A Letter from a Binary Options Trader
- It's time to take control of our industry and stop letting a few bad apples spoil the bunch.
We’ve heard many stories about binary options, from news reporters, financial bloggers, regulators, scam victims, technology providers and brand owners. This time I’m happy to bring you readers something new, a different angle on binary options.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong.
Here’s someone whose opinion you forgot to ask for, a regular trader, just someone who wants to trade without fear. “Trader Joe” has a live account with one of the biggest binary brands and he’s an active member of our community. This is a letter from a real trader.
Traders want better binary options Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term
We, the traders, want better regulation! Yes, there are actual traders, smart investors, who want to trade binary options and didn’t get sucked into the trading world because of a fishy advertisement they saw somewhere, traders who don't expect to get rich overnight and who would simply laugh at the idea that an auto-trader could make them money without any effort.
Parallel to this world of scam brokers, scam signal services, trading gurus, fake regulators and regulators who just don’t care or focus on the wrong things, there is a community of real traders who recognize an opportunity to have a good time and to possibly make some money.
Some of us enjoy binary trading and simply want a safe, regulated environment to trade in which we can trust the brokers, the brokers aren't afraid of the regulators, the general public is safe and the traders are happy.
Bad regulation is hurting the binary options community
Bad regulation is hurting the binary options community and it’s been doing so as far as we, the community of traders, can remember. Ever since binary options became popular, con-men and fraudsters skillfully adapted their methods to include them, taking advantage of potential traders with little or no hindrance from regulators or anyone else. From scam autotraders to scam brokers and fake anti-scam websites, we, the legitimate trading community, have seen it all, thanks to the dilatory reaction from authorities.
At least now there is a movement among regulators in Europe to better control the scams and con artists but the problem now is that many (will probably) take regulation too far.
The real problem is twofold. A lack of global regulatory organization and also because binary options was for a long time considered a 'victim-free' industry. How can it be victim-free when people get scammed?
Because not everyone who gets scammed runs to their local police station to make a complaint, and those that do, find out that there is nothing the local authority can do about a rogue website offering binary options get-rich-quick schemes. What it will really take is an international effort and cooperation among the many different regulators, and forms of binary options trading. With that said, I suppose it’s time for all of us traders, as a community, to demand better regulations worldwide!
It’s fun but infested with scams!
Binary options are fun! No doubt there, whether you just want to play around and try your luck in the market or if you are a serious trader, there are fun times to be had trading binary options. You can just trade on your hunch or what your friends think, or spend some time learning technical and fundamental analysis like a professional investor. For the latter group, it is possible to grow your account and earn money but it takes time and dedication, for the former, you might earn some money but you will for sure have a good time and you will definitely learn things about the world, the market and yourself!
Unfortunately, far from everyone is a serious investor and the demand for making quick and effortless cash invites scammers to create and promote too-good-to-be-true offers that are always scams.
How does bad regulation open the door for crooked brokers?
First and foremost, I have to admit that the regulators worldwide have been tougher when it comes to binary options and firms claiming to offer services for traders. Their effectiveness however can be criticized. In some countries, binary options are outright banned which means that even offshore regulated brokers that operate without any involvement with any scam get blocked, and the ones that are scams are often able to operate there anyway.
This isn’t necessarily the best approach because the bucket-shop firms that don’t care about running a serious business will continue their solicitation of clients, disregarding bans and laws. Another form of regulation that many authorities are implementing is demanding a license for any firm that offers financial services but again, the focus is more on making it hard for firms that are willing to operate legally than creating an environment where honest, open and fair binary options trading can take place.
I mean, we have legal casinos to keep gambling off the streets and out of the back rooms, we should have the same for binary options.
The binary options industry needs better regulation
The binary options industry needs better regulation, regulators need to cooperate and the industry and the regulators need to work together. By doing this, forming solid relationships within the community of traders, regulators and brokers, we can create a safe, regulated trading environment in which the traders are happy, legit brokers can stay in business and the general public is free from scams.
After all, eradicating binary options won't eradicate fraud or scams, the bad guys will just figure out another way to do it, and it will probably be much worse than what they do to people in the name of binary options. It's time to take control of our industry and stop letting a few bad apples spoil the bunch.
