Earlier this year, ASIC imposed restriction on CFD trading. In March, the regulator lowered the maximum leverage limit from 500:1 to 30:1. The Aussie watchdog also banned the sale of Binary Options to retail clients for 18 months in May this year, after which time it may be extended or made permanent. As a second…
Read more
Moreover, it has been alleged that the salespeople would inform potential investors that the only time the broker made any money was when the investor made money. This technique was used to gain additional trust for the trading information that the brokers were providing. Once the investors believed that the brokers only made a profit…
Read more
The raids are said to have resulted in the confiscation of around 43 memory devices, 68 computer systems and 19 mobile phones, and a number of valuable items and finance-related documents. It was reported that authorities were able to detain five people thought to be connected to the group, two of which were foreign nationals.…
Read more
The US watchdog also found that Butler would gather between $500 and $5,000 of customer deposits into a single trading account at Nadex. As the trader for NCI, he would use that money to trade binary options on the customers’ behalf. Butler would leave clients to think that each customer payment would be placed into…
Read more
Olson has admitted to being affiliated with Blue Bit Banc and similar bodies from around April 2014 to March 2018. He would sell binary options to Blue Bit customers during this period by utilising aliases and watching over sales staff within Blue Bit’s Manhattan-based office. Olson also admitted to misrepresenting Blue Bit trade profitability, manipulating…
Read more
ASIC Commissioner Cathie Armour said: Binary options’ product characteristics make them incompatible with investment or risk management use by retail clients. ASIC’s product intervention order will protect retail investors from these harmful products at a time of heightened vulnerability. According to the Commission, retail clients’ net losses from trading binary options are estimated at around…
Read more
The CFTC claims that the Cartu and Peretz brothers directed individual brokers to solicit US customers with falsely represented financial expertise, compensation structure, physical location and identity. The brokers also mislead their customers that the offered binary option transactions were profitable, when in reality, the majority of customers lost money. Ryan Masten of Austin, Texas…
Read more
The Commission alleged that the defendants created fraudulent marketing materials promising monumental profits with no risk of loss and distributed them via email spam and by making online videos. CFTC alleges that the scheme continued from at least October 2013 through August 2018. As a result of the fraudulent marketing campaign, more than 59,000 customers…
Read more
The U.S. Commodity Futures Trading Commission (CFTC) has informed the public yesterday that it has required Curtis Dalton of Middleton, Massachusetts to pay $200,000 for offering illegal off-exchange retail commodity transactions to U.S. and overseas customers while failing to be registered by the CFTC as required. Dalton offered transactions, which consisted of binary options in…
Read more
EU securities markets’ regulator ESMA has just informed the public of its decision that it will not renew the temporary prohibition of the marketing, distribution or sale of binary options to retail clients in the European Union (EU). The complete text of ESMA's decision reads as follows: ESMA has taken product intervention measures regarding binary…
Read more