Want binaries banned in Europe? Provide evidence NOW!

[Nandisko]

All trading is gambling then. You buy low, sell high or visa versa so you are betting a market price is above or below (excluding hedging) a certain price at a certain point in time. In order to be successful you need to have some sort of "model" that tells you when to enter and exit, the P&L and risk prior to placing a trade (bet). For a binary this model is more simple than in other types of trading (gambling) product due to the smaller number of variables and greater number of constants. Therefore I do believe a binary option is a way for non-institutional traders (gamblers) to make a profit from financial markets. in 99.9% of cases, Individuals don't have the capital of institutional investors to participate in markets in order to make a living from it. That pushes them into leverage which I think is really dangerous and increases variables on your model considerably leading to dangerous risk / financial management.

All my comments in all my posts on this subject are in the context of a fair level playing field regulated by a reputable regulator and you are very right that in Europe there is no such thing or likely to be.

The trouble is that in addition to scam brokers, honest brokers will not be allowed to work either. Nor to the traders who honestly make a living with binary options.

 

[obmonarca]

Let's make a few things clear about binary options.

1. The whole concept was invented by the online gambling industry to make gambling look like trading.

The basic concept of a binary option is a bet of up or down. In general, if you lose, you lose the entire amount of your wager. If you win, your "prize" is somewhere between 60 and 90% of your wager.

Now look at the time frames being encouraged by the brokers. They push 5 minute, 1 minute, and even shorter trades. This turns your "trade" into a coin toss or betting red or black at the roulette table, since even in a good trend, there's no way to reliably predict if price will be higher or lower in 5 minutes or less.

How many of you would like to bet $10 per coin toss, knowing that if you win, you'll get $7 or $8 and if you lose, you'll lose $10?

Real world casinos have offered to let people bet red or black at the roulette since the 1700's. There are some differences. In a casino version of roulette, the house advantage is only the green 0 slots. Other than that, the payout is equal to the wager for a red or black wager. This is a far more narrow advantage than binary "brokers" give themselves.

In real forex trading, if you catch a good trend, you can trail your stop and let the trade run as long as you like or until the trend reverses and hits your stoploss.

In real options trading, your loss can be fixed, but if a contract is "in the money", your profits are based on how far price has moved in your favor.

2. There is no liquidity provider in binary options.

There's no central bank or even large bank which will take the other side of a fixed payout wager, just like real world casinos can't get a bank to take the other side of bets at the roulette table.

EVERY binary options company is a market maker/bucket shop. Your losses are their gain, Your wins are their losses.

3. Bucketshops are profitable, but not profitable enough for these greedy binary scammers.

A roulette wheel is a mainstay at licensed and regulated casinos because it will make profits in the long run in spite of the occasional lucky gambler who cashes out while ahead. With the far greater advantage binary brokers have, they should be happy to rake in people's losses and pay out the few who make a profit and are ready to withdraw.

Instead, many (most? all?) of the major binary platforms are rigged. This lets the broker easily manipulate price or expiration to increase the client's chance of losing.

Add in the "expert account managers" who claim to be able to make profits for clients. If you walked into a casino, knowing that your winnings can hurt the casino's bottom line, would you trust an "expert gambling manager" who would tell you where, when, and how much to bet to be "sure to make you a big profit"?

The simple fact is that if a casino employee did have a way to help clients easily win big and did show this to clients, the employee would be fired to save the casino from bankruptcy.

4.. Look at the fraud rate for binary brokers vs forex brokers.

Just go to the FPA reviews and take a look. Yes, there are forex brokers with ratings averaging less than 2 stars or that are labelled as scams, but the percent of binary brokers with extremely low ratings or listed as SCAM is much higher.


It's already well established that Cysec regulation didn't even slow down most binary scammers from looting their client's bank accounts, retirement plans, and even provided advice on getting mortgages and credit card limit increases. Now that Cysec seems to have stopped handing out new licenses to steal to binary companies and Israel is chasing binary operations out of the country, more and more of these scammers are moving to countries with little or no regulation.

If you have an overwhelming urge to "trade" this way, I recommend you go to a licensed casino and spend an evening betting red or black at the roulette table. No one will call you and pressure you to deposit more. No one will misuse your credit card or ID documents. Best of all, you can take your chips and cash them in with no problem any time you like.

Binaries need to be banned. They were invented to bypass regulations. Even an honest binary broker has an automatic conflict of interest and is offering clients a bad deal. If they are banned, then there's no need to waste time and money hoping that you might have gotten lucky and found an honest one.

Hi, i would like to make some comments on your exposition.

1) the whole concept of especulation could be asimilable to gambling, but the fact is that if you study and work a lot you can be profitable in forex, cfds and binary options. that is not possible in the roulet or other casino games.

