Before you trade binaries anywhere you need to be aware of this fraud alert put out by the CFTC. There currently are only three designated contract markets offering binary options in the U. All other entities offering binary options that are commodity options transactions are doing so illegally. Many have thought we where nay sayers or just Nadex promoters. But now the CFTC is putting out the same alerts to watch out for binary bucketshops.
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. 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.
All other entities that are offering binary options that are commodity options transactions are doing so illegally. Check to see if the binary options trading platform is a designated contract market.
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. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings. 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.
In other words, in the example above, an investor could expect, on average, to lose money. 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: 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.
The second category of alleged fraud involves identity theft. 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.
Many excerpts taken directly from: Retail Click the link to open a nadex account. Or signup on our free member site using the link by clicking here. CFTC warns traders about fraudulent schemes involving binary options and their trading platforms. North American Derivatives Exchange: Join Now For Free!More...