Binary Options Blacklist – Who is Legit

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

TBBOB

Fighting online scams since 2020

Binary Options Watch Dog is a scam web site

OK, we’ve had enough, we have to uncover the truth behind the BinaryOptionsWatchDog.com web site. It is a bunch of scammers led by Michael Freeman.

Freeman is popular in the binary options community because of his video channel on YouTube, but he has gone too far, he is endorsing scams, and he even may be orchestrating some of these scams.

The Binary Options Watch Dog web site is supposed to uncover binary options scams, which it does in some cases, but when you can make money supporting a scam, they just do it. In other words, if a scam has an affiliate program and Freeman can earn commissions, he writes a fake review and gives his recommendation to this scam.

How do we know that? You just have to look at the links they provide, when they link to a scam, the use an affiliate link via the Clicksure network, for example 82940.virtnext.cpa.clicksure.com. So if somebody joins the scam through their link, they will get paid. This why they endorse scams, they make money on them.

Virtnext

The most obvious example is the newest scam called Virtnext. Not only Binary Options Watch Dog is recommending this obvious scam, but they also faked proofs to make it look legit. Because they say that there is a real person behind Virtnext – the billionaire Vincent Bollore – and they show a screenshot of the Fortune web site with an article about Virtnext and Bollore.

But it is a fake, Fortune has never published anything about Bollore or Virtnext, see images or try yourself to do a search on the Fortune’s web site (here and here).

Michael Freeman signed under the Virtnext welcome e-mail.

This is a 100 % proof that BinaryOptionsWatchDog.com is actively supporting binary options scams. And there is more, because somebody posted his welcome e-mail from Virtnext, and it was signed by Michael Freeman himself! So he probably is the person directly behind this scam.

We can see that there are a lot of fake binary options reviews web sites that were built only to support scams and make them look legit.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!

  • Binomo
    Binomo

    Good choice for experienced traders!

Some of them are probably in a network with Binary Options Watch Dog, like Objective Binary Options a Binary Options Spot, because they all are supporting Virtnext with their logos and fake reviews.

Conclusion

It is incredibly sad what is happening in the binary options industry right now. For 1 honest web site there are 99 scammer’s web sites that are recommending scams.

The safest is really not to trust any binary options automated trading system or strategy that is offered in a way that you have to open an account with a broker, deposit money and immediately trade the system. Do not trust anyone who wants you to this. Trade only with regulated brokers, the best is to trade your own strategy manually.

When somebody claims that a system or strategy is free, do not trust them, unless they let you try it for free without depositing money.

And do not rely on reviews published on the Internet by scammers like Binary Options Watch Dog, Objective Binary Options or Binary Options Spot. The vast majority of review sites are unfortunately fake and dishonest.

“Binary Options Spot” and “Objective Binary Options” web sites supporting Virtnext and Michael Freeman.

20 Best Binary Options Brokers 2020

It is most likely that you have come across the term Binary Options while surfing the net, even if you don’t know what it means. Maybe someone told you, or you read somewhere that you could make impressive returns trading on binary options, and it sounded too good to be true. Maybe they said you could lose all your investment in a flash of a second, and got you scared to even try. There are many in similar circumstances with many questions about binary options lingering in their minds. Before we get to any aspects of Binary options, let explore what it is first, for the sake of anyone who is completely green to the concept.

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Binary options are a form of financial trading that involves a fixed amount of pay-off or nothing. That’s why it is called binary options anyway. It is either a 1/0 or Yes/No. There is no other option between. The trading is normally carried out online. The online trade is enabled by binary options traders. The trade involves a variety of instruments like fixed return options and digital options as forex, stocks and market interest rates. That explains why some people will tell you that you can quickly double your money, while others say you can lose it all. There is a lot of speculation among the masses about how binary options work. Many people have lost their hard-earned money because of lack of information. Before you get involved, it is prudent toe sure you understand all the risks involved. You should also work with a binary options broker that you can trust. There are many binary options brokers in the business.

We seek to bust the myths and present the facts as far as binary options and binary options brokers are concerned. There is a lot of misleading information circulating around. There are not many objective options broker reviews either. This is a review of some of the best binary options brokers. The review is essentially a binary options brokers list. The review will give you a deeper understanding of how they operate. The review seeks to arm you with relevant information before you get involved with binary options. Trading in binary options, otherwise known as hedging, can be a blessing or a curse to yourself depending on how you handle. We certainly seek to ensure it is never a curse. The review will explore various aspects of the binary options brokers such as

  • Trading platform
  • Minimum deposit
  • Maximum returns
  • Bonuses

The review will also explore the various laws and regulations governing binary options trading in various countries. It will also highlight a few dos and don’ts as far as binary options trading is concerned. We cannot promise that you make a lot of money after going through the review, but we can promise to show you how not to lose all your money. Tag along and let’s find out what binary options trading is really all about, and find binary options trading best brokers as well.. Below is a binary options broker list with some of their terms of engagement.

Note: Based on my experience, I personally recommend IQoption , ExpertOption & Olymp Trade but please read the full review to select the one that suits you especially from first 5.

Best Binary Options Brokers 2020 Comparison Table

Broker Min Deposit ($) Min Stake ($) Max Payout (%)
IQ Option 10 1 95 1st Choice
ExpertOption 50 1 95 2nd Choice
Olymp Trade 10 1 92 3rd Choice
HighLow 10 10 90
OptionRobot 100 5 85
Ayrex 25 5 85
CryptoRobot365 10 1 90
BinaryRobot365 10 1 95
Binary.com 250 5 85
Finmax 250 10 90
FXMasterBot 100 5 90
BinaryCent 250 10 95
BinaryMate 250 10 90
RaceOption 250 1 90
AutoMatedBinary 10 1 90
ZoomTrader 1000 10 83
HYoption 100 5 83
24Option 100 24 88
Binomo 10 1 90

Best Binary Options Brokers 2020

1) IQ Option

IQ Option is a Seychelles-based online trading platform launched in 2020. It has found a lot of favor in South Africa. It is one of the best binary option brokers in South Africa. They claim to be one of the fastest growing online trading platforms, with over 25 million members to date. Their services include forex trading, stock trading, and ETF trading. There are binary options brokers too. They have over 10 million digital options on which you can trade. You engage in the binary options trade by speculating on the global market currencies, indices, stocks, and commodities movement.

Trading Platform

IQ Option has a website and App on which you can trade. It depends on what you prefer or what is accessible to you. You go to the instruments menu and choose the asset you want to trade in. Each asset is assigned the current profit percentage. You then choose the duration that you want to explore the asset for. The end of the duration will be marked with a red line on the chart. The system will also set a deadline for making the selected trade. Then put up the value you want to trade and confirm using the call or put buttons. You have the option to sell the option before it expires. If you choose to wait until the end of the duration, you will get 95% profit if your prediction was correct or lose the investment if your predictions were wrong.

  • The minimum deposit on IQ Option is $10 for a real account or $3000 for a premium account
  • The minimum investment is $1
  • The maximum returns are 95% profit on your stake
  • IQ Option offers no bonuses.
  • IQ Option is certainly one of the best trading brokers.

2) Expertoption

Expertoption is a binary options broker with a global trading platform. The platform is available to people in over 150 countries across the world. Expertoption was launched in 2020, and it has 8,707,538 registered traders so far. Expertoption is an award-winning platform, having been recognized as an award-winning platform in the China Trading Expo Shenzhen, 6-7 May 2020. The broker offers up to 100 options of assets to trade with. Expertoption does not offer its services to residents of the following countries; USA, Canada, European Economic Area, Switzerland, New Zealand, Australia, Japan, North Korea, Puerto Rico, Sudan.

