Breaking: US Binary Options Affiliates Charged by CFTC for $16m Scheme
5 stars based on
Today more financial regulators than ever before are looking into minimising the presence of the toxic financial companies in the jurisdictions. Recently Belgium has put a ban on all of the possible Over-the-Counter productsthis has resulted in some losses for the retail FX and binary options brokers. Now we can clearly see that even more regulators are following a similar path, yet the ways to mitigate frauds are wiser.
A healthy share of both regulated and unregulated binary options brokers is actually located in Israel. The main reason for that is the technical availability, most of the technology providers in this sector are coming from Israel.
Recently authorities of Luxembourg have stated that they are going to fight all of the unregulated binary options brokers. Next to this, a leading search engine in China — Baidu, has removed all of the possible advertisements of binary options in its search feeds and display networks. The US has been fighting illegal binary options brokers for years already, and until now it has fined such brokers for more than million US dollars.
However, CFTC has allowed, so far, two binary brokers to enter its market — Cantor Exchange read a review here and Nadex read a review here. Binary options are considered to be derivative financial instruments. However, honestly speaking, it does not have much to do with the financial industry.
Essentially, it is a type of betting, but instead of horses or numbers, you are betting on the financial instruments. And who are you betting against? The house, a binary options broker. Hence, the conflict of interests is quite clear. Still, there are two main issues. First of all, most of the unregulated brokers are incorporated in offshore territories. As a result, it is next to impossible to issue legal claims.
It gives some space for these brokers to make price manipulation and get away with it. Even if a trader achieves profit, there is nothing that holds a broker back from avoiding to pay out the earnings.
It has never been easier to setup a binary brokerage. Hence, the main point of the governments should not be to ban the whole industry, but to remove the toxic players from it. The best way to achieve it might be by following the US path, selecting a very limited amount of legitimate brokers, requiring them to deposit a vast amount of adequacy capital and overseeing these brokers in a detailed manner.
Stay up to date with the financial markets everywhere you go. Home - Top Stories - Binary Options: A global war is declared. A global war A healthy share of both regulated and unregulated binary options brokers is actually located in Israel.
Why is it needed? The whole industry is toxic It has never been easier to setup a binary brokerage. Comments 0 comment s Click here to cancel reply.
Get the most recent news at your inbox Stay up to date with the financial markets everywhere you go. Sign up for updates. View ICO See whitepaper. Is it possible that Bitcoin BTC is still substantially overvalued? Ethereum Analysis - USD defended but Is Groestlcoin GRS really the 'all-in-one' cryptocurrency?
Bitcoin Forecast - USD is still the target. Get the most recent news at your inbox.