Binary Options Con/Scam

This is a discussion on Binary Options Con/Scam within the Fixed Odds forums, part of the Commercial category; Do regulated brokers act as counterparties 100% yes There you go...so if you coampre this to tru exchnage which means ...

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Old Nov 1, 2012, 10:55am   #46
Joined Aug 2012
Re: Binary Options Con/Scam

Do regulated brokers act as counterparties 100% yes

There you go...so if you coampre this to tru exchnage which means exchnage makes sure that there is margin money up front and margin has no conflict of interest with any party
Better for the punter is it not?
"Sure banks fail and you get pennies on the dollar. Not sure how insurance works in those cases"
In US and Australia money in bank is protected by federal govt.
If in US broker fails ( as a corporate failure ) SIPC is there in AUstralia for ( equity holding only) ASX investor Gurantee fund i sthere and so in UK
If CYSEC broker fails ====?
We are not talking about regulated FX or Futures firms as they are not covered by above mentioned insurance
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Old Nov 1, 2012, 12:25pm   #47
Joined Jun 2012
Re: Binary Options Con/Scam

Quote:
Originally Posted by moka2 View Post
This is not about broker bashing but to highlight what kind of stupid risks come in to picture when such a product/ broker choses to run away from more established regulators..
"Regulations crap" is what you vetsed interest going to say all the time.. but none of you have addressed the addditional risk questions raised
SO Mr Stone and Mr Fielder why don;t you honestly answer some of the questions raised

Why shoudl anybody trust a small broker ina jursdictions where it is realtively easy to get a so called Broker Licence over a broker regulated in a large and established jurisdction.
Tray and do this in AUS without a proper licence and you will end up in Jail
and that is a win for consumer
I mean Binary looks attractive ye ssure get in to main market and 3earn respect first
Moka, you speak sense buddy. The answer to "why should you use a broker unregulated in an obscure territory" is you shouldn't... If they want to play with the big boys they should do the same as them and be clean... no weird false address which many do and no BS about why not being regulated is better than being regulated.

What ever you trade make sure it is with a regulated business in a decent location without pushy salesman that know nothing about the market and make sure they segregate client funds from the companies operating accounts.

There is another board in here whwere someone has posted a binary companies T&C's and it states they can use your money however they choose, when they choose to... scary.
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Old Nov 1, 2012, 4:46pm   #48
Joined Sep 2012
Re: Binary Options Con/Scam

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Originally Posted by safvan View Post
Absolute nonsense. No single party on the other side of the trade (should it really exist) is continuously going to risk such volatility.

There is NO central exchange for the majority of these unregulated brokers. They make the market period.

The only exception to this rule as you have uttered in your ramblings is the play of probability.

Bank gathers the fortunes from the pubic and runs its business till there is a bank run.

Binary options with 800% payouts will never be regulated by an authority with "regulated neurons" capable of thinking rationally unless they agree to the probability argument but that is still not discounting the fact that no central liquidity provision system exists for the majority of option gaming products.

So Mr Einstein of "How I became a Billionaire in 30 days" book, the mathematical weightage you are giving to the potential wins over losses in this scenario lies within the confines of the gambling products and not from money management risks overseen by regulated exchanges.

I am fine with these products advertised as gambling games with some edge given the customers. It needs to if customer retention is of some importance.

Oversell your childish Bull Sh**t to some one else.
Quote:
Originally Posted by moka2 View Post
Do regulated brokers act as counterparties 100% yes

There you go...so if you coampre this to tru exchnage which means exchnage makes sure that there is margin money up front and margin has no conflict of interest with any party
Better for the punter is it not?
"Sure banks fail and you get pennies on the dollar. Not sure how insurance works in those cases"
In US and Australia money in bank is protected by federal govt.
If in US broker fails ( as a corporate failure ) SIPC is there in AUstralia for ( equity holding only) ASX investor Gurantee fund i sthere and so in UK
If CYSEC broker fails ====?
We are not talking about regulated FX or Futures firms as they are not covered by above mentioned insurance
For the 1000th time
I DON"T CARE ABOUT STOCK TRADING
Binary options, forex, and other currently OTC products that are THEORETICALLY constructable/tradable via exchanges is the argument
How the hell can you comapre and unregulated broker in bianry options to NYSE????
They have nothing to do with each other

So the comparison is ONLY:
Do i try and construct a binary options strategy via VANILLA options on an exchange
OR
Trade with an unregulated brand?