Trading Platform

Expertoption operates both website and app trading platforms. You can log in to your account on any platform you feel comfortable with. They offer a free demo account too, for novice traders to first test their knowledge before investing any money. The platform has an education center for green beginners too. There is a lot of educational material on the center that you can go through and get relevant insight pertaining to binary options trading. The platform is quite responsive, and it runs 24/7. It offers the following technical analysis tools.

  • Four chart types, eight indicators, trend lines
  • Social trading – this feature allows you to watch other people around the world closing deals, or to trade with your friends
  • The demo account gives you $10000 to try out with

The platform offers five types of trading accounts as follows;

  • Basic – this account is for people who prefer a light start. The minimum deposit for this account is $50
  • Silver – this account includes free consultations. Apparently, many people choose to start here. The minimum deposit is $500.
  • Gold – this account offers you more privileges features and smart investment tips. The minimum deposit for this account is $2500
  • Platinum – this account is regarded as the ultimate account for serious investors. The platform offers exclusive account management and their best expertise. The minimum deposit for the account is $5000.
  • Exclusive – this exclusive account is only an invited-persons only account. It is reserved for people with the highest returns. You can contact your account manager about it, that is if you already have a platinum account.

The maximum returns can go up to 95% profit on the invested amount.

3) Olymp Trade

Olymp Trade is a Cyprus-based online trading platform launched in 2020. The platform boasts of over 20000 traders in a day. It is currently registering a growth 7% in payouts every month, with last month’s payouts totaling to $ 7 969 557. Olymp trade is yet another incredible option for a beginner. It has very insightful educational resources for trading. It is one of the best binary options brokers in Nigeria.

Trading Platform

Olymp trade runs web, android and apple trading platforms. They offer a demo account that you can experiment with first before moving to a real account. It is one of the best binary options brokers with demo accounts. They offer 24/7 trading and over 60 assets that you can trade with. The trading platforms are quite responsive and self-explanatory. The process of setting up and completing a trade is quite simple. The platform also offers you trading signals from experienced VIP traders, to help you make profitable trades.

  • The minimum deposit is $10
  • The minimum investment is $1
  • The maximum returns are 92% profit on your stake

4) HighLow

HighLow is an Australian based binary options broker. A number of platforms won’t admit Australian traders. This is one of the best Australian binary options brokers. It is a great platform for those who like trading for short duration times. It is one of the best 60second binary options brokers. The platform prides itself in a wide range of binary options and some of the highest payouts. They have done over 200% profit on investment payouts. HighLow runs on the MarketsPulse trading platform. It does not accept trader from the US though.

Platform

HighLow has a web, Android, and iPhone Apps trading platforms. They offer a demo account for beginners with a $50 bonus upon sign-up. It is one of the best binary options brokers for beginners. It allows them to test their knowledge before putting in all their money. You select the instrument you want to trade from the top toolbar. It has the current market value indicated on it. You then set up the duration you want to trade for and confirm. There is an expiration duration line beyond which you cannot make any changes on the investment. Your speculations should not go out of the set high and low marks.

  • The minimum deposit is $10
  • The minimum investment is $1
  • The maximum returns are 90% profit on your stake
  • There is a bonus of $50 upon signup
  • HighLow is one of the best binary options brokers with low minimum deposit.

5) Optionrobot

Optionrobot is a high-risk high-return binary options trading robot service. If you are not shy of taking huge risks with high potential returns if all goes well, then Optionrobot the platform for you. The platform’s robots generate trading signals and execute the trade directly to your broker account. Optionrobot boasts of an 83% winning rate. That’s rather impressive. You might not want to stake money you cannot afford to lose on Optionrobot though.

Trading Platform

Joining Optionrobot is quite easy and straightforward. You just sign-up, make a deposit and set up your robot to start trading. Optionrobot features three trading systems. The systems have different risk levels. They are;

  • Classic System – this system has the lowest-risks, and the lowest potential income as well. It is considered the safest and secure. The prospects of making any substantial returns are quite slim though.
  • Martingale System – this system offers you the highest possible returns, but also the highest risks. If you get it right on this system, you’ll be smiling all day long. The risks of losing your money remain high though.
  • Fibonacci System – this is the most accurate system. It is a middle-ground between the two. It strikes the critical balance between returns and risks. You could lose money as much as you could win some.

The other important aspect of the Optionrobot is the trading indicators. These help you set up the robot. The robot monitors these indicators as long as it is active, and makes decisions based on the settings you provide. Optionrobot has six trading indicators that you can make use of. You can work with multiple indicators depending on your knowledge of them. All the indicators need to send a sell signal to the robot for it to sell though. They also need to all have a buy signal if the robot is to buy. The signals include;

6) Ayrex

Ayrex is yet another binary trading broker from Cyprus. Ayrex launched its platform in 2020. It is however not regulated by CySEC though. The company has applied for licensing from CySEC. The platform boasts of over 230000 subscribers to date. It also takes pride in some of the fastest trading speeds with 99.95% of its trades taking place in a mere 28ms. The platform allows direct or high low speculation on the trend of the asset you choose to trade with. Except for the being unlicensed Ayrex seems like the ultimate binary options trading broker.

Trading Platform

Ayrex has a very interactive and responsive website. They also operate Android and iPhone Apps. You can choose to log in to any of these platforms depending on which one works best for you. Ayrex offers several trading accounts. One of the accounts that stand out is the Islamic account. Ayrex has put up an account for Islamic people, that is in full compliance with sharia laws. Trading on Ayrex.com is easy and straightforward.

  • First, you register for a free account
  • You will have to verify your identity
  • You then make the minimum deposit of $25
  • Click the start trading button
  • Select the options you want to work with. Ayrex has a couple of options.
  • Choose the asset that you want to trade with
  • Speculate depending on the option you have chosen
  • Stake the amount you want so long as it within the minimum and maximum investment values
  • Confirm the trade before the deadline and wait for the results.

Ayrex may not be the best platform for beginners. There is not much learning material or guidance resources available. You need to know how to analyze the market and make correct predictions before you engage on the platform. Otherwise, you will be risking losing your capital. You can choose a demo account first before engaging on the real account so that you get to learn the ropes.

On the short-term direct speculations, Ayres pays up to 80% profits on the invested amount. The long-term or high-low speculations could attract a payout of up to 85% profits on the invested amount. Ayrex has frequent trade signals that have been proven to have a winning rate of 60%. That’s is not a winning rate you want to put your trust one if you are not experienced though, considering their payouts are a bit low. All factors considered, they are still one of the best binary options brokers 2020.

7) Cryptorobot365

Cryptorobot365 is yet another Seychelles-based binary trading broker. It mainly deals with cryptocurrencies. You can trade with Ethereum, Bitcoin, Monero, Litecoin or Ripple. The platform, unlike the others, is quite straightforward. You just buy the cryptocurrency of your choice under speculation that it will appreciate in price. The platform is an automatic platform. It monitors the trends in the cryptocurrency market and sells or buys cryptocurrency on your behalf to help you make profits.

Trading Platform

There is not much to learn about the Cryptorobot365 trading platform. They have web and app trading platforms. You can choose any depending on your preference. The platform needs you just to deposit the minimum amount, select the cryptocurrency you want to trade in, and activate the robot. It is one of the best binary options robots. This model is a great option for people without sufficient knowledge about cryptocurrencies. Keep in mind that you could lose the money too. The platform has a demo account that you can use to try out first before you invest your money.