We’ve heard many stories about binary options, from news reporters, financial bloggers, regulators, scam victims, technology providers and brand owners. This time I’m happy to bring you readers something new, a different angle on binary options.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong.
Here’s someone whose opinion you forgot to ask for, a regular trader, just someone who wants to trade without fear. “Trader Joe” has a live account with one of the biggest binary brands and he’s an active member of our community. This is a letter from a real trader.
Traders want better binary options Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term
We, the traders, want better regulation! Yes, there are actual traders, smart investors, who want to trade binary options and didn’t get sucked into the trading world because of a fishy advertisement they saw somewhere, traders who don't expect to get rich overnight and who would simply laugh at the idea that an auto-trader could make them money without any effort.
Parallel to this world of scam brokers, scam signal services, trading gurus, fake regulators and regulators who just don’t care or focus on the wrong things, there is a community of real traders who recognize an opportunity to have a good time and to possibly make some money.
Some of us enjoy binary trading and simply want a safe, regulated environment to trade in which we can trust the brokers, the brokers aren't afraid of the regulators, the general public is safe and the traders are happy.
Bad regulation is hurting the binary options community
Bad regulation is hurting the binary options community and it’s been doing so as far as we, the community of traders, can remember. Ever since binary options became popular, con-men and fraudsters skillfully adapted their methods to include them, taking advantage of potential traders with little or no hindrance from regulators or anyone else. From scam autotraders to scam brokers and fake anti-scam websites, we, the legitimate trading community, have seen it all, thanks to the dilatory reaction from authorities.
At least now there is a movement among regulators in Europe to better control the scams and con artists but the problem now is that many (will probably) take regulation too far.
The real problem is twofold. A lack of global regulatory organization and also because binary options was for a long time considered a 'victim-free' industry. How can it be victim-free when people get scammed?
Because not everyone who gets scammed runs to their local police station to make a complaint, and those that do, find out that there is nothing the local authority can do about a rogue website offering binary options get-rich-quick schemes. What it will really take is an international effort and cooperation among the many different regulators, and forms of binary options trading. With that said, I suppose it’s time for all of us traders, as a community, to demand better regulations worldwide!
It’s fun but infested with scams!
Binary options are fun! No doubt there, whether you just want to play around and try your luck in the market or if you are a serious trader, there are fun times to be had trading binary options. You can just trade on your hunch or what your friends think, or spend some time learning technical and fundamental analysis like a professional investor. For the latter group, it is possible to grow your account and earn money but it takes time and dedication, for the former, you might earn some money but you will for sure have a good time and you will definitely learn things about the world, the market and yourself!
Unfortunately, far from everyone is a serious investor and the demand for making quick and effortless cash invites scammers to create and promote too-good-to-be-true offers that are always scams.
How does bad regulation open the door for crooked brokers?
First and foremost, I have to admit that the regulators worldwide have been tougher when it comes to binary options and firms claiming to offer services for traders. Their effectiveness however can be criticized. In some countries, binary options are outright banned which means that even offshore regulated brokers that operate without any involvement with any scam get blocked, and the ones that are scams are often able to operate there anyway.
This isn’t necessarily the best approach because the bucket-shop firms that don’t care about running a serious business will continue their solicitation of clients, disregarding bans and laws. Another form of regulation that many authorities are implementing is demanding a license for any firm that offers financial services but again, the focus is more on making it hard for firms that are willing to operate legally than creating an environment where honest, open and fair binary options trading can take place.
I mean, we have legal casinos to keep gambling off the streets and out of the back rooms, we should have the same for binary options.
The binary options industry needs better regulation
The binary options industry needs better regulation, regulators need to cooperate and the industry and the regulators need to work together. By doing this, forming solid relationships within the community of traders, regulators and brokers, we can create a safe, regulated trading environment in which the traders are happy, legit brokers can stay in business and the general public is free from scams.
After all, eradicating binary options won't eradicate fraud or scams, the bad guys will just figure out another way to do it, and it will probably be much worse than what they do to people in the name of binary options. It's time to take control of our industry and stop letting a few bad apples spoil the bunch.