Americanbinaryoptions. com. American Binary Options. A new type of Online Trading with a growth rate of more than 360% per year, which is 30% per month expansion of industry. Within the last 2 years, Binary Options online trading has been ranked #1 in monthly growth as number of traders increase by more than 30% per month. Binary Options are a relatively new type of trading online appealing to both newbies and experienced traders alike. This is truly an opportunity for one of the greatest businesses one could start now! Your Brokerage business trading Binary Options, Stocks, Futures, Indices, Currencies, and Commodities. Let clients know they can trade anything from Gold, Silver, Oil and others to Currency Pairs such as EURUSD, AUDJPY, GDPCAC, to stock futures like Amazon, Google, Facebook the Dow, Nasdaq or S&P futures, and how easy your company and this trading platform makes it simple for the customer. American Binary Options. The growth of the Binary Options industry in recent years has been outstanding. It appears that the down-to-earth, simplistic, and straightforward nature of Binary Options is a huge draw for less tech - and economic-savvy individuals, who are looking to make decent returns from the financial markets. However, as it is in other forms of trading, far more people are doing poorly in Binary Options trading than individuals who are doing well. Often, the difference between the successful traders, the traders hanging in the balance, and the chronic losers boil down to finding a working recipe for success and hanging on to it. How do you work out your own recipe for success in Binary Options? We believe the tips below would help a great deal.
Best Binary Options Trading Tips. It is not enough to know what Binary Options is, or to know how to execute a trade. As a trader, you have to understand the market in-depth. This would require you to read a lot of resources and hear what different authorities have to say. Boring! Yea, it arguably is. But it is very important, and you are going to be reaping rewards from doing this years after. This one is a no-brainer, but many a trader would stop short of becoming successful because of a wrong choice of broker. A broker is an important member of your team: you choose the wrong broker, and you will have to work several times as hard to be just as successful as those choose a reliable broker. For a beginner trader, choosing a broker that offers demo account trading is getting it right from the start. For a trader looking to switch brokers, it makes sense to have a rather long checklist to weed out the shaft from the wheat. Still, a golden advice is to go with proven and established brokers than wannabes still trying to make a mark. If you are a beginner, you have done some reading and now understand a wee bit about Binary Options. You then go on to choose a broker.
Please, refrain from the temptation of continuing on to make a trade you are simply going to gamble away your money. Why? Because you have not learnt the trade. For traders already trading, but skipped learning how to trade, you should press the pause button on your trades, and go back to learn the ropes. When you learn the trade is when you go in-depth to the different types of Binary Options, how they are traded, what makes them different, the amount of risk involved with each, what factors are you to look out for when trading a specific options type et cetera. It is at this stage that you know which form of Binary Options trading piques your interest, the assets you will be trading, and the amount of risk you are comfortable with handling. A method refers to an organized process of trading. It is what differentiates pro trading from gambling in the markets. First, you have to research the market, assets, trading times, how and what events affect an asset, and the form(s) of Binary Options to trade. Then you find a suitable method, which you will always use to know which trades to place, and which positions you shouldn’t take.
That is basically what a good method does, so that you make more wins than losses. I should add wisely to that subheading. Assets behave different in the market, and are only traded in the money with a limited number of strategies. Do not take the high road on this one do research on forums and other online sources to get more information on assets. You have to ascertain if an asset is a fit for your method, if it might be (to be sure after thorough testing and practice), or if you would be better off without it (say, there is not enough price change on a currency pair). Practice is a universally agreed way to get better at anything. With Binary Options, you can use demo accounts for this purpose. New traders could practice and test strategies, get a feel of the broker’s trading platform, et cetera. Seasoned traders could run more tests, make adjustments to their strategies and see how it performs in the markets, et cetera. Both are like Siamese twins. They are so important that even if a trader trades without a method but trades with solid risk and money management strategies, it will take them longer to lose out completely, than if they didn’t use the strategies. Now, imagine how well they would help if you are implementing them after already have your trading sorted out? Another important statement to note is, do not just have the management strategies, STICK to them, ALWAYS (especially when starting out). The hard truth is that you would lose some trades and you would win some trades there is no way around that.