  • The minimum deposit is $250
  • The maximum returns are dependent on the margins of the sales made

8) BinaryRobot365

Binaryrobot365 is yet another robot based binary options broker. Instead of you monitoring the markets, yet set the ideal market conditions and let the robot make the trade when it detects them. Binaryrobot365 claims to register up to 90% win-rate among it traders. It is a great platform for novice traders to try their hand in binary trading. Binaryrobot365 is one of the best binary options brokers in India.

Trading Platform

Binaryrobot365 operates web and app platforms. You just sign up for an account, choose a binary robot service provider and switch on the auto-trade function. It is important to note that the binary robot you choose is a central determinant of whether you are going to make money or not. Make sure the service provider you settle for can be trusted. The robots are technically developed and are based on empirical data. Some of the market factors are non-quantifiable though. Therefore, the robots cannot guarantee you returns.

  • The minimum deposit is $100
  • The maximum returns are dependent on the broker you choose. The returns range between 85% and 90% profit on your investment.

9) Binary.com

Binary.com is a UK-based binary trading broker. It has been licensed by and is under the regulation of the British Isles, Malta, Ireland and the UK. It is one of the most transparent binary options brokers uk. It has made declarations of owning the company, and it is in charge of the market operations. The platform brings together aspects of gambling and binary trading. Its services include FX margins, Crypto trading via MT5 and CFDs. Binary.com offers you over 100 instruments to trade with. Binary.com also offers you interactive webinars, daily market reports and eBooks and videos for learning, all for free.

Trading Platform

Binary.com operates a website and Android and iPhone Apps. You can log in to your account on any platform of your choice. The platform also offers you the option to trade on a virtual account before you move to a real account. Newbies to binary trading can take advantage of the virtual platform and learn the ropes. The platforms run 24/7 all year long. They have interactive and easy to understand charts to help you follow the market trends. The platforms are quite responsive too.

The minimum deposit for a bank transfer or by bank card is $10. Those with e-wallets can deposit as little as $5. You start trading by choosing an instrument to trade with and setting aside a trading duration. You have to have to complete the trade before the expiry time.

The return percentages are not fixed. They vary from time to time. You need to have more than 25 turnovers so that you can have a withdrawable amount. Binary.com also pays a 1.5% payout commission.

The bonuses are not fixed either. You can get two types of bonuses. There is the deposit bonus and the free bonus. You get the deposit bonus one you deposit money above a certain amount. The free bonus is given as per the results of your trades.

10) Finmax

Finmax is a Bulgaria-based binary options broker. The platform was launched in 2020 and boasts of a team of financial market professionals who help people around the work trade in binary options. The platform does not admit US traders though. Finmax has a couple of awards under its belt. They are an indication of its prowess as far as binary trading is concerned. Finmax also offers some of the shorted trade durations. You can set the trade to last for as little as 30 seconds. You can also set long durations. They can be as long as six months, depending on your speculations.

Trading Platform

The trading platform allows an easy sign-up process. It has a lot of educational materials. You have access to eBooks, videos and live webinars from the financial market professionals. Finmax also offers a free demo account that you can use to familiarize yourself with the account. Finmax offers five types of real trader accounts. They are;

  • Bronze – this trader account has a minimum deposit of $250 and full access to all the features. It also attracts up to 25% bonuses and as well as a payout of 75% more than assets.
  • Silver- this account requires a minimum deposit of $1000. It features risk-free trading for up to 25% of your deposit and up to 50% bonuses.
  • Gold- this gold account requires a deposit of $5000. It features +2% of return per each trade and up to 100% in bonuses
  • Platinum – this account requires a minimum deposit of $25000. It features +4% of return per each trade and up to 100% in bonuses
  • VIP – this account requires a minimum deposit of $100000. It features +6% of return per each trade and up to 100% in bonuses

The accounts’ privileges rise with the account’s rank. The high ranked accounts have a lot more privileges.

Trading on the platform once you have the account is easy and straightforward. You choose the asset you want to trade in. You then choose the above and below points. These are the high and low points you are speculating the asset to remain within. You then choose the expiry time and complete the trade before the deadline.

Finmax offers up to 90% profits on the invested amounts. These are some of the highest binary trading revenues you can get.

11) FXMasterBot

FXMasterbot is yet another binary trading robot. It offers 17 forex pairs and five cryptocurrencies to trade with. FXMasterbot claims the platform made by a team of financial analytics professionals. It delivers trading signals after every minute. The system just like many robots, allows you to connect to your broker’s platform.

Trading Platform

Engaging in FXMasterbot is quite simple. You just need to sign-up for an account, then fund your broker’s accounts and set-up the robot and activate it. The robot will trade according to the delivered signals. Unfortunately, the information available about the operation and payout of FXMasterbot is quite scanty.

You can log in into your account using the browser platform or the Apps, either Android or Apple depending on your preferences. It is not prudent to invest on a platform whose results you don’t know and have no way of finding out though. There have been various complaints from traders who have used the platform.

12) Binarycent

Binarycent is a forex CFD trading platform. You trade in binary options with forex as the asset. Binarycent has one of the lowest minimum investment amounts. You can invest as little as 10 cents on Binarycent. Binarycent works just like a majority of the other binary options brokers.

Trading Platform

Binarycent offers three types of accounts depending on the starting capital you have. They are;

  • Bronze – this is the lowest caliber trading account on Binarycent. The minimum deposit required is the $250. The account features 24/7 live video support, I hour withdrawals, 20% bonus, and a copy trading tool.
  • Silver – The minimum deposit for this account is $1000. The account features all the privileges on the bronze account, plus 50% bonus, master class training, and first three risk-free trades.
  • Gold – this is the highest caliber account requiring a minimum deposit of $3000. It features all the features in the silver account, plus 100% bonus, and a personal success manager.

Binarycent also offers a demo account for novice traders. You need to have a certain level of knowledge before you decide to engage in the platform though. Once you have one of these accounts, you can go ahead and choose an asset to trade with. Set up the duration and put up your stake.

Binarycent has maximum revenues of up to 95% profit on the staked amount. You can access the platform through your windows or mac browser, as well as through an Android or Apple App. Their methods of funding the account and withdrawing are quite simple. Unfortunately, the platform offers no trade signals. Your trade is solely based on your analysis and speculation, unless you have the Gold account. You can get some advice from your success manager. Either way, the decisions are still all yours. The manager can only give pointers.

13) Binarymate

Binarymate is a UK-based binary options broker. The UK has strict regulations for binary options trading. Binarymate is registered in the UK, and it accepts US traders too. It is one of the most reliable and secure binary options trading platforms. It is actually one of the most trusted binary options brokers. Binarymate offers more than 100 assets to trade with. It boasts of 5372 trading accounts in the system and $ 3452175 worth of trading volume in the last month. The platform also offers a lot of training and educational materials that newbies can take advantage of.

Trading Platform

Binarymate operates a proprietary website, but they don’t have either android and iPhone Apps. You can conveniently access the platform from any device of your choice. The platform is quite easy to sign-up to. They have three types of accounts, each with a minimum deposit. The perks of having an account with Binarymate include;

  • 24/7 live video support
  • 1-hour withdrawal processing time
  • Secure trading and data protection

The accounts are;

  • Bronze- the bronze package features a minimum deposit of $250. You will also get a 20% bonus on your deposit.
  • Silver- this account requires a minimum deposit of $1000. It also comes with a 50% bonus
  • Gold- this is the highest caliber account. It requires a minimum deposit of $3000. It allows you to choose between a bonus of $250 or risk-free trades.

Binarymate offers stellar customer care support and through their live chat video agents. The agents are available 24/7. It is the best binary options brokers with low minimum deposit uk.