2) That problem appears also in many forex brokers that claims to be ecn but they also manipulates prizes and act as market makers. In both cases (forex and binaries) is an issue to solve with regulations and control, not by banning the activity.

3) You are pointing to some problems that should be regulated and controlled, again prohibition is not a solution. This week whe knew about a fine to HSBC and other 2 big banks regarding futures manipulations, do you consider that also future markets should be banned or authorities should control more and more?

4) I´m not so sure if the fraud rate is so different if we speak about regulated brokers. There are more negative reviews about binary brokers, but most of them are not regulated at all, they are out of the law, and, worst of all, they will not dissapear if binary options are banned. The prohibition will only make regulated brokers close, but those illegal and scamers will remain open and scamming.

Thanks for your final recomendation but i don´t like casinos, made some cruisses during past hollidays, and the only part of the boat i never visited were the casinos, because i find them boring. Binary options are not a game for me and they became my way of life, sustaining my family. Gamblers uses binaries, but forex too, and leverage for them is a very dangerous weapon, do you think so that leverage should be limited or prohibited? Or the solution is to have some serious polices to help gamblers to get out of that hell? Would you also ban football, races, basketball and other sports because there are many gamblers wasting money there and there were some big frauds also in sports that were relationed with gambling?

 

[IQ Option]

The problem is that the law always has a backdoor! And companies always find one. In case of an issue, noone will be able to help you. Neither Ombudsmen, nor the regulator. You've just lost some money and that's all.
With BO, your result depends on a miliseconds sometimes and it is an instrument that is classified as "betting" in some countries. I you want to bet, just go to a regulated and licensed casino.
SpotOption was just caught in manipulation and casinos cannot manipulate the outcome, it is all based on the chance which in the long term is in casino's favour, this is simple math.They don't need to manipulate anything.

I used to be successul trader as well until Iqoption started to manipulate the platorm by sending new and new upgrades. They were executing options with 30 sec. latency at different prices which was a breach in the contract, changing the outcome of winning options to "loss". And after that, they simply quote a term in their contract that they are not responsible for ANYTHING!
The idea of BO companies is to limit the number of winning clients and increase the number of losing ones. This is the only way that they get profits. There's no other way.
The above-mentioned broker is regulated but even the law cannot cope with such scam schemes. If you cannot control something, you just ban it!
To you - get a proper daily job, betting on markets, on sport results etc. cannot be classified as a job!
One day you will become a devil for your broker and they will start scamming you!

Hello!
Thank you for expressing your opinion! We appreciate your active position!
Let us tell you that IQ Option doesn't manipulate the graphics as they are formed every second according to the quotes provided by Leverate, Bitstamp, Bitfinex and NASDAQ Basic and can be checked here at any moment: https://iqoption.com/en/historical-financial-quotes
The delay in order execution appears due to the slow Internet connection. Please, kindly mind that for the best performance of our platform, you should have a stable and high-speed Internet connection.

Thank you for your time!
IQ Option

 

[Pharaoh]

I wouldn't ban casinos or sports or even sports betting. What I would ban is gambling masquerading as investing. No licensed casino will ever suggest taking out a mortgage or using your retirement fund so you can increase your wagers. The entire concept of binary as investing is nothing but a lie.

Yes, some forex traders gamble, but the concepts of "buy low, sell high" and "profits proportional to price moves" make the basic rules of forex the same as other financial markets. Most major regulators have already limited leverage in forex. The more gambling addicted traders are likely to go to unregulated or under-regulated brokers offering 500:1, 1000:1 or more. At least is is still possible to trade instead of gamble in those brokers. Binaries are nothing but wagering on red or black with terrible payouts. Mathematically, a binary house will win big in the long run even without cheating. Like a regulated casino, if someone develops a successful system to extract sure profits, sooner or later even a hypothetically honest binary broker will have to adjust its rules to stay in business.

From what I can see, there significantly are less than a dozen honest binary brokers in the world vs. a thousand or more which are nothing but money sucking scams where they laugh at clients while handing out financial ruin. It won't do you the slightest bit of good to make a million dollars "trading" binaries if you can't withdraw your profits. In binaries, even if you can withdraw today that doesn't mean you'll be able to withdraw tomorrow. Most are buried behind multiple shell companies. The true owners can make them disappear with a few mouse clicks.

When an entire industry is based on a lie and over 99% of the companies in it are actively robbing their clients, shutting it down is better than spending more time trying to fix something which was broken from the start. If the tiny number of possibly honesty binary companies want to stay in business, they can always join Nadex under US regulation. Personally, I wouldn't be surprised to see Nadex dump binaries since the very name binary has become so tainted that many binary brokers now try to avoid using it.

Binaries as investment is as much of a lie as roulette as an investment. Canada isn't the sort of country to resort to prohibition except in the most extreme cases. Israel is banning an industry which provides huge numbers of jobs because they know their whole binary industry is corrupt to its very core.

