Monday, December 23, 2013

Fun With Binary Options: GOptions.com

When buying a binary option the potential return it offers is certain and known before the purchase is made. Binary options can be bought on virtually any financial product and can be bought in both directions of trade either by buying a “Call”/“Up” option or a “Put”/“Down” option. This means that an investor can go long or short on any financial product simply by buying a binary option. Binary options are offered against a fixed expiry time which may be e.g. 60 seconds and up to 30 minutes, an hour ahead or to the close of the trading day.[2] 
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Non exchange-traded binary optionsBinary options contracts have long been available over-the-counter (OTC), i.e. sold directly by the issuer to the buyer. They were generally considered "exotic" instruments and there was no liquid market for trading these instruments between their issuance and expiration. They were often seen embedded in more complex option contracts. 
Since mid-2008 binary options websites called binary option trading platforms have been offering a simplified version of exchange-traded binary options. It is estimated that around 90 such platforms (including white label products) have been in operation as of January 2012, offering options on some 125 underlying assets. 
The platforms offer standardized short-term binary options with a pre-determined profit/loss, that cannot be liquidated (buy or sell to close) before expiry.[disputed ]The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued a joint warning to investors regarding binary options.[3] 

SEC.gov | SEC Warns Investors About Binary Options and Charges Cyprus-Based Company with Selling Them Illegally in U.S.:
The SEC and the Commodity Futures Trading Commission (CFTC) today issued a joint Investor Alert to warn investors about fraudulent promotional schemes involving binary options and binary options trading platforms. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements and may be engaging in illegal activity.
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According to the SEC's complaint against Banc de Binary filed in federal court in Nevada, the company began offering and selling binary options to U.S. investors in 2010. Banc de Binary induced investors to create accounts with the company, deposit money into those accounts, and then purchase binary options whose underlying assets include stock and stock indices. Banc de Binary's solicitation of U.S. investors has been quite successful and attracted some customers with very modest means. For example, one investor had a monthly income of $300 and a net worth of less than $25,000, and another customer was encouraged to deposit additional funds into his Banc de Binary trading account even after he informed the Banc de Binary representative that he was unemployed with less than $1,000 in his checking account.
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"Investors should be aware of the potential for fraud in this area as well as of the reality that they can lose their entire investment," said Lori Schock, Director of the SEC's Office of Investor Education and Advocacy. "We strongly encourage investors to check the background of brokers and advisers and trading platforms before making a decision to invest. If investors can't obtain simple background information such as whether the financial professional is registered with the SEC or FINRA, then they should be extremely wary." 
GOptions|Binary Options Terms & Conditions:

11. Withdrawal ProcedureGOptions’s finance department handles all withdrawal requests submitted. Identification documents must be submitted in order to process a withdrawal prior to the opening of the first trade. This will insure that the account is compliant and up to the standards of our KYC and AML policies, as required by law. There is no fee to withdraw via credit card so long as the account didn’t fall into our dormancy rules, however any withdrawal using bank transfer will accompany a processing fee of $25. Once a withdrawal request is submitted it can take GOptions up to 3 business days to process the request, unless the account was verified according to the conditions explained above (prior to opening the account in which case the withdrawal will be guaranteed to be processed same day assuming the request was provided Monday through Friday between 8am-6pm GMT). Once the request has been approved please allow an additional 5-7 days for the funds to show in your account. GOptions reserves the rights to charge an additional $10 + 7% for a withdrawal of any kind if the account has laid dormant for 1 month or more since being opened whereby not one trade was opened since opening and funding the account or in the event where the account has laid dormant for 3 months or more. The $10 + 7% fee will be on each and every withdrawal required by the company in order to complete the request. If the customer used 2 credit card deposits or more, each of those deposits will be credited back to the customer, less the $10 + 7% fee for each. In the event where Clients wish to withdraw their balance without having traded on the platform will be subject to up to $10 + 7% handling fees which would be determined at the Company’s sole discretion. Any other withdrawal done by other means of e-wallets will carry with them a 4% fee. 

Withdrawals of profits will only be processed when 20 trades or volume in the amount of the deposit (trades volume must then be greater than the deposit value), the greater in sum of the two, are performed. Failure to execute this amount of trading will render the account as fraud, an attempt at fraud, or otherwise nullifies gains. The company bears all responsibility in this case to return the original amount to the customer. Profits will otherwise be nullified. If however, these conditions were met and profits remain in the account, the customer will be able to withdraw said funds in full based on the above fees and conditions and assuming the account has been verified. 

Is GOptions a Scam? Beware, Read This GOptions Review

Editor’s Note – Why does GOptions Suck in 50 Words?
Last time I reviewed a Binary Options website that used the slogan “We focus on who really counts. You.” I said that I’m going to be sick if I see another one. Unfortunately, it was the first thing I noticed when I started my review of GOptions… This overly used phrase screams “We don’t care about you and we don’t even take the time to create a new slogan”. More than that, they call themselves “… the most professional and objective platform for trading…” bla bla… so we have another “market leader” on our hands.
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Is GOptions a Scam?It’s a war out there! People are claiming GOptions is a scam because Signal Index allegedly erased bad trades from the history of some signal providers to make them look good. Also, some signal provider used the name of another, more prolific provider just to get attention and subscribers. Unfortunately the VP of GOptions publicly confesses that he suggested this little name “trick”. From there, all hell breaks loose and a full-on internet war begins. At the moment this article is written, their Terms and Conditions state: “This Agreement is made by and between Longmont Ltd, the operator of the brand name “GOptions” as well as the site Goptions.com and you.” Of course we can deduce that their operating company is Longmont Ltd…but we found on the Internet an earlier picture taken from their website… in this older picture, they state that GOptions is “… owned and operated by Massive Consulting Ltd (Registration #1547635), a BVI registered company.” The addresses of the two companies differ as well. Now what can I understand from all the arguments related to scam suspicions, switching addresses and owners? Why did the name of the owning company change? Did Massive Consulting Ltd sell the website to Longmont Ltd? Is this all an elaborate scam? A lot of questions, right? For me all those questions have just one answer… 
Scam Broker Investigator - GOptions Broker Review:
What we look for in binary option brokers to determine if they are a legit broker or a scam broker is very simple. Are the licensed and regulated by CySEC in Cyprus? Do they fall under the MIFId regulatory rules in the European Union (EU)? Does the Australian Securities and Investments Commission in Australia or the Finanstilsynet (The Danish FSA) include them in their list? Are they FSA registered in the United Kingdom? 
On June 6th 2013 the SEC wrote an investor alert regarding binary option scam brokers.Investor Complaints Relating to Platforms Fraudulent Binary Options Trading. The SEC and CFTC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories: refusal to credit customer accounts or reimburse funds to customers; identity theft; and manipulation of software to generate losing trades. Read entire alert on the SEC website here 
When choosing a binary option broker it is important to check the list of regulated binary option brokers to see if the broker you would like to open an account with is regulated by a government regulatory agency.
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GOptions tells us that they are working on getting a brokers license from one of the regulatory authorities. 


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