You have the option to start with a demo account if you are a novice to binary trading. You do not have to invest your money before you have learned the ropes and risk losing it. Binarymate is one of the few offshore binary options brokers US. It also one of the best binary options brokers usa.

  • Minimum deposit: $250
  • Maximum returns: 90%
  • Bonuses: up to $250, risk-free trades

14) Raceoption

Raceoption is yet another highly rated binary options broker. Raceoption is UK-based and is subject to the UK’s strict laws and regulations. The brokerage was launched in 2020, and it has one of the friendliest platforms. Raceoption accepts traders from all over the world, including those from the US. The platform boasts of average trader earnings of 1217 per month. It has 1570 traders as at the moment and more than $1.9 million in trader earnings per month.

Trading Platform

Raceoption operates a user-friendly proprietary website and an App on both Android and Apple platforms. Raceoption offers three types of accounts. You can sign-up for any one of them depending on the starting capital that you have. The platform offers you over 100 assets that you can trade in. Trading on the platform is quite easy and straightforward too. Below are some general steps;

  • You first select the asset you want to trade in on the drop-down menu.
  • Choose your preferred expiry time
  • Choose the amount you want to invest
  • Confirm the trade before the deadline allowed
  • You will profit with a fixed amount if it turns out you were right.

Raceoption has the signature three accounts. They are;

  • Bronze- this account requires a minimum deposit of $250. It features a bonus of 20%, 24/7 live support, I hour withdrawal, demo account and copy trading tool.
  • Silver– this account requires a minimum deposit of $1000. It has all the features in the bronze account, plus 50% bonuses, a master class training, first 3 risk-free trades and an individual account manager.
  • Gold- this is the ultimate account on Raceoption. It requires a minimum deposit of $3000. It has all the features in the silver account, plus integrated technical analysis, and up to 100% in bonuses.

Raceoption has a wide range of funding and withdrawal methods. You can choose one that suits your convenience. Raceoption has up to 90% payout profits. These are some of the highest payouts in the industry. Many brokers do not admit USA traders. Raceoption is the best binary options brokers for USA traders. It is one of the best us regulated binary options brokers.

15) AutoMatedBinary

Automatedbinary is a binary options trading robot. It is a great service for novice binary traders and veterans as well. It allows you to work with several binary options brokers. You can connect your robot account with several binary options brokers too. Automatedbinary offers you three robots plans depending on the level of risk you are willing to take. Keep in mind that high-risk options mean you can easily lose the money, but you will get a pretty sum if you turn out to be right. Low-risk options may not have high returns even if you are right.

Trading Platform

Automatedbinary runs a proprietary website and an App on both iPhone and Android platforms. Engaging on the platform is quite simple. You just sign up, choose the broker you want to work with, and fund the broker account. Keep in mind that the payouts and bonuses you get are dependent on the broker you choose. The brokers have different accounts on offer depending on the amount you can deposit as the minimum deposit.

You then embark on setting up the robot. Choose the risk plan you are willing to work with. Automatedbinary offers three risk plans. They include;

  • Safe classic – this is a basic low-risk plan. It is a great place for novice traders to begin so that they have time to study the trends before possibly losing a lot. You can set the trade amounts to be anywhere between $5 and $500.
  • Compound martingale – this is a high-risk plan. It is mainly used by casino gamblers. This plan is better for a veteran who has studied the trends for a while and knows what to do when. You can easily lose the money on this plan, but you will be smiling all day long if you turn out right.
  • Accurate Fibonacci – this plan is a middle ground between the latter two. Many traders choose this plan. It represents reasonable risk levels and impressive returns when your speculations are on point. You could still lose though.

The next part of setting up the robot is the match indicators. The indicators are the prompts that tell the robot when to buy or sell. Automatedbinary offers six indicators. You can choose one that you are comfortable with, or multiple if you know how to work with them. Keep in mind that the indicators must send identical prompts for the robot to execute any trade. If you are using two indicators, both indicators might signal to buy for the robot to sell. It applies the same if you are using six of them. More indicators reduce the risk involved in the trade. However, you might end up with zero or very little returns if you combine too many indicators. Automatedbinary works with the following indicators.

  • TREND indicator
  • CCI indicator
  • RSI indicator
  • Williams indicator
  • Stoch indicator
  • MACD indicator.

16) ZoomTrader

Zoomtrader is a Belgium-based binary options trader. Just like many others, it offers the opportunity to trade in stocks, forex pairs, and commodity movement. Zoomtrader has a very interactive platform. However, the platform has no information about its previous trades or revenues generated. That is always a red flag.

Trading Platform

Just like all the others, Zoomtrader offers web and mobile trading platforms. It features three types of trading accounts. The accounts are as follows;

  • Bronze – this account requires a minimum deposit of $1000. It has one trading strategy, weekly market reviews, and an introductory video course.
  • Silver – this account requires a minimum deposit of $5000. It features two trading strategies, daily and weekly market reviews, introductory and advanced video course.
  • Gold – this account requires a minimum deposit of $100000. It features five trading strategies, daily and weekly market reviews, introductory and advanced video course, individual account manager, weekly one-on-one trading sessions and same day withdrawals.

ZoomTrader features payouts of up to 83% profit on investment and bonuses of up to 100% on the first deposit.

17) HyOption

Hyoption is a binary options broker that is licensed by CySEC. It is owned by a company called HYCM based in Cyprus. Hyoption just like many other brokers allows you to trade in binary options using various assets. It offers up to 100 assets that you can trade with. Hyoption does not offer much information regarding how many subscribers they have on the platform, or the revenues collected. Their trading platform has similar features as many other brokers that we have reviewed.

Trading Platform

The Hyoption trading platform is user-friendly and features most of the basic features we have become accustomed to. They operate both proprietary webs and Apps on both Android and iPhone. The system allows you to choose an asset of your choice and speculate on its trend over a preferred period of time. Hyoption have a wide range of options with regard to time. The options range from 30 seconds options to 1-month options.

Hyoption has a very straightforward and easy to use the account. The minimum deposit for a Hyoption account is $100. The minimum investment amount is $5. It offers maximum payouts of up to 83% profit on the invested amount. Hyoption offers bonuses of up to $10000 for new traders. The bonuses are subject to terms and conditions regarding their withdrawal though.

18) 24option

24option is an online trading platform based in Belize City, Belize. It has been around since 2020, and it is one of the most stable and reliable trading platforms. It is under the rules and regulations of CySEC (we are going to talk about this later on in the review). 24optios’s binary trading is enabled by a third-party entity named TechFinancials trading platform. 24option does not accept traders from the US and Australia.

Trading Platform

24option has a website and Apps on both play store and Apple store. Once on the platform, you choose the CFD (contract for difference) you want to trade with on the upper toolbar. There is a filter to control the CFDs you want to see. The platform features indices, forex, stock, and commodities. Next is to choose the direction in which you want to invest. There are numbers in the Buy/Sell buttons that indicate the points required to pass for a successful trade. You trade has to be higher than the number indicated in the buttons. Then choose the duration for which you want to trade and confirm. The graph will show you the progress of your trade. Green means your speculation is positive while red means they are negative.

  • The minimum deposit on 24option is $250
  • The minimum investment is $24
  • The maximum returns are 88% profit on your stake
  • There are bonuses of up to 100%
  • Regardless of a high minimum deposit 24option has already carved a name for itself as one the best option trading brokers.

19) Binomo

Binomo is yet another Seychelles-based binary options broker that has been in operation since 2020. It has been providing brokerage services for Russians. Binomo is registered and regulated by the EU. Binomo prides itself on unique and affords trading conditions. It is hailed as one of the safest and most reliable binary trading platforms in the industry. It is a great platform for binary trading newbies too. It has a wide range of training resources.