Why? Well you are not a god, are you? What you can do, however, is to increase the percentage of winning trades, which will automatically reduce the number of losing trades. Strive for consistency, rather than try to get rich quick. All companies go through the books at least annually, to see how well they perform, and what they can do in the future to better their position. The basic idea of reviewing also has a place in Binary Options. You can use a trade blotter to find out necessary details of previous trades. Maintaining a trading journal is also a good idea, as it helps with the review process. Binary Options trading is getting more interesting by the day, with the launch of functional tools and features all geared towards making the best out of your trading. These come in different forms, and may not be available on all brokers. It is important to use these features after testing that they would do well with your existing method. These tools include Rollover, Double Up, Close Now, Social Trading (Replicators), and many more. Binary Options - a pure and simple way to trade or simply a SCAM? An unbiased guide to binary options - revealing scams and facts you need to now.
What are Binary Options? Binary Options For Dummies: A Binary Option is an option whose payoff is either a fixed amount or zero. For example, there could be a binary option that pays $200 if a hurricane hits Miami before a specified date and zero otherwise. Also called a digital option. Binary options differ from more conventional options in significant ways. A binary option is a type of options contract in which the payout will depend entirely on the outcome of a yesno proposition. The yesno proposition typically relates to whether the price of a particular asset that underlies the binary option will rise above or fall below a specified amount. For example, the yesno proposition connected to the binary option might be something as straightforward as whether the stock price of XYZ company will be above $9.36 per share at 2:30 pm on a particular day, or whether the price of silver will be above $33.40 per ounce at 11:17 am on a particular day. Once the option holder acquires a binary option, there is no further decision for the holder to make as to whether or not to exercise the binary option because binary options exercise automatically. Unlike other types of options, a binary option does not give the holder the right to purchase or sell the underlying asset.
When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all. Given the all-or-nothing payout structure, binary options are sometimes referred to as &ldquoall-or-nothing options&rdquo or &ldquofixed-return options.&rdquo 1 Binary Options Simulator. The Simulator has been specifically designed to assist new traders to understand binary options trading basics . The simulator is easy and fun to use: STEP 2: Read the news and decide: Will APPLE go Up or Down? Apple has just announced: new. revolutionary product is coming soon. Binary Options Trading Made Simple - With "instructions" including major news - 100% Winning Trades. Benefits Of Binary Options Trading. Binary Options are designed to provide trading opportunities, even in flat market conditions where the market hardly moves at all. Binary Options allow you to trade with strictly limited risk. Binary Options Risk and Reward.
This video introduces you to the important concept of a risk and reward ratio when trading binary options. In finance , a binary option is a type of option where the payoff is either some fixed amount of some ass et or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options (more common in forexinterest rate markets), and fixed return options (FROs) (on the American Stock Exchange). 2 When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a "Call" option or a "Put" option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e. g. 60 seconds and up to 30 minutes, an hour ahead or to the close of the trading day. The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have recently issued an Investor Alert to warn investors about fraudulent promotion schemes involving binary options and binary options trading platforms. Non Exchange Traded Binary Options. Binary options contracts have long been available over-the-counter (OTC), i. e. sold directly by the issuer to the buyer.
They were generally considered "exotic" instruments and there was no liquid market for trading these instruments between their issuance and expiration. They were often seen embedded in more complex option contracts. Since mid-2008 binary options websites called binary option trading platforms have been offering a simplified version of exchange-traded binary options. 2 Exchange Traded Binary Options. In 2007 , the Options Clearing Corporation proposed a rule change to allow binary options, and the Securities and Exchange Commission approved listing cash-or-nothing binary options in 2008. In May 2008, the American Stock Exchange (Amex) launched exchange-traded European cash-or-nothing binary options, and the Chicago Board Options Exchange (CBOE) followed in June 2008. The standardization of binary options allows them to be exchange-traded with continuous quotations. 2 Binary Options On The Chicago Board Options Exchange. CBOE Binary Options are a pure and simple way to trade based on your opinion of where a market is headed over a certain period of time. They are contracts that, at expiration, pay out a pre-determined, fixed amount or nothing at all. The payout amount for CBOE Binary options is $100. Like traditional options, Binary Options are based on an underlying security, have various strike prices to choose from as well as various expirations. CBOE lists both call and put Binary Options.