Answer will overwhelmingly be the unregulated simply because 99.9% out there don't know how to trade proper vanillas

On to the next point, CYSEC:
CYSEC DOES have insurance. Up to 30k USD if I remember correctly
So stop it already. And this DOES cover forex companies

Learn the facts

I don't care about stocks - it's not an issue here as I am not arguing about that.
Forex/binaries = OTC vs non OTC forex/binaries
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Old Nov 1, 2012, 4:53pm   #49
Joined Jun 2012
Re: Binary Options Con/Scam

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Originally Posted by Mr Stone View Post
As I also put on there I move between the two locations as I have done for the last year or so. It's funny how we were not the "regulated" broker who scammed the guy and yet we are being branded by you online thugs as bad news and a bad broker to deal with.

Long story short, regulation sucks and guarantees you nothing. I guess I will c u next tuesday or whenever. For the meantime why dont you lot focus on the platform that actually did scam the poor guy above and try helping him out to recover the funds!!!
Nice clean city address Stone!!!

View image: GOtions
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Old Nov 2, 2012, 3:22am   #50
Joined Aug 2012
Re: Binary Options Con/Scam

Ok David lets talk speccifics apples to apples
"So the comparison is ONLY:
Do i try and construct a binary options strategy via VANILLA options on an exchange
OR
Trade with an unregulated brand?

Answer will overwhelmingly be the unregulated simply because 99.9% out there don't know how to trade proper vanillas"

I have already accepted that BO platform looks more attractive as campared to Using Binary option to construct a Binary from Exchnage traded Vanila
However your reason why unregulated BO is better just becasue of one above reason is not only convientely ignoring the many risk factors I mentioned and it is just irresposible
SO here for the 1000nd time ( apples to apples)

1) Ease of platform = BO better than Vanila Option platform.. OK I agree
2) Level of Safty of you funds : Exchange traded 10 times better
3)Transparancy of price = Exchange traded 10 times better
4) IS the underlying clearly defined and can the settlement price be verified independently = Exchange traded all positive, BO definiation of underlying can be confusing ( Look at IGs defination of an Index BO)
5) Are spreads and prices driven by 1 party or thousands: BO likely to be driven by the "Broker" , Exchange Traded = open to true market
6) Which model is likley to have conflict of interest : BO most likely ( unless they can hedge the exposure)
ETO/s are Novated by exchange
7) Flexibility: BO = Limited, ETO = thousands of combinations
8) Can you trade out of a loosing position: BO most likely NO it is a bet
9) Can you get MArgin advantage in cas e of say Covered calls, Cash Covered puts etc = BO NO way not even with somebody like IG weher in one account you can trade SPOT and a Binary

So here are specific point.. are you ready to prove them wrong with facts
It realy does not matter becasue your Mantra is known to all.. no matterwhat risks people point out you have vseted interest in promoting BO.. on the other hand I donlt have any financial intereste in mentionng ETOs
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Old Nov 2, 2012, 7:10am   #51
Joined Sep 2012
Re: Binary Options Con/Scam

OMG !!!
That is not apples to apples !!!
Simple: no one with any market abilities at the professional level will use a retail binary platform.
SO oviously those traders ARE NOT going to OTC

But retail traders HAVE NO CHOICE.
They will not go out to learn how to trade vanillas in order to construct binaries !
So, the alternative FOR THESE people is retail brokers.

Now, is the risk higher? Yes. But they have NO alternative.
And don't give me that IG/Nadex crap either. I don't want to hear it. You know it's not the same
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Old Nov 2, 2012, 8:00am   #52
Joined Aug 2012
Re: Binary Options Con/Scam

In you own posting you said
"Do i try and construct a binary options strategy via VANILLA options on an exchange "

So once again instead of looking at each point raised you just go on about a false reason that "They will not go out to learn how to trade vanillas in order to construct binaries !
Thts is your excuse to promote the BOs!
I am a retailer trader and it did not take me long to undestand that ETOs can be used to construct a BO

LOL I give up yopu go on "Educating" people your BS way..
Best of Bad luck

if you are game come and play in the proper market .. rather than the bashing of regulators and pretending that BOs are better products than Regukated exchange ETOs
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Old Nov 2, 2012, 8:09am   #53
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Re: Binary Options Con/Scam

Oh please!
That's BS in and of itself
You may have the ability to learn to do but 70% of traders out there do not. Meaning, 99.9% of regular people do not, can not and will not learn how. What do you tell them? DON'T TRY? That's absurd.