Trading Platform

In 2020 Binomo had the best trading platform. It still has one of the best trading platforms today. When the platform was launched in 2020, it shook the market and won Binomo a huge chunk of the market. Binomo offers up to 80 assets that you can trade with. The assets include some of the worlds largest companies. Binomo offers four types of accounts each with different privileges depending on the minimum deposit. The accounts are;

  • Demo account– this account is meant for novice traders to experiment before they start staking actual money.
  • Standard account– the minimum deposit for a standard account it as low as $10. This account allows you access to the real market and analytical support. You can also take part in tournaments and special offers. This account has payouts of up to 83% profits on the staked amount.
  • Gold account– this account has a minimum deposit of $500. The privileges of this account include an expanded list for trading assets, a personal manager, bonus funds and 5% refund on losses. This account has payouts of up to 86 % profits on the staked amount.
  • VIP account – this account attracts a minimum deposit of $1000. It is accompanied by privileges such as 10% refund on losses, the widest choice of assets, personal manager accessible on skype, and 4 hours withdrawals. This account has maximum payouts of up to 90% profits on the staked amount.

Best Binary Options Broker Selection Guide

The reviews above are meant to give you insight about how binary options trading works and the various brokers involved. Our aim is to ensure you have a blissful and profitable trading experience. It would be unfortunate for you to invest your hard-earned cash into a certain platform, only to lose it all. Before you settle on any of the brokers, there are a few common factors you are supposed to consider. The factors are;

Licensing and Regulation

The binary options brokers are supposed to be licensed for operation by the relevant authorities. They should be operating under the regulation of these authorities. The regulation is always in place to ensure you are protected from scams. If you are not a financial analysis professional, it would be difficult to tell whether the market trends being displayed on the charts are real. The regulation is meant to ensure the brokers do not take advantage of the naivety of some traders. Regardless of any reviews you might have seen about various brokers, ensure the broker you choose to trade with is licensed and under regulations. For instance, CYSEC is one of the most respected regulation bodies. It regulates brokers based in Cyprus. It might be challenging to best binary options brokers for us traders because of USA’s tight regualtions.

Minimum Deposit

Ultimately, you can only invest the amount that you have. Take time to explore the various binary options brokers whose minimum deposits you can meet. Fortunately, many of the brokers have broken down their services into various packages for people with different financial capabilities. Check relevant reviews to find out which of the brokers whose minimum deposit you can meet is best for you. They are a number of brokers with very minute minimum deposits.

Maximum Payouts

Different brokers offer different percentages of payouts. Obviously, everyone would want the broker with the highest payouts. Compare the payout and other factors such as customer support, market signals and tips, educational materials, and others. This will help you judge how fair the payouts the broker is offering are.

Conclusion

The reviews and guide above should help you choose your best-suiter binary options broker. We sincerely hope this review can help you trade in binary options profitably. The review has some of the top binary options brokers. You should be able to get a great binary options broker. Happy trading!

Recently, however, the industry has undergone a massive upheaval. More and more countries have moved to put a hard ban on binary options trading.

This guide will help you figure out the legal status of binary options trading in the following countries: Australia, Belgium, Canada, Cyprus, France, Israel, Japan, Malaysia, Malta, the Netherlands, Russia, Singapore, South Africa, the United Kingdom, the United States.

Please keep in mind also that none of the information in this guide constitutes legal advice. We are not legal experts in any capacity, and if you choose to trade binary options or offer them to the public, you do so entirely at your own risk. We are not liable for any losses or legal consequences you may incur.

The information on this article was last updated on July 23, 2020.

Australia

Trading binary options is legal in Australia, though the Australian government does caution traders to be wary of investments.

The relevant financial regulatory body in Australia is the Australian Securities & Investments Commission (ASIC). ASIC maintains a publication called “Money Smart,” where they have published a brief for consumers on binary options.

The article makes it quite clear that it is fully legal for Australian citizens to invest in binary options. The guide does state the following:

Make sure the binary option provider has an Australian financial services (AFS) licence or is authorised by an AFS licensee, regulated by ASIC. To see if a company holds an AFS licence, search ASIC’s Professional registers.

This seems to be a strong suggestion, rather than a legal stipulation, but just to be safe, you should probably follow ASIC’s recommendations.

Looking toward the future, however, it is possible that ASIC will decide to put a ban on binary options. In a June 26, 2020, media release, ASIC announced that it is deciding whether to take product intervention measures against binary options and CFDs, similar to those in Europe. The public is allowed to provide input on the proposed measures by August 7, 2020, after which ASIC will reach a regulatory decision. This decision will be published in September 2020.

Best Practice: Australia urges consumers to think twice before investing in binary options, but takes a relatively liberal stance toward them. You can legally trade binary options if you are an Australian citizen, but you should stick with those that are regulated by ASIC or have an AFS license. You should also keep a close eye on the news, as binary options trading may soon be banned in Australia.

Belgium

This is a country where trading binary options is illegal. As of August 2020, the Financial Services and Markets Authority (FSMA) in Belgium banned all binary options brokers from doing business with Belgium citizens.

As of the start of 2020, the FSMA has reported that it has been receiving more and more complaints from consumers regarding binary options as well as other “financial products and services.” In total, 792 messages were received last year. This accounted for almost half of all the complaints which the FSMA received, and represents an increase in 45% versus the volume of complaints for 2020. FSMA also continues to add new companies to its list of untrustworthy binary options and cryptocurrency brokers.

There will not be any regulatory changes since binary options are banned in Belgium already. But this does mean we shouldn’t expect the FSMA to reverse that decision anytime soon. It also has broad relevance to the increasing awareness of binary options scams around the world.

Best Practice: Binary options trading is banned in Belgium altogether. Do not trade binary options as a resident of Belgium.

Canada

The Canadian government has never been fond of binary options, despite the popularity of binary options in Canada.

The main regulatory body in Canada in charge of handling binary options concerns is the Canadian Securities Administrators (CSA).

Over the past few years, Canada has moved to restrict binary options trading progressively more and more. It started with an investor alert in 2020, which originally urged traders to “exercise caution when considering an investment in binary options.”

There are no registered individuals or firms permitted to trade binary options products in Canada.

This was followed by a ban which went into effect in December 2020.

Best Practice: If you are a Canadian citizen, do not trade binary options.

Cyprus

In Cyprus, binary options brokers are regulated by the Cyprus Securities and Exchange Commission (CySEC). The CySEC is notoriously loose about its regulatory criteria, which is why most binary options brokers seeking regulation choose to go through the CySEC.

Historically, The CySEC was notoriously lax with regulatory criteria, which is why most binary options brokers seeking regulation chose to go through the CySEC.

All of that has changed now. The CySEC started to talk about tightening up regulations on binary options trading in February 2020. That same month, they imposed a rule requiring brokers regulated through The CySEC to inform them if they were offering their services to clients outside the European Union.

All of that became irrelevant later, as Cyprus is a member of the European Union, and the ESMA has passed a ban (see the relevant section below) on binary options trading. That applies to Cyprus.

The CySEC sent out a circular on June 4, 2020, addressed to Cyprus Investment Firms. The circular (#C271) concerns the ESMA product intervention decision on binary options which goes into effect on July 2, 2020. As you likely are aware, this “intervention” amounts to a ban on binary options.

The circular clarifies that the geographic location of the client is irrelevant where the new regulations are concerned. Here is the exact statement:

CySEC has escalated the issue to ESMA who have confirmed that the application of the product intervention powers under Article 40 of MiFIR are not limited to clients who are based within the EEA. ESMA explained that the MiFID II/MiFIR regime does not discriminate on the basis of the location of clients, but rather it applies to services provided by investment firms which are authorized in the EEA.