If, at expiration, the price of the underlying security closes at or above the selected strike price, the buyer of a call Binary Option receives $100 per contract. If the underlying security closes at a price that is below the strike price on the expiration date, the buyer receives nothing. In the case of put Binary Options, the put buyer receives $100 per contract if the underlying security closes below the strike price at expiration, and nothing if the underlying security closes at or above the strike price at expiration. Is Binary Options Trading Legal In The US? In the United States, it is 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 &lsquobetting&rsquo against the binary options firm itself. CAN OFFSHORE "BROKERS" TRADE WITH US RESIDENTS? According to NADEX: In the case of off-shore platforms offering binary options to retail customers in the United States, the answer to this question is a resounding "No". As the Director of Enforcement for the CFTC stated in connection with a recently filed lawsuit: "It is against the law to solicit U. S. persons to buy and sell commodity options, even if they are called &lsquoprediction&rsquo contracts, unless they are listed for trading and traded on a CFTC-registered exchange or unless legally exempt." Binary Options Brokers. If your search the web looking for a binary broker you will see that most binary options brokers (platforms) are located offshore . Many of them do offer accounts to US clients, even though this seems to be illegal and there were already civil complaints filed. Usually these "brokers" are simply Internet based trading platforms offering binary options. Most sites that recommend brokers get paid (often $200 or more) for each each visitor that opens an account with one of their "recommended" brokers.
They are completely biased . There's thousands of sites that will show you the best best binary options brokers . Below is an example (please note that since I am unbiased you will not find any affiliate links here) USA Binary Options Brokers. Looking for binary options brokers that serve US customers? You may already have discovered that many brokers refuse to accept customers from the USA. This may lead you to believe that binary options trading is illegal in the US, but this is not correct. Best Binary Options Brokers Accepting USA Customers. HOW DO BINARY OPTIONS WORK? A Binary Option asks a simple yesno question. The price at which you buysell is not the actual price of gold, but rather a value between zero and 100. The bidoffer price fluctuates throughout the day, but always settles at either 100 (if the answer is yes) or zero (if the answer is no). Your profitloss is calculated using the difference between the settlement price (zero or 100) and your opening price (the price you bought or sold at). Binary Options Reviews.
Binary Options Software Reviews: Binary Options Broker Reviews: BINARY OPTIONS HOW TO LOSE A FORTUNE. JUST MAKE A DEPOSIT! How to make money online with 60 second binary options. 60 second binary profit system. Binary options are a simple and rewarding financial trading product. Binary options deliver a fixed return on every trade which is made, depending on whether the trade was "In The Money", "Out Of The Money" or a "Tie". If the EURUSD has an even 5050 popularity DO NOT TRADE there must be a bias one way, even if it's 49% -- 51%. That 2% gap means a lot in the world of binary options and currency trading. Trading binary options with this system is fast paced. In order to catch the winning trade in the 5 point decimal base with your 5 trades you have to be quick. This is especially important in Step 4 below. If you're using a laptop, you might want to use a mouse rather than the trackpad for speed, or if you have a slow mouse INVEST IN A BETTER ONE! This is of vital importance, if you go and make a cup of tea between trades using this binary options system, then you may miss the necessary entry point to win and your odds will drop from up to 100% to 50% so BE QUICK! Do not change the direction you are trading on midway between Step 2 and Step 5. If your starting trade at $5 is a PUT then continue through to Step 5 on PUT do not switch to CALL as your odds will drop from up to 100% to 50%. Also, if a trade comes out as a TIE, you should put on the same trade again as soon as possible.
Profit in 60 seconds again. After each winning trade, ALWAYS check to see if the Popularity has changed from PUT to CALL, as shown in Step 1. Binary Option Signals. Important things to look for before choosing a Binary Option Signals Service : 1) Historically Probable Trades that have a profitable forward trading history and a reason behind the trades versus just simple subjective trades. 2) A Trade Log showing every binary option signal trade and not just highlights of winning trades. 3) Vital Stats: Profitable Days and Draw Days, Losing Days , Consecutive Profitable Days, Consecutive Losing Days, Maximum Drawdown. 5) Easy Access To Signals (Text Message, Desktop Visual and Sound Notifications, Twitter, Trading Chat Room) 6) Longevity (Avoid startups and fly by nights) 7) A Trading Chat Room to help you with questions and to help provide even more trades in the trading chat room. 8) Webinars for Continuing Binary Options Education. 9) Education on everything from basics to advanced Trading. 10) Binary Option Trading Tools like a spread scanner, basic indicators etc. Highest Signals Win Rate Ever: updownsignals. com (they say they offer tools and support) - verified track records.
