Banc De Binary, one of the largest regulated binary options brokers, is planning to terminate its bonus promotions program and to overhaul its business model in an attempt to get in the regulators’ good graces, reports the site Finance Magnates, quoting own sources in the company.
It is a public secret that the trading bonuses are one of the favorite means the binary options brokers employ in fleecing their clients. Usually the bonus is accompanied by a lot of small print requiring the recipient to trade a certain sum before being able to withdraw any profits. And usually by the time s/he is done trading, there is nothing left to withdraw.
Earlier this month Banc De Binary made the publicity stunt of releasing a statement for the media in which Banc De Binary urged traders to beware of unregulated binary options brokers. In the summer the broker introduced a launched the Novice trader system to cap the losses of inexperienced traders, so maybe it is indeed willing to become one of the “good guys”.
On the other hand, Banc De Binary has transgressed many times and so badly, that it lost its Belize license and we are all aware of the ease with which the International Financial Services Commission (IFSC) hands out licenses. Banc De Binary is also the champion among the binary options brokers this year in terms of fines with the $11 million fine imposed by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for scamming US citizens out of millions.
There are also the European financial regulators that are on the warpath against the binary options brokers, even the regulated ones, and the forex and CFD brokers. We remind you that just a few days ago France’s National Assembly approved the ban on the advertising of “highly risky investment products” – a definition that applies to the binary options and some forex and CFD products.
The Netherlands is also planning to take the same measures.