Since then, there have been more changes in CySEC and throughout Europe with regards to binary options.

ESMA will no longer be renewing its temporary product intervention measures, but CySEC will not return to allowing binary options trading. On July 10, 2020, it announced its own permanent ban on binary options:

The Cyprus Securities and Exchange Commission has issued a directive banning binary options following instructions by the European Securities and Markets Authority (ESMA).

Best Practice: Under the new regulations, you may no longer trade binary options legally in Cyprus.

France

In 2020, the regulatory body Autorité des Marchés Financiers (AMF) implemented a ban on advertising of all binary options, Forex and CFD products which included leverage at levels of 1:20 and up. Note that this was a partial ban.

Since then, AMF has continued to take aggressive action, going so far as blocking advertisements of binary options products to French consumers.

The AMF also continues to meet regularly with the High Court of Paris to take action against websites which are illegally offering binary trading services to French citizens. Earlier this month, the regulator put out a new press release (in French) which summarizes the success of its efforts. The regulator reports that over a period of three years beginning after 2020, 138 illegal sites were blocked. As of May 2020, there are 445 firms in total on the blacklist.

France is a member nation of the European Union, so under the ESMA’s temporary product intervention measures, citizens of France were not allowed to trade binary options at all.

With those measures now at an end, the AMF decided to adopt national intervention measures. The notice states:

Following a public consultation conducted in spring 2020, the AMF has decided to take over the ban on the marketing, distribution and sale of binary options to retail investors, in France or from France.

Best Practice: Do not trade binary options in France, as they are banned.

Israel

Israel used to be the center of the binary options universe. It was such a big industry in Tel Aviv that thousands of people relied on it for their income. Unfortunately, it was scam central as well.

The Israeli parliament passed a ban in October 2020, forbidding Israeli brokers from doing business with customers overseas. This was the final nail in the coffin because Israeli brokers have been banned from doing business with Israeli customers since the prior spring.

A push was made to appeal the ban to the Supreme Court, which affirmed parliament’s decision. The ban on binary options in Israel has been in effect since January 26, 2020. With scandals continuing to be exposed in Israel and around the globe, it is unlikely this policy will be reversed anytime soon.

Indeed, there has been a string of raids and arrests. You can read about the FBI’s raid of SpotOption in Tel Aviv, and learn about the indictment of Lee Elbaz. You can also read about the mass arrest in the Philippines, which included 8 Israelis.

Best Practice: Do not trade binary options if you are Israeli.

Japan

In Japan, the regulatory body which is responsible for addressing binary options is the Financial Futures Association of Japan (FFAJ).

Japan has not placed any sort of ban on binary options trading, though it does have a lengthy document stipulating the rules for binary options transactions with Japanese customers. For example:

  • Binary options trades should never be shorter than 2 hours in length.
  • Pricing and payout information should be transparent.
  • Clients should be assessed before they are offered services.

If you are a resident of Japan and you want to trade binary options, you should go over this document (FFAJ Guidelines for OTC Binary Options Transactions) to make sure that you are dealing with a broker that is following the rules.

Best Practice: You may trade binary options in Japan, but you need to make sure that you are doing business only with companies which observe the guidelines set by the FFAJ.

Malaysia

The regulatory body you should familiarize yourself with in Malaysia is the Bank Negara Malaysia, which is the central bank of Malaysia.

The Bank Negara Malaysia seems to have very little to say regarding binary options at all. If you run a search on the official site, very little comes up.

One article is the one on illegal Forex trading. Here is one passage:

Illegal Foreign Exchange Trading Scheme refers to the buying or selling of foreign currency by an individual or company in Malaysia with any person who is not a licensed onshore bank or any person who has not obtained the approval of Bank Negara Malaysia.

From this statement, it seems reasonable to assume that one should trade with caution in Malaysia, dealing only with licensed companies.

Best Practice: Before you trade binary options in Malaysia, run a search on the company you are thinking of using to see whether they have obtained the central bank’s approval.

Malta

Binary options trading is currently banned in Malta, but a little discussion of Malta’s past involvement in the binary options industry is of interest.

Originally, binary options in Malta were categorized as gaming products. But in 2020, the Malta Financial Services Authority (MFSA) announced that binary options would henceforth be categorized as investment products subject to Markets in Financial Instruments Directive, 2004/39/EC, (MiFID) rules.

As with the CySEC in Cyprus, the MFSA used to license binary options websites in Malta.

When ESMA’s temporary product intervention measures went into effect, binary options trading was banned in Malta since Malta fell under the ESMA’s jurisdiction as a member nation of the EU.

While the ESMA has abandoned its temporary product intervention measures, it has done so because so many member nations are adopting product intervention measures of their own.

As expressed by the title, this document described MFSA’s proposed national product intervention measures against binary options trading and requested feedback.

If you read through the responses from MFSA to industry comments, it is clear that the regulator plans to go forward with a permanent ban on binary options in the country.

Best Practice: If you are a citizen of Malta, you cannot trade binary options.

Netherlands

Even before the new ESMA rules, binary options trading in the Netherlands was essentially banned. The relevant announcement was made on September 16, 2020, by Minister of Finance Jeroen Dijsselbloem while taking questions from Parliament. Dijsselbloem said during the session that he would be partnering with the Netherlands Authority for the Financial Markets (AFM) to set up an advertising ban on binary options.

Merel van Vroonhoven, chair of the AFM Executive Board, stated:

We consider it very important to introduce an advertising ban on binary options and other toxic investment products. Advertising for these investments entices consumers with the prospect of earning money fast, but it is actually the case that you can easily lose all of the money you have put in.

Under the ESMA’s rules, the ban on binary options trading in the Netherlands became total.

Now, following the dissolution of the temporary product intervention measures from the ESMA, it should come as no surprise that the Netherlands is pursuing a permanent ban on binary options as well. You can read more about that in this document titled ESMA OPINION UNDER ARTICLE 43(2) MIFIR (AFM_BO).

Best Practice: Do not trade binary options in the Netherlands.

Russia

Russia is one of the more unusual and ambiguous cases when it comes to binary options regulation. Until very recently, the country took next to no interest in regulating binary options at all. This is one of the reasons binary options products are so popular in Russia.

The Bank of Russia is the authority which is responsible for deciding what to do — or not do — regarding the regulations of binary options in Russia.

Recently, the Bank of Russia has started to look into possibilities for regulation. Financial One even mentioned first deputy chairman Sergey Shvetsov promising “that in the near future, binary options and CFDs will be banned for sale to unqualified investors.”

Thankfully, as of May 2020, an actual official statement was released in the central bank’s Annual Report for 2020. This report discusses a called, “Amendments to the Federal Law on Securities and Other Legislative Acts of the Russian Federation.”

Under this bill, binary options would be regulated as a gambling product. There are not a lot of details available yet on exactly how this would play out, but essentially binary options would be legal, but only within a gambling context.

This seems like quite a sensible response to the entire controversy surrounding binary options. The product itself is not the cause of severe monetary losses for consumers so much as the false advertising which has been used to market it. If Russian consumers see binary options products marketed solely as gambling products, they can make informed decisions about how to responsibly manage their funds.

Best Practice: If you are a Russian citizen, you are free to trade binary options anywhere you want at this point in time. In the future, it is likely that binary options will be regulated as a gambling product. Just make sure you do your homework and pick a trustworthy broker that is not going to scam you.

