks disgorgement plus prejudgment interest, financial penalties, and preliminary and permanent injunctions against Banc de Binary among other relief. The CFTC today announced a parallel action against Banc de Binary. The SEC’s investigation was conducted by Leslie A. Hakala and C. Dabney O’Riordan of the Los Angeles Regional Office. The SEC’s litigation will be led by John W. Berry and Ms. Hakala. The SEC appreciates the assistance of the CFTC in this matter.
The Investor Alert on binary options was jointly issued by the SEC’s Office of Investor Education and Advocacy and the CFTC’s Office of Consumer Outreach. The bulletin discusses in detail the potential risks of investing in binary options, and warns investors that they may not have the full safeguards of the federal securities and commodities laws if they purchase unregistered binary options that are not subject to the oversight of U.S. regulators.
“Investors should be aware of the potential for fraud in this area as well as of the reality that they can lose their entire investment,” said Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy. “We strongly encourage investors to check the background of brokers and advisers and trading platforms before making a decision to invest. If investors can’t obtain simple background information such as whether the financial professional is registered with the SEC or FINRA, then they should be extremely wary.”
In the United States, it is perfectly legal to trade binary options, as long as they are exchange based, as in the case of the North American Derivatives Exchange (NADEX), which provides a trading environment in which trades are executed via an exchange rather than clients ‘betting’ against the binary options firm itself.
Consumer protection was spearheaded in North America by Ralph Nader’s 1965 book “Unsafe at Any Speed”. The US regulators appear to view these particular products as unsafe at any price.
Forex Magnates intends to report on this matter in detail to provide the industry’s perspective.
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TAGS: binary options, cfd, CFTC, financial, Forex, fraud, markets, north america, regulations, regulator, swap dealer, usa

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The way binary options work for VIP’s you gradually put in money starting at USD10,000 and the options platform give bonus equal to what you put in then when funds are low we are asked to top up with our money…so gradually we top up get equal bonus then when we loose our money they ask for you to top up again and again and a bonus will also be given everytime…so the loosing of money is not apparent cause we can still see bonus money in our account…but we never allowed to use bonus and only when our money is lost we are asked once again to top up with our money…never using the bonus so we have an illusion we still have money cause bonus never touched…only at end do we realise the money in our account is all bonus and our money is gone…and bonus cannot be withdrawn…very shady…if broker fraud-steer finished …for us