would doubt it. Binary Options Scams and Fraud. Here's What The Authorities Say about Binary Options: Investor Alert: Binary Options and Fraud issued on: 06062013. Please note that the text below is not the complete joined alert - you can read the complete alert here. The SEC&rsquos Office of Investor Education and Advocacy and the Commodity Futures Trading Commission&rsquos Office of Consumer Outreach (CFTC) are issuing this Investor Alert to warn investors about fraudulent promotion schemes involving binary options and binary options trading platforms. Binary Options Trading Platforms. . Some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by United States regulators such as the SEC or CFTC, respectively, but this is only a portion of the binary options market. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. S. regulatory requirements and may be engaging in illegal activity. The number of Internet-based trading platforms that offer the opportunity to purchase and trade binary options has surged in recent years. The increase in the number of these platforms has resulted in an increase in the number of complaints about fraudulent promotion schemes involving binary options trading platforms. Typically, a binary options Internet-based trading platform will ask a customer to deposit a sum of money to buy a binary option call or put contract. For example, a customer may be asked to pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ company is above $5 per share when the option expires. If the outcome of the yesno proposition (in this case, that the share price of XYZ company will be above $5 per share at the specified time) is satisfied and the customer is entitled to receive the promised return, the binary option is said to expire &ldquo in the money.
&rdquo If, however, the outcome of the yesno proposition is not satisfied, the binary option is said to expire &ldquo out of the money, &rdquo and the customer may lose the entire deposited sum. There are variations of binary option contracts in which a binary option that expires out of the money may entitle the customer to receive a refund of some small portion of the deposit-for example, 5%-but that is not typically the case. In fact, some binary options Internet based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect, given the payout structure. For instance, in the example above, assuming a 5050 chance of winning, the payout structure has been designed in such a way that the expected return on investment is actually negative , resulting in a net loss to the customer. This is because the consequence if the option expires out of the money ( approximately a 100% loss ) significantly outweighs the payout if the option expires in the money ( approximately a 50% gain ). In other words, in the example above, an investor could expect, on average, to lose money. Complaints Relating to Fraudulent Binary Options Trading Platforms. The SEC and CFTC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms . The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of software to generate losing trades. The first category of alleged fraud involves the refusal of certain Internet-based binary options trading platforms to credit customer accounts or reimburse funds after accepting customer money. These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by &ldquobrokers&rdquo over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customers&rsquo withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails. The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driver&rsquos license data for unspecified uses.
If a binary options Internet-based trading platform requests photocopies of your credit card, driver&rsquos license, or other personal data, do not provide the information. The third category of alleged fraud involves the manipulation of the binary options trading software to generate losing trades. These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts. For example, when a customer&rsquos trade is &ldquowinning,&rdquo the countdown to expiration is extended arbitrarily until the trade becomes a loss. Certain Registration and Regulatory Requirements of the SEC. For example, some binary options may be securities . Under the federal securities laws, a company may not lawfully offer or sell securities unless the offer and sale have been registered with the SEC or an exemption from such registration applies. For example, if the terms of a binary option contract provide for a specified return based on the price of a company&rsquos securities, the binary option contract is a security and may not be offered or sold without registration, unless an exemption from registration is available. If there is no registration or exemption, then the offer or sale of the binary option to you would be illegal. If any of the products offered by binary options trading platforms are security-based swaps, additional requirements will apply. In addition, some binary options trading platforms may be operating as unregistered broker-dealers. A person who engages in the business of effecting securities transactions for the accounts of others in the U. S. generally must register with the SEC as a broker-dealer.
If a binary options trading platform is offering to buy or sell securities, effecting transactions in securities, andor receiving transaction-based compensation (such as commissions), it likely should be registered with the SEC. To determine whether a particular trading platform is registered with the SEC as a broker-dealer , visit the FINRA BrokerCheck website. Some binary options trading platforms may also be operating as unregistered securities exchanges. This would be the case if they matched orders in securities of multiple buyers and sellers using established non-discretionary methods. However, there are cases where a registered broker-dealer with a trading system or platform may legitimately have no obligation to register as an exchange. Certain Registration and Regulatory Requirements of the CFTC. It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions (for example, foreign currencies, metals such as gold and silver, and agricultural products such as wheat or corn) with U. S. citizens , unless those options transactions are conducted on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade, or are conducted with U. S. customers who have a net worth that exceeds $5 million. To see the most recent list of exchanges that are designated as contract markets, check the CFTC website. There currently are only three designated contract markets offering binary options in the U. S.: Cantor Exchange LP Chicago Mercantile Exchange, Inc. and the North American Derivatives Exchange, Inc. All other entities offering binary options that are commodity options transactions are doing so illegally.