Singapore

The relevant regulatory body in Singapore, when it comes to binary options, is the Monetary Authority of Singapore (MAS). On the whole, the MAS has been very lax about binary options.

In March 2020, the MAS issued a warning to investors concerning binary options trading, specifically on platforms which are unregulated. This warning was released in response to complaints received by the MAS.

In May 2020, the MAS has published a warning in conjunction with the Singapore Police Force regarding unregulated trading platforms. According to the warning, the Commercial Affairs Department (CAD) of the Singapore police Force received 40 complaints from consumers in 2020 who lost money trading on platforms online which were unlicensed. In 2020, there were 142 complaints, which represents a major jump. In total, the losses for 2020 added up to S$7.8 million.

The complaints in question concerned not only binary options platforms, but also platforms for Forex, commodities, shares, and other assets. MAS would like to remind citizens to check the Financial Institutions Directory, Register of Representatives, and Investor Alert List on their official site before doing business with any online broker.

If you believe you have been scammed by an unlicensed broker or you want to report a company you suspect of fraud, you can submit your report at Police page.

Best Practice: As advised by the MAS in the linked notice, Singapore citizens should only trade with binary options brokers that are regulated and listed in the MAS Financial Institutions Directory. Citizens should also avoid those which are listed in the MAS Investor Alert List.

South Africa

In South Africa, the agency in charge of financial regulation is the Financial Services Board (FSB). From what is known at this point, the FSB is not particularly involved with binary options and does not currently regulate any binary options brokers.

The FSB does routinely issue warnings to the public about doing business with various binary brokers. For example, FSB warned traders against Binary Tilt in September 2020.

The FSB usually concludes these warnings by reminding the public that one should always look up a broker with the FSB to check whether they are “authorized to render financial services.”

As such, it seems the FSB would prefer that traders in South Africa only do business with companies regulated by the FSB. But it can also be inferred from these specific blacklist warnings that the FSB has not instituted a complete ban on binary options trading.

Best Practice: The FSB’s position on binary options is extremely vague. It appears you can legally trade if you are a citizen of South Africa, but you should exercise caution.

United Kingdom

Binary options are presently banned in the United Kingdom under ESMA rules. But a discussion of binary options in the UK requires more depth, especially since the situation has changed dramattically on March 29, 2020.

In the United Kingdom, the Gambling Commission used to be in charge of regulating binary options brokers. This applied exclusively to brokers with remote gambling equipment located within Great Britain.

Under the Gambling Commission, consumers in Britain were able to use the services of domestic and overseas binary options sites.

That meant even brokers that were not regulated by the Gambling Commission could legally offer services to UK customers.

All of that changed on January 3, 2020. The authority to regulate binary options passed from the Gambling Commission to the Financial Conduct Authority (FCA) through an amendment. Binary options switched from being regulated as a gambling product to being regulated as an investment product.

The Gambling Commission retained its database of license holders as well as its guide to binary trading.

All firms trading in binary options need to be authorized by us. Below is a list of firms without authorization that we understand are offering binary options trading to UK consumers.

That was another change. It meant that regardless of location, all binary options companies needed to be regulated by the FCA for UK customers to use them. While that did not imply that it was a crime for UK citizens to trade with unauthorized companies, it did imply that it was a crime for those companies to operate in the UK without FCA approval.

Like the Gambling Commission, the FCA maintained a general information page on binary options. It also maintains the FCA Register of Financial Service Firms. There is a list of unauthorized binary options firms as well as a page where consumers can view recent warnings.

The UK is still a member of the European Union, but you likely know that the Brexit completion is presently scheduled for 23:00 GMT on October 31, 2020.

This previously raised a lot of questions about what the UK was intending to do about binary options after leaving the European Union. But there have been a couple of developments since then which have answered those questions. For one thing, the ESMA is no longer maintaining separate product intervention measures against binary options.

For another, the FCA decided on its own to maintain a permanent ban on the sale of binary options to retail consumers:

Following consultation feedback, the Financial Conduct Authority (FCA) is today confirming all firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail consumers.

That notice was published in March 2020, and the ban went into effect on April 2, 2020.

Best Practice: Do not trade binary options in the UK, where they have been banned by the FCA permanently.

United States

In the United States, the Commodity Futures Trading Commission (CFTC) is in charge of regulating futures, swaps, and other financial markets.

The CFTC is notoriously rigid in its stance toward binary options trading. Ironically however, the US is now one of the few countries which has not passed a complete ban on binary options trading. Then again, this is the upside of tight regulation. It prevents the kind of rampant corruption which would require a ban.

Here is what the CFTC has said about binary options:

It is against the law to solicit U.S. persons to buy and sell commodity options, even if they are called ‘prediction’ contracts, unless they are listed for trading and traded on a exchange or unless legally exempt.

It is difficult to interpret this, but it should be noted that the key word here may be “solicit.” Basically, it is against the law for brokers to deal with USA customers unless they are approved by the CFTC. The CFTC regularly penalizes companies that break this rule quite harshly.

The CFTC also maintains the Fraud Advisories page for consumers. The main idea of the advisory is summarized in the following paragraph:

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.

This does not actually state that trading with an unregulated broker is illegal. It essentially implies, “let the buyer beware.”

The CFTC does suggest that US traders take the following steps before trading binary options:

  1. See if the platform is registered with the SEC.
  2. Make sure the platform is an actual exchange.
  3. Find out whether the platform is a designated contract market.
  4. Use the BASIC database provided by the National Futures Association (NFA) as well as FINRA’s BrokerCheck to verify the status of a broker.

Right now, very few brokers are registered with the CFTC. The main one is the North American Derivatives Exchange (NADEX).

The CFTC makes ongoing efforts to add untrustworthy brokers to its RED List.

Many recent headlines surrounding arrests and indictments has focused on US cases. For example:

  • The CFTC has charged a resident of Colorado named Dillon Michael Dean with swindling customers in a Bitcoin and binary options scheme to the tune of $1.1 million. The CFTC is attempting to penalize Dean $1,497,792.12. Dean however has gone missing. He took the time to pack his possessions and clear them out of his residence, but he has not turned up since. It would seem he is on the run.
  • In July of 2020, the CFTC filed a complaint with the United States District Court Middle District of Florida in Jacksonville against Jason Scharf and A&J Media Partners, Inc. in conjunction with a binary options scam called “Millionaire Money Machine.” Now, Finance Feeds reports that the court has sided with the CFTC, and will be issuing an Order of Permanent Injunction and Other Statutory and Equitable Relief against the accused.
  • In April 2020, the CFTC has decided to take an additional step to educate the public about the widespread scams, which have plagued the binary options industry, by releasing a video titled The Truth Behind Binary Options Fraud.

This was followed up by a series of videos that further expounded upon the same topic. Titles in the series include A Silvery Slope: Bob’s Story, True Fraud Stories: Binary Options Fraud Ep. 1, and True Fraud Stories: Binary Options Fraud Ep. 2.

All of the videos are available to watch at the CFTC SmartCheck Videos section.

Erica Elliott Richardson, CFTC Director of Public Affairs, does well summarizing the situation:

Binary options can be helpful hedging tools for some traders, but there are only a few entities that can legitimately do business with individual investors in the U.S. These videos serve as a call to investors to check the registration of the company they are trusting with their money.

Indeed, this is one of the fairer assessments that you may read from a financial regulator on the subject of binary options. Binary options can be legitimate tools, and they can be used profitably — but right now there is a lot of dross out there, and consumers need to be very careful.

We can only hope that after the scammers are dealt with, binary options as a legitimate investment vehicle will receive more positive press, and it will be easier for consumers to find trustworthy brokers to work with.

