A fine of $ 11 million has been imposed on the Banc de Binary binary options broker

fine cftc banc de binary

Binary options frauds and scams are more and more  prominent and this is no surprise; the recent AMF report shows that in the last 6 years, complaints of binary options fraud have been multiplied by 26! In order to fight against the fraudulent behavior of binary options brokers, financial regulators issue quite regularly blacklists of binary options brokers as well as warnings and in some cases they do not hesitate to hit the wallets of brokers by imposing fines on them. This is what has just happened to the Banc de Binary which has received an incredible fine of several million dollars.

The eight-digit fine imposed on Banc de Binary

The Wall Street Journal has recently published a news article in which it evoked that a fine of several million dollars would have been imposed against the Banc de Binary binary options broker by the US financial authorities, which are the CFTC (US Commodity Futures Trading Commission) and the SEC (US Securities and Exchange Commission). The Wall Street Journal refers to a significant fine in the amount of $ 11 million. The US financial authorities blame the Banc de Binary broker for soliciting US individuals in order to lure them to open a trading account with this broker. The facts date back to 2011, 2012 and 2013 when the Banc de Binary broker was in no circumstances authorized to recruit an American clientele. At the time, the English version of the Banc de Binary website that was aimed to target US customers displayed in the general conditions that the Banc de Binary broker had its office in New York City, more specifically in the “Trump Tower”. Given these illegal practices, the US financial authorities have decided to financially penalize the Banc de Binary broker. This latter will pay the sum of $ 7.1M to restore the profits that have been illegally earned, $ 2M as civil penalties to the CFTC and $ 1.95M to the SEC. The fine thus amounts to $ 11 million and out of that sum, $ 9M will be used to repay the losses of US traders (numbering 6,600) who have been registered with Banc de Binary during the period.

The Banc de Binary broker in a few words

Banc de Binary is a binary options broker that was founded in 2009 under a platform signed by the SpotOption developer. Banc de Binary was one of the first brokers to obtain the license of the CySEC (license 188/13 issued on 01/07/2013) then that of the FCA (United Kingdom). The return on investment per binary option varies with this broker and ranges between 70% and 85%. It offers more than a hundred tradable assets and at first glance, it appeared to be a serious broker that seemed to conquer the European market. However, several financial regulators have repeatedly fined Banc de Binary for its non-compliance with their respective financial regulations. But, the most remarkable fine is undoubtedly the one imposed by the US authorities CFTC and SEC that is the subject of our article.

Is Banc de Binary a bad broker?

Although the Banc de Binary binary options broker is one of the oldest brokers in the trading industry, it does not mean that it is one of the most serious ones … Banc de Binary is one of the first brokers to have received the license of the CySEC financial regulator as a binary options broker. Although it has accumulated thousands of clients during these few years of activity, a large portion of them have complained of having lost money and sometimes having been cheated. Moreover, we have the same feeling at BonusBinaryOptions.net since many traders and readers of our blog have also complained about the Banc de Binary. Thus, certain virulent criticisms about the Banc de Binary invite us to advise you to visit our “best binary options brokers” page that has been carefully selected by the BonusBinaryOptions.net team among the brokers with the best reputation. Please also note that choosing an authorized broker that we recommend to you will allow you to be protected by the financial regulators in case any problems are encountered during your trading experience. In addition, it will especially enable you to benefit from the privileged relationships that we maintain with the brokers (see: BonusBinaryOptions.net Guarantee).

Choosing a regulated binary options broker

When you become a trader with a regulated binary options broker, you protect yourself against the potential risks of fraud that could one day or another occur with a broker since you will be protected by the financial regulators in your country in the event of such a situation. The regulated binary options brokers are brokers whose activities have been endorsed by the competent financial authorities. A broker such as 24Option is regulated by a dozen European financial authorities; this means that it has successfully passed the exams of regulators like the CySEC and obtained a license which authorizes it to legally provide its services. Please further note that if you join a regulated binary options broker through one of the links on our website, you will receive a 100% negotiated bonus on deposit which normally does not exist elsewhere. To evoke the example of the previously-mentioned 24Option broker, opening a 24Option account will give you the right to an exclusive 100% bonus on deposit, whereas normally the bonus on deposit proposed for new traders by this broker is about 25% of the amount deposited on the trading account.

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