I've been watching binaries since they first appeared. They took the worst behaviors of the worst forex scam forex brokers and refined those to a model designed to extract every cent a client has, then every cent the client can borrow. All the claims of "easy trading", "limited risk", "insured trades", "expert traders", and more were heaped on top to mislead people into putting that first $250 into the account and then to keep pumping in more and more cash.

Go read Scam Alerts and read about binaries. Go read the reviews an see the clients begging for help. Look at the first 2 pages here in Forex Articles and read the threads about binary brokers. If that's not enough to get the message across, spend some time reading the articles exposing binary crimes at the Times of Israel. Do all of that and then tell me about how a quick and easy regulatory fix can solve all the problems before the binary machine chews up even more victims.

 

[Pharaoh]

The risk is limited. I limit the risk, is it so difficult to understand this?

Keep your lotsize reasonable, use a stoploss, and close everything before the weekend or large news events. That will greatly limit your risk trading forex, vanilla options, stocks, etc.

At least my forex brokers don't hound me to place large wagers - or offer to make "risk free" trades for me.

I do agree with you about HSBC.

 

[obmonarca]

I wouldn't ban casinos or sports or even sports betting. What I would ban is gambling masquerading as investing. No licensed casino will ever suggest taking out a mortgage or using your retirement fund so you can increase your wagers. The entire concept of binary as investing is nothing but a lie.

Yes, some forex traders gamble, but the concepts of "buy low, sell high" and "profits proportional to price moves" make the basic rules of forex the same as other financial markets. Most major regulators have already limited leverage in forex. The more gambling addicted traders are likely to go to unregulated or under-regulated brokers offering 500:1, 1000:1 or more. At least is is still possible to trade instead of gamble in those brokers. Binaries are nothing but wagering on red or black with terrible payouts. Mathematically, a binary house will win big in the long run even without cheating. Like a regulated casino, if someone develops a successful system to extract sure profits, sooner or later even a hypothetically honest binary broker will have to adjust its rules to stay in business.

From what I can see, there significantly are less than a dozen honest binary brokers in the world vs. a thousand or more which are nothing but money sucking scams where they laugh at clients while handing out financial ruin. It won't do you the slightest bit of good to make a million dollars "trading" binaries if you can't withdraw your profits. In binaries, even if you can withdraw today that doesn't mean you'll be able to withdraw tomorrow. Most are buried behind multiple shell companies. The true owners can make them disappear with a few mouse clicks.

When an entire industry is based on a lie and over 99% of the companies in it are actively robbing their clients, shutting it down is better than spending more time trying to fix something which was broken from the start. If the tiny number of possibly honesty binary companies want to stay in business, they can always join Nadex under US regulation. Personally, I wouldn't be surprised to see Nadex dump binaries since the very name binary has become so tainted that many binary brokers now try to avoid using it.

Binaries as investment is as much of a lie as roulette as an investment. Canada isn't the sort of country to resort to prohibition except in the most extreme cases. Israel is banning an industry which provides huge numbers of jobs because they know their whole binary industry is corrupt to its very core.

I've been watching binaries since they first appeared. They took the worst behaviors of the worst forex scam forex brokers and refined those to a model designed to extract every cent a client has, then every cent the client can borrow. All the claims of "easy trading", "limited risk", "insured trades", "expert traders", and more were heaped on top to mislead people into putting that first $250 into the account and then to keep pumping in more and more cash.

Go read Scam Alerts and read about binaries. Go read the reviews an see the clients begging for help. Look at the first 2 pages here in Forex Articles and read the threads about binary brokers. If that's not enough to get the message across, spend some time reading the articles exposing binary crimes at the Times of Israel. Do all of that and then tell me about how a quick and easy regulatory fix can solve all the problems before the binary machine chews up even more victims.

Binary trading is not just a red/back roulet, if you study price action and check stats you can get a winner strategy. If prohibition goes ahead all those scammer brokers will move to forex and cfds, for sure they will find legal holes to continue scamming, and all binary gambling traders will move also to forex (joining the gamblers that are already in, as gamblers are everywhere), so forex will be the new number 1 public enemy, and will probably be next target to ban. I hope that people get this and act defending the hole activity instead of saving their backs finding and pointing the "demon of finances", because that will only give you (and me as i trade forex too) just a few months before they come back targeting forex. This is like cancer, we can try to get the cancer out, or kill the patient, but you can be sure that in a few weeks we will have another patient.... and steps against cancer are normally useful for more patients.

 

[oscarra]

https://www.timesofisrael.com/forme...s-israeli-law-enforcement-lax-reforms-needed/

Don’t see how regulators can regulate crime

 

[Nandisko]

Keep your lotsize reasonable, use a stoploss, and close everything before the weekend or large news events. That will greatly limit your risk trading forex, vanilla options, stocks, etc.