Further, entities that solicit or accept orders for commodity options transactions and accept, among other things, money to margin, guarantee, or secure the commodity options transactions must register as a Futures Commission Merchant. Entities that act as the counterparty (that is, they take the other side of the transaction from the customer as opposed to matching orders) for foreign currency options transactions for customers with a net worth of less than $5 million must register as a Retail Foreign Exchange Dealer. Washington, DC - The U. S. Commodity Futures Trading Commission (CFTC) filed on June 5, 2013 a civil complaint in federal district court in Nevada charging Banc de Binary, Ltd. (Banc de Binary), a foreign company that held itself out as being headquartered on Wall Street, with violating the CFTC's ban on off-exchange options trading by offering commodity option contracts to U. S. customers for trading, as well as soliciting, accepting, and confirming the execution of orders from U. S. customers. The CFTC's complaint also charges Banc de Binary with operating as an unregistered Futures Commission Merchant (FCM). According to the CFTC's complaint, Banc de Binary operates an online trading website through which customers can buy or sell binary (&ldquocall&rdquo or &ldquoput&rdquo) options, predicting whether the price of a certain commodity will increase or decrease in a given time period. Specifically, from May 2011 through March 2013, Banc de Binary operated an online trading website which allowed U. S. customers to trade options products prohibited by the CFTC's ban on off-exchange options trading. Through its website, Banc de Binary allegedly unlawfully solicited and permitted U. S. customers to buy and sell options betting on the prices of wheat, oil, platinum, sugar, coffee, corn, foreign currency pairs, and stock indices. The CFTC's complaint also charges Banc de Binary with operating as an unregistered FCM from July 2011 through March 2013. Finally, the complaint alleges the company did not limit its options offerings to eligible contract participants, allowing U. S. customers to trade without requiring any information about their trading history or net worth. David Meister, the Director of the CFTC's Division of Enforcement, stated: &ldquoIf a company wants to offer U. S. persons the opportunity to buy and sell predictions on the direction of commodity prices, the company must play by the rules or suffer the consequences.
The applicable rules are on the books for good reason - to protect market participants and promote market integrity - and we will serve the public by enforcing them.&rdquo The CFTC seeks civil monetary penalties, an injunction preventing Banc de Binary from engaging in certain commodity options activity with U. S. customers, and other remedial ancillary relief, including restitution, disgorgement, and rescission. The CFTC acknowledges the Securities and Exchange Commission, the United Kingdom Financial Conduct Authority, and the Cyprus Securities and Exchange Commission for their assistance in the investigation of Banc de Binary. U. S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose. This training website is neither a solicitation nor an offer to BuySell options, futures or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
Please use common sense. This site and all contents are for educational and research purposes only. Please get the advice of a competent financial advisor before investing your money in any financial instrument. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. LOSTMESSIAH. Uncovering the crimes, misdeeds and abuses within segments of the Jewish community in the hopes of effectuating change. Binary Options Scheme. Wealth Recovery and Binary Options Scams – Fighting Fraud and Obtaining Recovery. American Immigrants Win Back Millions For Victims Of Massive Fraud In Israel.
TEL AVIV (JTA) — They were part of the problem. Now they are spearheading a solution. A Tel Aviv-based startup run by young American Jewish immigrants to Israel, or olim, has taken on the largely fraudulent binary options industry centered in this country that has been estimated to generate as much as $10 billion a year. Owned and staffed in part by former binary options employees, Wealth Recovery International has used its insider knowledge to its advantage. “Because I worked in the industry, I understand how these companies operate,” Wealth Recovery’s co-founder Austin Smith, 33, who calls himself a one-time fraudster, said in an interview at the company’s office. “I feel a responsibility to go ahead and help people.” In the absence of serious action against binary options fraud by Israel authorities, Wealth Recovery has helped a couple dozen alleged victims of the industry reclaim a total of more than $4 million. The company has grown rapidly since it was founded in early 2016, in some cases by helping victims of its own employees. The binary options industry has emerged in Israel over the past decade. According to The Times of Israel, which has been investigating the industry for nearly a year, more than 100 Israel-based companies have defrauded hundreds of thousands of people worldwide of billions of dollars – and been blamed for at least one suicide.