Best Practice: If you are a US resident, you are best off trading with a broker which is operating legally. That means a broker like NADEX.

General Factors

Google and Facebook

In February 2020, Facebook announced that it would stop running ads for binary options, ICO products, and cryptocurrencies. This decision was made at the urging of Canadian and US authorities.

On March 14, 2020, Google followed suit. Scott Spencer, the Director of Sustainable Ads at Google posted a notice titled An advertising ecosystem that works for everyone.

If you scroll down near the bottom of the document to the heading “New policies to tackle emerging threats,” you can read the following statement:

This year, we updated several policies to address ads in unregulated or speculative financial products like binary options, cryptocurrency, foreign exchange markets and contracts for difference (or CFDs).

If you click through to the link above, it takes you to an article titled Financial Services: New restricted financial products policy (June 2020). Here the company is much more explicit about its intentions, stating:

In addition, ads for the following will no longer be allowed to serve: Binary options and synonymous products.

This applies to aggregators and affiliates as well.

Google Play also introduced a new binary options policy which states simply:

We do not allow apps that provide users with the ability to trade binary options.

Essentially this comes down to a full ban on the part of Google against binary options.

Now, we need to circle back around to Facebook. Just a few months later in June 2020, Facebook decided to reverse its ban on the cryptocurrency advertisements. So far, there is no indication that they will be extending that reprieve to binary options or ICO ads, which remain banned.

Summary: Advertising binary options is currently banned on both Google and Facebook.

MiFID II

A sweeping change came to the financial markets in Europe as of January 3, 2020: MiFID II.

In case you are not familiar with MiFID, it stands for “Markets in Financial Instruments Directive.” MiFID went into effect in 2007, and applies across the entire European Union. It is a regulatory framework which helps to reduce abuses in European financial markets while setting authorization requirements and boosting transparency.

MiFID II is a revision to the original MiFID, and will seek to provide even more transparency in the markets.

The impact that this new regulatory framework will have on the binary options industry was complex from the off. For example, a lot of binary options brokers immediately threw out match deposit bonuses with high turnover requirements in order to conform to the new rules.

ESMA Ban

Finally, let’s summarize the history of ESMA regulation concerning binary options.

Rumors that the European Securities and Markets Authority (ESMA) might ban binary options first cropped up in 2020, followed by an official announcement from ESMA in December of that year.

In January 2020, ESMA opened consultation on the new set of rules they were proposing. During the consultation period, ESMA accepted comments from the public.

In April 2020, ESMA announced that they would proceed with the complete ban of binary options trading. This is the same ban which has been mentioned in many of the sections above for European countries. Under the ban, companies were forbidden from engaging in the marketing, distribution or sale of binary options to retail customers throughout the EU.

Factors cited include:

  • Poor transparency
  • “Structural expected negative return”
  • Differences between the returns that are expected and the risk of loss, which tends to be significantly higher
  • Marketing and distribution concerns
  • Conflicts of interest (most brokers profit when their traders lose, and vice versa)

According to the ESMA, around 74–89% of retail investors end up in the red, typically anywhere from €1,600 to €29,000. The ESMA Chair Steven Maijoor states:

The combination of the promise of high returns, digital platforms, in an environment of historical low interest rates has created an offer that appeals to retail investors. However, the inherent complexity of the products and their excessive leverage – in the case of CFDs – has resulted in significant losses for retail investors.

In June 2020, the ESMA has put out a press release stating that they have adopted the final product intervention measures on CFDs and binary options.

In the press release, ESMA states:

…the measures have been published in the Official Journal of the European Union (OJ) today. They will start to apply from 2 July 2020 for binary options and from 1 August 2020 for CFDs.

The wording for the binary options ban is as follows:

Binary Options (from 2 July 2020) — a prohibition on the marketing, distribution or sale of binary options to retail investors.

The ban was temporary in nature, with the option to renew at the end of a timeframe. The ESMA then began a period of successive renewals of the temporary prohibition on binary options every three months.

That practice came to an end on July 1, 2020. On that date, the ESMA published a notice titled ESMA CEASES RENEWAL OF PRODUCT INTERVENTION MEASURE RELATING TO BINARY OPTIONS.

The notice explained:

As most national competent authorities (NCAs) have taken permanent national product intervention measures relating to binary options that are at least as stringent as ESMA’s measure, ESMA will not renew its temporary prohibition.

The notice also added that the ESMA will “continue to monitor activities in relation to these and other related speculative products to determine whether any other measures may be needed.”

Summary: The ESMA is done with temporary product intervention measures against binary options, but only because most member nations are adopting permanent bans against binary options.

Q: Can I get around my country’s ban on binary options?

A: It can be frustrating to find out you live in a country, which has completely banned binary options. This may make you wonder if you can just use a VPN to access an offshore broker and make a deposit.

While this may seem tempting, you should not do it. First of all, at some point (probably when you withdraw), the broker will require you to verify your identity. At that point, you will be unable to complete the process. You might lose your investment, and/or get banned from the platform.

Secondly, you could be reported to your country’s authorities, and might incur a penalty as a result.

Q: How do I know a regulator is legit?

A: Sometimes while you are researching binary options brokers, you might stumble across “regulators” that do not appear to have any financial authority. This may leave you feeling a little confused.

One example is the Financial Market Relations Regulation Center (FMRRC) in Russia. On first glance, this might sound like a real regulatory body. But if you look a bit closer, you will discover it is not one.

The FMRRC is an independent organization. It was put together to provide certifications to binary options brokers in Russia since the Central Bank of Russia does not provide any sort of legal regulatory status. In fact, it was actually a broker that started the organization.

To that end, the FMRRC has no legal authority. It is not a real regulator. It does offer oversight, but it is hardly unbiased, and the interests of brokers are the overriding concern, not the interests of consumers.

It is totally up to you if you want to take certifications like those offered by FMRRC seriously. Just remember that membership in an organization like this does not represent real regulatory status.

Real regulatory bodies are always either government entities or independent organizations that work closely with government authorities to provide fair, oversight.

Q: What if my country’s stance on binary options is unclear?

A: You should never take any chances. In a lot of countries, binary options exists in a legal gray area. If you are unsure if what you are doing is legal or not, always call the financial regulatory agency in your country and ask directly.

Q: Is binary options trading dead?

A: Not necessarily. The industry as we knew it is certainly coming to an end, but that does not mean that binary options trading will remain banned in so many countries forever. After this period of upheaval, it is possible that a few legitimate brokers will emerge with licenses to do business with serious customers. Policies are always up for reconsideration. Hopefully the next incarnation of this industry will be a more honest one.

Q: I cannot trade binary options in my country anymore! What do I do?

A: If you are unable to trade binary options in your country, that does not mean that you cannot profit by investing in stocks, currencies, commodities, or indices. It simply means that you need to invest in these assets through different platforms (e.g., Forex brokers). As other platforms tend to offer more in the way of tools and control, you may find that you are happier and more profitable by doing so anyway.

The Bottom Line: This Is a Tough Time for Trading Binary Options

With the temporary product intervention measures of the ESMA behind us and more and more countries passing permanent bans on binary options trading, we find ourselves in a challenging new era for the industry.

Nonetheless, binary options trading is not banned universally around the globe. If you are in a country where it is still legal, you can still participate, but you should play it safe and use a regulated broker. If in doubt, always contact your country’s financial regulatory authority and ask questions before you engage in new investments.

If binary options trading is no longer allowed in your country, consider trying other forms of investing instead. Many of the skills you developed as a binary options trader should translate easily to other forms of trading.

Good luck, follow your country’s laws, and stay safe.

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