At least my forex brokers don't hound me to place large wagers - or offer to make "risk free" trades for me.

I do agree with you about HSBC.

No one is chasing me. And when I operate binary options I do not have to worry about weekends, or so many things, nor do I have to worry about whether the Swiss bank or any other ruin thousands of people intervening the currency. When I trade binary options, I do a trade of x quantity, period. By the way, I earn my life honestly and the brokers pay me promptly without any problem. It seems that you are very motivated so that I can not earn an honest living. Thank you.

 

[Nandisko]

Keep your lotsize reasonable, use a stoploss, and close everything before the weekend or large news events. That will greatly limit your risk trading forex, vanilla options, stocks, etc.

At least my forex brokers don't hound me to place large wagers - or offer to make "risk free" trades for me.

I do agree with you about HSBC.

You says "I do agree with you abotu HSBC". I encourage you to persecute HSBC with the same strength that you are pursuing the income with which I have maintained my family for two years.

 

[scared-victim]

Want binaries banned in Europe?
Provide evidence NOW!​

Have you been scammed by a binary options broker? Would you like to see the European Securities and Markets Authority ban binary options? If so, you need to provide evidence now.


What's going on

EMSA, the European Securities and Markets Authority is considering restricting or completely banning binary options. They want input by February 5th, 2018. I don't know if they mean it must be received before February 5th or before February 5th, so please try to get your submission submitted by February 4th. If you miss the deadline, there's nothing the FPA can do about it.

You may also post your information below if you want to share it here, but that does not submit the information to EMSA. You must submit your own information to EMSA yourself.

The call for evidence covers binaries, CFDS, and even crypto trading. The second 2 subjects are important, but the FPA considers the possibility of getting binaries banned to be the most important part. If you have input about CFDs or cryptocurrency trading, go ahead and submit it.


Your information CAN help get binaries banned

People often ask why they should bother to complain, since the regulators don't do anything. In this case, the regulator is asking for evidence. This is your chance to share your experiences and know that the regulators will be looking at it.

Right now, there are binary companies submitting their own comments, claiming that binaries are a wonderful and fair opportunity for traders to make money. What happens if victims of binary scams say nothing and the brokers are the only ones who comment? Little or nothing. What happens if thousands of victims come forward, tell their stories and provide evidence? If this happens, the best binary brokers can hope for is very tight regulations. The more likely option is that binary options gets banned in Europe. This would be a huge step towards ending binary options worldwide.

My message to everyone who was scammed by any binary options company is simple. If you want to help put an end to binary options, follow the link and submit your evidence.


Submitting your evidence to EMSA

Here's what the submission form looks like...

View attachment 35996

Let me try to clarify a few points on the form.

Activity: I suggest selecting "Individual" from the drop down list.

Institution in this case would be the binary company which caused the problem. To further make it plain that you were not an employee, I suggest writing "Client of" followed by the name of the binary broker. If you have been scammed by more than one binary broker, fill out a form for each one.

Your response and other evidence must be uploaded as files. As it says, you can only upload pdf, txt, doc, docx, xls, xlsx, ppt, pptx, pps, ppsx, odt, ods, or odp files. Zip files are not an option. Images are important, but cannot be included as separate files. Include your images in a document or power point presentation.

You get a choice about whether or not your submission will be publicly published on EMSA's website. If you want the world to see what the broker did, you can leave the box checked. If you prefer not to have it publicly visible, check the box. If you do plan for your submission to be public, edit out anything you don't want published from your files before submitting them. Your credit card numbers, bank details, and other personal info should be edited out first.

This is going to regulators who are familiar with complaints against binary options companies. Saying things like "they are the biggest scammers in the world" isn't going to help. Saying "Here is the evidence of how they would not process my withdrawal" is helpful, if you include the evidence.


What kind of evidence should be included?

Start with the name of the company. The date you opened an account. How much you initially deposited. Did the "account manager" trade for you or tell you to make trades? Were you pressured into making more deposits? Were your withdrawals blocked? If you have screenshots or emails to support any of this, include those.

Do you have evidence of price manipulation? Something like 2 hedged trades on the same item with the same expiration date both losing? Price suddenly moving to cause your trade to lose while another price feed doesn't show any sign of movement? If you have anything like this, tell about it and include images if possible.

If you chose to have EMSA publish your submission, remember to edit out any private information before submitting the documents.


Need more information?

If you wish to read all the details, CLICK HERE to access the whole document on EMSA's website.


Ready to give your evidence?

Are you ready to provide information? CLICK HERE to go to the response from on EMSA's website.



I'd like to thank FPA member retribution2u for bringing this to the FPA's attention.