Binary options websites have allowed clients to place short-term bets on whether a commodity will increase or decrease in value. In most cases, though, the companies behind the websites have been suspected of rigging the game to take all or nearly all of their clients’ money. Posing as investment houses based in financial capitals like London, they have used aggressive sales tactics to maximize deposits and various ploys to avoid withdrawals. Their identities have been obscured by complex corporate structures that span multiple international jurisdictions, including tax havens. Thousands of olim from the United States and around the world have played a role in helping the binary options companies target foreigners in their native languages. Former employees of several of the companies said more than half their co-workers were olim, and most of them were Americans. Money has been a major draw, with the olim often earning several times what they could otherwise hope to in Tel Aviv, one of the most expensive cities in the world. “David Roth,” a 24-year-old from Southern California, asked to go by the pseudonym he has used as a Wealth Recovery salesman to protect himself from retaliation by binary options companies. After making aliyah several years ago and serving as a combat soldier in the Israeli army, he worked briefly at a fast food restaurant in Tel Aviv, making about $1,000 a month before finding work in binary options. In a good month as a salesman, Roth brought in more than $30,000, mostly on commission. “It’s a hard country, and I’m here alone.
I was trying to build myself something to fall back on,” he said. “Working my ass off at a burger place for 4-5,000 shekels a month max wasn’t getting me anywhere. The problem is that working in binary made me a terrible person, and it eventually broke me.” Former binary options employees have described the industry’s culture as depraved. Trained to lie and apply maximum pressure, salespeople have worked late into the night to hard-sell clients in foreign time zones. Managers have encouraged them to have no mercy, whether the target was a pensioner or a cancer patient. At the central Tel Aviv office of Numaris Communication, a one-time provider of sales and other services for the BinaryBook brand, Smith and another former employee described a vulgar and hard-partying culture straight out of “The Wolf of Wall Street.” After winning a big deposit, salespeople played the video of a song adapted from an episode of the animated TV comedy “South Park.” Together the office would sing the chorus: “And, it’s gone,” referring to the client’s deposit. BinaryBook, which has faced legal action in Britain, did not respond to multiple interview requests. Wealth Recovery and the St. Louis-based Hamm Law Firm have begun preparing a class action lawsuit against another service provider for the brand, Ukom, on behalf of 120 American clients. In February, weeks after law enforcement officials from North American and Europe held an emergency meeting on binary options fraud in the Hague, the FBI said it was investigating the industry around the world. The United States in 2013 had outlawed the marketing of binary options to its citizens, except on a handful of regulated exchanges. Last spring, Israel allowed binary options companies to operate in the country as long as they refrained from targeting its citizens.
In August, Jewish Agency head Natan Sharansky urged the government to shutter the “repugnant, immoral” industry. And in October, Prime Minister Benjamin Netanyahu’s office called for a worldwide ban on its “unscrupulous” practices. Earlier this year, the Knesset’s State Control Committee held two hearings on the government’s failure to deal with binary options fraud. Despite arguments by binary options advocates that entirely shutting down the industry could hurt Israel’s economy and encourage terrorism, the hearings resulted in draft legislation that would do just that. Michael Oren, a former Israeli ambassador to the United States and current deputy minister, called binary options a threat to the Jewish state’s international standing and urged olim to steer clear of the industry for their own sake and that of their adopted country. He said the Knesset should launch an investigation into the industry. “The binary options scheme could be ruinous for Israel’s foreign relations,” he told JTA. “I would tell olim: Your moral standards and Israel’s interests should deter you from engaging in this type of activity. There’s enough work in other fields.” Wealth Recovery has provided alternative employment for a small but growing number of American olim, most of them in their 20s and 30s.
Smith and his two co-owners made aliyah, or immigrated to Israel, from the United States, as did most of the people who work for them. Nearly half the staff, including Smith and another co-founder, came from binary options companies. Others chose to work at Wealth Recovery rather than enter the industry. Former binary options employees have been essential to Wealth Recovery’s success. Their fluency in English and familiarity with the scams have prepared them to pitch the company’s services. They have used some of the same marketing and sales tactics for Wealth Recovery as they did at their previous jobs, including going by pseudonyms. But they said the motive for that has changed from deceiving the client to hiding from the binary options industry, which has threatened those who cross it. “I have nothing to hide from clients anymore. I’m helping them here,” Roth said. “But it’s really easy for people from binary to call us, and a lot of the managers of these companies are serious criminals. You don’t want to mess with them.” Smith, whom clients have known as Mitch Williams, for the first time opened up about his company under his real name for this article as part of an effort to position himself as a public opponent of the binary options industry, which he said he hopes will offer him another kind of protection.
