Binary option broker Binary Capital Markets Ltd., trading as BCM, has obtained a license from the International Financial Services Commission (IFSC) of Belize, according to data published on the regulator’s website. The license was announced in late December 2016.
BCM is based in Belize city and operates via the website www.binarycm.com.
BCM offers platform for binary option trading in more than 70 assets and up to 90% payout. It has four types of trading accounts available to clients with a minimum deposit requirement starting from $250.
The broker is also regulated by Cyprus’ CySEC under the name GSE Golden Sky Europe Ltd. and is registered with several other EU authority bodies – Italy’s CONSOB, Germany’s BaFin, and the UK’s FCA.
BCM was launched in 2016 and received a CySEC license as an investment and ancillary service provider in January the same year.
Belize, best known as an offshore destination for financial service providers, offers milder regulation and licensing requirements and lower incorporation costs. It is chosen by many financial service providers as a regulatory location since the IFSC’s requirements are less strict. The regulator rather relies on self-regulation by licensees. Nevertheless, a broker license is attractive to traders as it brings them a feeling of confidence and security when choosing a broker.
In binary options trading, investors guess whether the price of a certain instrument would go upwards or downwards within a pre-determined time frame. Once the time is up, the option is deemed expired and the bet is settled. Depending on the outcome, a trader either collects a profit, or loses money.
Within Europe, most regulators are either imposing stricter rules for trading in binary options or taking steps toward banning these type of instruments altogether. In August Belgium banned the distribution via online channels of over-the-counter (OTC) binary options, spot forex, and CFDs with leverage. France has also banned the online advertising of “highly speculative and risky financial contracts”, such as binary options, forex and CFDs with a leverage greater than 1:5. Meanwhile, the Netherlands and Germany have also announced they consider the ban on the advertising of such instruments.
Israel, which is not an EU member state, also imposed a ban on trading in binary option instruments in the country. Recently, the Israeli regulator also said it is to ban the advertising of binaries to retail clients abroad, which would put an end to major brokers will not be able to operate locally-based call centers.