Banc De Binary-The leader of trading! Founded in 2009, Banc De Binary is a Cypriot enterprise and is considered the leader in binary options trading. It is one of the simplest and claims to be a profitable trading system. The major assets for trading under this system include gold, oil, stocks, indices, foreign exchange and similar commodities. Banc De Binary customers form a bet directly against a certain firm and not via any regulated exchange. The price of the options is fixed by the associate Spot Option Exchange, which also offers 30-second, 60-second and many other such trading options.
It offers a demo account to the customers so that they get familiar with the trading business before getting into the real market investment. It also promises a bonus on the initial deposit and re-deposit bonuses also.
What are Binary Options? The term “Binary Options” used in finance is based on the outcome of a yes/no proposition. This yes/no proposition are indicative of whether the price of a particular asset that has been underlying in the binary option will go above or below a specific amount. The binary option exercises automatically viz. the investor or the option holder has no choice of selling or purchasing the underlying asset. When the option expires, the holder receives either a pre-determined amount of money or the value of the underlying asset or nothing at all. Therefore, they are also called as all-or nothing options or fixed return options.
There are two most important types’ binary options. They are the cash-or-nothing option or asset or nothing option. In the cash-or nothing types of binary options, the pre-determined payout will be paid as cash. In the asset-or nothing type of binary option, the value of the asset which has been placed as security for the purchase will be paid at the time of maturity.
Trading platform for Binary Options The SEC (Stock Exchange Commission) and the CFTC (Commodity Futures Trading Commission) Office of Consumer Outreach are the main regulators of the binary option platforms in the United States. They have an oversight of the listed exchanges or the designated contract market. Most of the trading for binary options are internet-based platforms, which necessarily do not always comply with the applicable US regulatory requirements. The number of such websites offering Internet-based trading platforms has sky-rocketed in the recent years. This has proportionately increased the number of complaints regarding fraud and false promotion schemes.
Fraudulent Binary option trading Basically, the frauds related to binary option trading can be categorized into five types.
Refusal to reimburse credit amount: This is the most common type of alleged fraud in the binary option trading. Since the investor is first needed to bank-in a specified amount of cash/or an asset, it is locked in by the trading company, usually via brokers and at the time of reimbursement of the funds, the account is either blocked/canceled, or the amount is not credited to their accounts.
Identity theft: Usually, the investors are requested to produce any proof of identity such as credit-card details or license details or other such data for unspecified requirements. There is always a possibility for such personal data to be misused. Hence, it is better to avoid such requests for photocopies of license, credit-card details to avoid any fraud by the trading brokers.
Software manipulation: This is another common type of alleged fraud involving manipulation of software to. The internet-based trading platforms manipulate the software to alter the prices and payoffs of the binary options and generate unexpected trading losses for the investor.
Altered Terms and Conditions: It is necessary for the investors to read every clause in the Terms and Conditions of the contract and be vigilant enough to not allow any possible subsequent changes, especially regarding the payoffs.
Credible regulatory bodies: You should ensure that the broker works for a regulatory trading company that is legally designated for contract trading of binary options. If the broker is not registered with a professional trading company and lists down trading options with non-credible regulatory bodies, then there is every possibility that it might be a scam.
In 2013, the Cyprus Securities and Exchange Commission (CySEC) had declared that all the brokers involved in the binary options trading and operations within the Cyprus jurisdiction should apply for a CIF license. This ensures that all the registered brokers are legally responsible to keep a check on the safety of the invested funds. There are just three designated contractors offering binary options in the United States. They are the Chicago Mercantile Exchange, Inc.; Cantor Exchange LP; and the North American Derivatives Exchange, Inc. All other trading companies offering binary options trading are more likely to be illegal.
Is It a Scam? Banc de Binary has been having regulatory issues with the United States authorities for quite a while. But that’s history now and it shares good relation with the United States and with the European regulations. Though it cannot be actually considered a scam, the traders do have issues with this trading system.
The major complaint always has been that the money of the investors has been lost in the hands of the account manager. So, it is highly recommended to stay away from account managers.
The other complaint is that it is the most aggressive brokerage, rushing traders into investing huge sums of money under a VIP account. This makes things highly uncomfortable and financially tight for common man, who has minimalist savings. Once the investment is done, complaints have been issued that the managers do not revert back as expected and the gains are predominantly negative. Though this is a common issue for all brokerages, it is much more prevalent in Banc de Binary options.
Banc de Binary now uses the SpotOption software platform, which is user-friendly. This is one the longest running and one of the most trusted and reliable trade brokerages in the trading market. These kinds of platforms are usually considered as a gambling or a gaming platform since there is little or no knowledge about how a stock market can trade. The cumulative payout is negative a lot of times.