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Banc de Binary(bbinary.com) Issue

Discussion in 'Scam Alerts' started by prema, Sep 22, 2011.

  1. Pharaoh

    Pharaoh Colonel

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    Overall, I'm getting a bad feeling not just about Banc de Binary, but also about the whole binary options concept.
     
  2. BigT1

    BigT1 Sergeant Major

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    Binary Options are nothing more than gambling, with a Bucket Shop as your counterparty.
    For those that may not understand the terms "gambling" or "Bucket Shop":
    A gambler is an modern-day Forex Trader, and a Bucket Shop is an old time Barber Shop that has a backroom lightly shaded by a curtain, where the local BookMaker sat and took bets from local patrons of the shop; in-between schtupping the Barber's daughters in exchange for his keeping his life.
    .
    As a mere "Customer", the results you obtained depended largely on two things:
    1 - Your willingness to provide up-front cash to the bookie when placing your bets; and
    2 - Your ability to outrun a bullet or two, should you have been unfortunate enough to have actually won.
    .
    There is an excellent classic book on the subject that all wanna-be traders should read:
    Reminiscences of a Stock Operator by Edwin LeFevre.
    .
    Written a hundred years ago, you can find it at your local library, or available on Amazon for a mere $0.25 + Shipping.
    http://www.amazon.com/Reminiscences-Stock-Operator-Edwin-Lefevre/dp/0471059706
    .
    This book changed my life 30 years ago. In one astounding evening, it will teach you more than you will ever need to know specifically about Binary Options, and trading in general.
    I personally guarantee you that once you start reading it, you will not be able to put this book down; even if it is the only book you have read in 20 years.
    Anthony Ingrassia, CTA
     
    #52 BigT1, Aug 6, 2012
    Last edited: Aug 25, 2012
  3. Kingrex

    Kingrex Corporal

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    After a few years experience with binary options I will say that much has changed since I began.
    The only time now I would consider taking a binary trade is during some big announcement and hope to go in the direction of the big boys for a few pennies profit...other than that there is no interest.
     
  4. guyver

    guyver Recruit

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    I believe something fishy is going on with the data being manipulated if your in a winning trade. In my demo account I was clearly up by 40 pips trading the 60 second, when 20 seconds before expiration my winning option is all of a sudden a tie when price clearly was no where near my entry and the trade didn't even expire yet. I 've had tons of real demo accounts with futures brokers and forex and have never experianced anything of this nature in regards to trading. I think there should be more regulation and transperancy, until then I will not be trading live with this broker. It is not advisable.
     
  5. Boko Maru

    Boko Maru Sergeant

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    Seems all of these guys are just white labels of this binary options platform provider: SpotOption - Binary Options Platform Provider

    Have you noticed that all of these binary options brokers have platforms that all look identical? That's because they ARE identical; they are all just using this Spot Options platform and their "turn key" setup, which is provided for entrepreneurs who want to try and cash in on the gold rush of being a binary options "broker."

    The way some of the guys call themselves "investment banks" is a joke. It's all just an elaborate scheme for the "brokers" (I use even that term loosely) to make money from eager newbies hoping to strike it rich.

    For what it's worth...:)
     
  6. Pharaoh

    Pharaoh Colonel

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    Maybe I should call up Spot Option and establish Banc de Pharaoh and Pharaoh de Binary. :p
     
  7. BigT1

    BigT1 Sergeant Major

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    In my experience, I have found only two firms who try to make a legitimate market in spot forex options:
    Saxobank offers plain vanilla options that folow EU rules. These can be valuable when traded in the same account as spot forex with them, but unavailable to USA citizens.
    IKON, you're on your own.
    All should recognize these are thin markets and are not meant for amateur investors.
    They should only be employed by knowledgeable traders with deep experience in options trading.
    Caveat Emptor.
    Anthony Ingrassia, CTA
     
  8. Pharaoh

    Pharaoh Colonel

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    Regarding Saxo, I think you are referring to real options traded on an exchange, right?

    These other "binary options" brokers don't seem to be linked to an exchange.
     
  9. BigT1

    BigT1 Sergeant Major

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    Pharaoh,
    Just like Spot Forex itself, "Options on Spot Forex" are traded between banks and other liquidity providers through the same facilitators like Integral or Currenex that intermediate the spot market.
    There is no "Forex Exchange". There are "Exchange Traded Forex Futures Contracts" and "Options on Forex Futures" available in the USA at the Chicago Mercantile Exchange. The CME has recently introduced Micro contracts more suitable for small investors.
    SaxoBank provides market making and liquidity partner access on both Plain Vanilla and Binary Options, but their services are no longer available to retail US citizens due to Dodd-Frank.
    .
    Many unregulated outlaw firms operating as bucket shops in jurisdictions that have no laws regarding this kind of business make their own market in Binarys where you are forced to trade against the company that holds your money, and have no recourse to their pricing, availability, or executions; nor even to withdrawals in many cases (as this thread has clearly demonstrated).
    Work with them at your own risk.
    .
    Here are some links for those who wish to learn more:
    FX Options
    E-micro Forex Futures: Three NEW Currency Pairs
    .
    Anthony Ingrassia, CTA
    NFA ID#: 0278164
     
    #59 BigT1, Sep 10, 2012
    Last edited: Sep 10, 2012
  10. BigT1

    BigT1 Sergeant Major

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    It has recently come to my attention that there IS indeed one firm that has created an NFA Registered Derivatives Exchange in the USA, which provides a market in Binary Options and Bull Spreads. The North American Derivative Exchange (NADEX) NFA ID: 0340344, is subject to regulatory oversight by the CFTC! They facilitate the offering and sale of these derivative instruments from their liquidity provider MMR, with the purpose of servicing the retail public.
    This firm was founded and is based in Chicago. It was later bought out by the British firm IG Group, which makes a similar market in the EU. This may be one of the safer firms to consider for this kind of limited risk, limited outcome derivative trading. This is not an endorsement, more research is needed on this; just an attempt to update my previous erroneous statement and make others aware of what I have recently learned. Stay tuned.
    .
    Here are links to their About Us page and their parent:
    About Nadex | Exchange Trading
    http://www.iggroup.com/
    .
    Anthony Ingrassia, CTA
    NFA ID#: 0278164
     
    #60 BigT1, Sep 12, 2012
    Last edited: Sep 12, 2012
    Darrell Martin likes this.

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