In a statement dated June 6, 2013, the CFTC announced that it has filed a civil complaint against Banc de Binary for illegally practicing as an intermediary within the financial markets.
Created by the U.S. Congress in 1974, the CFTC (Commodity Futures Trading Commission) is an agency that is responsible for monitoring and regulating the companies that offer services within the financial markets, like Forex brokers for example.
After 2 years of investigation with Banc de Binary, the CFTC reproached it for having offered to clients residing in the United States the opportunity to invest within the financial markets through its website for the online trading of binary options. Thus, in the United States this is totally illegal without permission.
Currently, the CFTC only authorizes very rarely the possibility for companies to offer the purchase or sale of binary options. Forex trading and CFDs on Futures are the only ones authorized.
This is why the CFTC has filed a complaint in order to convict Banc de Binary for outright prohibition to exercise its activity of binary options trading in the U.S. and incidentally impose a very heavy fine.
It is in these concrete cases that we realize that all regulations are not the same. To recapitulate, the CySEC is a Cypriot regulations authority and the MiFID is a European regulations authority. Each country has its own regulation and therefore its own conditions.
The CFTC is among the strictest regulations in the financial markets and David Meister, the Director of the Application Division of the CFTC, sets the tone clearly.
“If a financial investment intermediary wishes to offer its services on U.S. soil, it must then do so within the strict conditions imposed by the CFTC from its specifications and thus obtain its permission. The opposite case thereof is exposed to consequences and severe sanctions”.
For example, the CFTC requires brokers to ask their clients for their knowledge level of the financial markets before allowing them the possibility to invest. If the client does not have the necessary knowledge, s/he may thus invest in a well-defined and limited scope.
This point is also reproached by the CFTC to Banc de Binary, which has never conducted it and authorizes beginners to sometimes invest considerable sums without any knowledge of the financial markets.
Following this investigation with the Banc de Binary and after having received numerous complaints from clients adversely affected by binary options brokers, the CFTC launches an alert on its website. The CFTC notably denounces the fraudulent practices of some brokers. For example, these practices are the inability to withdraw one’s capital and / or earnings.
On Banc de Binary, there are also many clients’ comments denouncing these practices on different forums. Banc de Binary often refuses to return to you your money.
But scams go even further because the CFTC also accuses some brokers of manipulating the software to create losing trades and commit identity theft.
However, you should not place all brokers in the same category; before choosing your broker, we advise you to read our comparative chart of the binary options brokers, including the comments of different clients. Do not hesitate to provide your review of your broker; this is the only way to differentiate between the good and bad brokers.
At present, and in view of the complaint filed by the CFTC against Banc de Binary, we can not recommend this binary options broker to you and we encourage you to turn to brokers with the best reputation. Check out notably our TOP 5 brokers that we believe to be serious. This comparative chart has been established thanks to the good reputation of these brokers on forums and through a combination of quality criteria that we were able to compare on your behalf (guaranteed withdrawals, …).
Also note that by registering an account with a broker from our link, you can take advantage of the bonusoptionsbinaires.net guarantee. Thus, our team is committed to helping you resolve any potential conflict with the online broker. If you encounter any difficulties with the broker, contact us via the “contact” section. We are committed to providing you with an answer within 24 hours. All the conflicts that we have handled were resolved!