Get back down to earth. Not many people have the time, patience, energy, or money to start learning how to trade vanillas when all they want is to see their idea on the some stock or forex pair make some cash. Retail brokers offer this opportunity. IT IS NOT an alternative for pro traders. IT IS NOT an alternative for regulated exchange based assets.

IT IS an alternative for forex traders no matter where they trade, regulated or otherwise. Anyone who says different is simply full of it. And I say that simply because other than the NFA, there is no regulator capable of slapping a broker hard enough for any malfeasance. And even then, those transgressions are so lightly fined (look at Gain, FXCMS and others with the slippage issue just about a year or so ago) that they just find new ways to screw over the trader.

They are market making, make no mistake about it. There's nothing wrong with it!
And so long as you want to defend regulators - just make sure to explain first HOW IN THE WORLD IS IT ALLOWABLE TO PAY OUT AFFILAITES/IBs ON CUSTOMER LOSSES !!!!
If you explain how that's allowed - I will simply eat my hat with ketchup !

But there is no logical explanation beyond the fact that a market maker is a market maker. It's an institution allowed to carry on its business in this manner. Regulated or not. So.... now what ? It's ok cause you are insured????? Ok - good luck my man.
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Old Nov 2, 2012, 11:47am   #54
Joined Aug 2012
Re: Binary Options Con/Scam

Witha stariaght face tell average mum an dad
that MM OTC counterparty risk should be ignored and specialy with BO based in such questionable jurisdctions
Who would like to play when the judge and Jury is the same
Simple is it not
Just becasue the BO has simple interface ..
Thousands trade vanila options people are not that dumb...

Mate you win if you want to ahve a last word in thsi debate
Let just open up a BO business in our backyard where it wil not cost nothing to issue ourselves a "Fianncial services licences" and lets fleece those unsuspecting punters SKy hi pay out options

Thsi is really my last post on this subject
if anybody wishes to point out exactly how BO are better using facts not some BS about regulatros being bad etc I wil talk
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Old Nov 2, 2012, 11:52am   #55
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Re: Binary Options Con/Scam

Im sorry - you make no point
Yes - unregulated brokers are a problem. I don't deny it.
But there is no alternative. Face it . Normal people who don't trade vanilla options - WILL NEVER IN A MILLION YEARS go to optionsexpress and start building strategies on their own. It won't happen. The risk level isn't the tradoff - it's the actual product

That's all I've said all along
Vanilla options are great. The optimal financial tool available. But only for the mathematically inclined. Not for the guy who wants to spend a Wednesday evening to bet on a direction of a forex pair, index or stock
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Old Nov 2, 2012, 11:55am   #56
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Re: Binary Options Con/Scam

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Originally Posted by davidfielder View Post
Im sorry - you make no point
Yes - unregulated brokers are a problem. I don't deny it.
But there is no alternative. Face it .
why ?!!
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Old Nov 2, 2012, 12:34pm   #57
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Re: Binary Options Con/Scam

Where are you going to trade what's available at the unregulated Binary broker? In the same easy way? Sure advanced traders DO have alternatives. Not newbs
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Old Nov 2, 2012, 12:54pm   #58
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Re: Binary Options Con/Scam

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Originally Posted by davidfielder View Post
Where are you going to trade what's available at the unregulated Binary broker? In the same easy way? Sure advanced traders DO have alternatives. Not newbs
Why does anybody really need to trade binary options? It's just another gimmick designed to relieve people of their money.
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Old Nov 2, 2012, 12:58pm   #59
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Re: Binary Options Con/Scam

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Originally Posted by davidfielder View Post
Where are you going to trade what's available at the unregulated Binary broker? In the same easy way? Sure advanced traders DO have alternatives. Not newbs
IG , GFT , Nadex ...
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Old Nov 2, 2012, 1:07pm   #60
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Re: Binary Options Con/Scam

Movie theaters are also designed to relieve people of their money, as are supermarkets, comic book shops, gambliong parlors, hair dressers, arcades, computer stores, car parks, banks, brokers.............
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