“I want to distinguish myself from all the fraud around me. I want people to know what they should look for in a legitimate recovery company,” he said. “Hopefully binary companies will think twice about coming after me once my name is in the newspaper.” Smith has also begun investing more heavily in advertising and public outreach. He will speak at an anti-fraud conference in Miami later this month, and will sponsor minor league NASCAR driver Stephen Young during a series of races in August. Young gave Wealth Recovery a discounted rate because he was scammed by binary options companies in the past. Former binary options employees, whom Smith said often require some “deprogramming” when he hires them, have also been an asset to Wealth Recovery when it comes to gathering information — the company’s stock in trade. Wealth Recovery has gathered intelligence by developing sources within the binary options industry and searching public records. Yet to have one of its cases tried in court, the company has relied on what Smith called a “shock and awe” approach to pressure more than $4 million in settlements. “The key is to go after little people – the ones who are working the phones and actually taking the money,” he said, “They’ll freak out and pressure their bosses to settle, or they’ll turn against the company they work for.” Israeli attorney Nimrod Assif, who has represented alleged victims of binary options fraud and advocated for immediate government action against the suspected perpetrators, said the recovery industry has fraudulent elements, though he could not comment on specific companies. Assif recommended victims come to experienced lawyers like him, who know how to build a court case using admissible and legally obtained information, but said that what is most important are results. “This recovery industry is a bit problematic,” he said. “First, this is legal work and people need to be licensed lawyers in order to represent victims in this country.
Second, I know for a fact that there are fraudsters also in this industry. “I will say if you put aside ethical issues, the No. 1 priority is to get recovery for victims. So if companies are able to do that, it’s good.” CFTC Fraud Advisories. The Commodity Futures Trading CommissionЂ™s (CFTC) Office of Consumer Outreach and the Securities & Exchange CommissionЂ™s Office of Investor Education and Advocacy are issuing this Investor Alert to warn about fraudulent schemes involving binary options and their trading platforms. These schemes allegedly include refusing to credit customer accounts, denying fund reimbursement, identity theft, and manipulation of software to generate losing trades. Binary options differ from more conventional options in significant ways. A binary option is a type of options contract in which the payout will depend entirely on the outcome of a yesno proposition. The yesno proposition typically relates to whether the price of a particular asset that underlies the binary option will rise above or fall below a specified amount. For example, the yesno proposition connected to the binary option might be something as straightforward as whether the stock price of XYZ company will be above $9.36 per share at 2:30 pm on a particular day, or whether the price of silver will be above $33.40 per ounce at 11:17 am on a particular day. Once the option holder acquires a binary option, there is no further decision for the holder to make as to whether or not to exercise the binary option because binary options exercise automatically. Unlike other types of options, a binary option does not give the holder the right to purchase or sell the underlying asset. When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all. Given the all-or-nothing payout structure, binary options are sometimes referred to as Ђњall-or-nothing optionsЂќ or Ђњfixed-return options.
Ђќ. Binary Options Trading Platforms. Some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by United States regulators such as the CFTC or SEC, respectively, but this is only a portion of the binary options market. Much of the binary options market operates through Internet - based trading platforms that are not necessarily complying with applicable U. S. regulatory requirements. The number of Internet-based trading platforms that offer the opportunity to purchase and trade binary options has surged in recent years. The increase in the number of these platforms has resulted in an increase in the number of complaints about fraudulent promotion schemes involving binary options trading platforms. Typically, a binary options Internet-based trading platform will ask a customer to deposit a sum of money to buy a binary option call or put contract. For example, a customer may be asked to pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ Company is above $5 per share when the option expires. If the outcome of the yesno proposition (in this case, that the share price of XYZ Company will be above $5 per share at the specified time) is satisfied and the customer is entitled to receive the promised return, the binary option is said to expire Ђњin the money. Ђќ If, however, the outcome of the yesno proposition is not satisfied, the binary option is said to expire Ђњout of the money, Ђќ and the customer may lose the entire deposited sum. There are variations of binary option contracts in which a binary option that expires out of the money may entitle the customer to receive a refund of some small portion of the depositЂ”for example, 5%Ђ”but that is not typically the case. In fact, some binary options Internet-based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect given the payout structure. For instance, in the example above, assuming a 5050 chance of winning, the payout structure has been designed in such a way that the expected return on investment is actually negative , resulting in a net loss to the customer. This is because the consequence if the option expires out of the money (approximately a 100% loss) significantly outweighs the payout if the option expires in the money (approximately a 50% gain).
In other words, in the example above, an investor could expect, on average, to lose money. Investor Complaints Relating to Fraudulent Binary Options Trading Platforms. The CFTC and SEC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers identity theft and manipulation of software to generate losing trades. The first category of alleged fraud involves the refusal of certain Internet-based binary options trading platforms to credit customer accounts or reimburse funds after accepting customer money. These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by ЂњbrokersЂќ over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customersЂ™ withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails. The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driverЂ™s license data for unspecified uses. If a binary options Internet-based trading platform requests photocopies of your credit card, driverЂ™s license, or other personal data, do not provide the information. The third category of alleged fraud involves the manipulation of the binary options trading software to generate losing trades. These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts.
For example, when a customerЂ™s trade is Ђњwinning, Ђќ the countdown to expiration is extended arbitrarily until the trade becomes a loss. Unregistered Transactions, Operations, Broker-Dealers, or Trading Exchanges Illegal Options Transactions. In addition to ongoing fraudulent activity, many binary options trading platforms may be operating in violation of other applicable laws and regulations, including certain registration and regulatory requirements of the CFTC and SEC, as described below. Certain Registration and Regulatory Requirements of the SEC. For example, some binary options may be securities. Under the federal securities laws, a company may not lawfully offer or sell securities unless the offer and sale have been registered with the SEC or an exemption from such registration applies. For example, if the terms of a binary option contract provide for a specified return based on the price of a companyЂ™s securities, the binary option contract is a security and may not be offered or sold without registration, unless an exemption from registration is available. If there is no registration or exemption, then the offer or sale of the binary option to you would be illegal. If any of the products offered by binary options trading platforms are security-based swaps, additional requirements will apply. In addition, some binary options trading platforms may be operating as unregistered broker-dealers . A person who engages in the business of effecting securities transactions for the accounts of others in the U. S. generally must register with the SEC as a broker-dealer. If a binary options trading platform is offering to buy or sell securities, effecting transactions in securities, andor receiving transaction-based compensation (such as commissions), it likely should be registered with the SEC. to determine whether a particular trading platform is registered with the SEC as a broker-dealer, visit FINRAЂ™s BrokerCheck .
Some binary options trading platforms may also be operating as unregistered securities exchanges . This would be the case if they matched orders in securities of multiple buyers and sellers using established non - discretionary methods. However, there are cases where a registered broker-dealer with a trading system or platform may legitimately have no obligation to register as an exchange. Certain Registration and Regulatory Requirements of the CFTC. It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions (for example, foreign currencies, metals such as gold and silver, and agricultural products such as wheat or corn) with U. S. citizens, unless those options transactions are conducted on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade, or are conducted with U. S. customers who have a net worth that exceeds $5 million. To see the most recent list of exchanges that are designated as contract markets, check the CFTC website . There currently are only three designated contract markets offering binary options in the U. S.: Cantor Exchange LP Chicago Mercantile Exchange, Inc. and the North American Derivatives Exchange, Inc. All other entities offering binary options that are commodity options transactions are doing so illegally. Further entities that solicit or accept orders for commodity options transactions and accept, among other things, money to margin, guarantee, or secure the commodity options transactions must register as a Futures Commission Merchant.
Entities that act as the counterparty (that is, they take the other side of the transaction from the customer as opposed to matching orders) for foreign currency options transactions for customers with a net worth of less than $5 million must register as a Retail Foreign Exchange Dealer. Because of their lack of compliance with applicable laws, if you purchase binary options offered by persons or entities that are not registered with or subject to the oversight of a U. S. regulator, you may not have the full benefit of the safeguards of the federal securities and commodities laws that have been put in place to protect investors, as some safeguards and remedies are available only in the context of registered offerings. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings. Ђў RememberЂ”much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. S. regulatory requirements and may be engaging in illegal activity. Ђў Do not invest in something that you do not understand. If you cannot explain the investment opportunity in a few words and in an understandable way, you may need to reconsider the potential investment. Ђў Before investing in binary options, you should take the following precautions : 1. Check to see if the binary options trading platform has registered the offer and sale of the product with the SEC. Registration provides investors access to key information about the terms of the product being offered. You can use EDGAR to determine whether an issuer has registered the offer and sale of a particular product with the SEC. 2. Check to see if the binary options trading platform itself is registered as an exchange. To determine whether the platform is registered as an exchange, you can check the SECЂ™s website regarding Exchanges . 3. Check to see if the binary options trading platform is a designated contract market. To determine whether an entity is a designated contract market, you can check the CFTCЂ™s website . Ђў Finally, before investing, use FINRAЂ™s BrokerCheck and the National Futures AssociationЂ™s Background Affiliation Status Information Center (BASIC) to check the registration status and background of any firm or financial professional that you are considering.
If you cannot verify that they are registered, donЂ™t trade with them, donЂ™t give them any money, and donЂ™t share your personal information with them.
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