Also, binary options trading platforms may be operating as unregistered broker-dealers without SECs approval.If the platform offers options on commodities and requires a margin (deposit) for participation, then the broker needs to be registered as a Futures Commission Merchant. If the contract being offered is for foreign exchange to customers with less than 5 million net worth, then the platform must be registered as a Retail Foreign Exchange Dealer.SECs warning is clear. You may not have the full benefit of the safeguards of the federal securities and commodities laws that have been put in place to protect investors, as some safeguards and remedies are available only in the context of registered offerings. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings.Binary options trading is being marketed aggressively these days, and a simple Google search wont give you the answers you need because online brokers are dominating the top results. While there is money to be made, dont rush in blindly. Theres a right way and a wrong way to go about it. If youre trading in NADEX, you should be safe. If not, nada. Not good. Not good at all. Read the full text of SECs investor alert.I agree that there are many binary options scams amp frauds. Thats why it is so important to read a lot of articles like this one, in order to be aware and avoid falling to those crooks broker.I think that reading as much reviews as you can find about a broker is a must.I have been a nadex user and would like to tell my experience so far. First, Id like to say that Ive been a registered person in the financial markets and have traded various assets. The prior comments are a bit harsh, but does have a aire of aspects if you dont understand whats going on. Ill lay out the challenges.Under contract the two mkt makers must have the spread as wide as possible. Youll see this in a settling mkt, 10 dollars. Though the cur.pair prices are displayed(reuters), the actual price movement on the charts do not move in tandem. I believe this is by design and is advertised as an indicative price action, but few understand what that actually means. Each transaction round trip is 1.80 no charge for losing trades. So to give you an idea, if you had a 500 account and did 15 winning trades a day five times a week youd have to cover 135 in fees. One would think the benefit of losing is not paying the fee so who cares If you are long you lose the contract price, but if youre short and lose youve lost the entire 100(if you win, you gain just the intrinsic value, kinda rough). A previous comment brought up the notion that the big moves are made in the last 30 seconds of a contract, when all mkt making ceases. This is speculation, but remember the price action isnt the real cur.pair action and is indicative. Coupled with the notion that the mkt makers need to make money, they can easily compute the sides and put things into their favorWho knows. Theres enough going against you to realize that this is NOT easy money and is actually quite far from the truth. Understand that binary option trading is a simplified way to make or lose money around the movement, even if adulterated, currencies. Can you make money The answer is yes, but you need to take a large risk at each trade to be profitable under the guise its only maxed at the contract price. Those who say otherwise have not traded professionally and are not being honest. One can easily lose their accounts trading Nadex, just like any other binary account.You can use these tags:a href abbr acronym b blockquote cite cite code del datetime em i q cite s strike strongThe contracts were launched last week with little fanfare by Nadex, the leading provider of binary options in North America. The company offers options with many durations and did not expect the tremendous level of early interest its seen. Hourly contracts remain the most popular kinds of options on the companys platform.The overall binary options market is growing at a faster pace than the rest of the options market. Nadex traded 3 million contracts so far in 2014, already more than the 2.3 million done in all of 2013 by the site. Overall, options trading is up 5 percent in 2014 over last year, according to Options Clearing Corp.We really saw the levels of trading in our two-hour binaries increase in the last two minutes of their life, so thats why we created the 20-minute contract, said McDermott. He said he sees continued growth for his company, especially as such options become better known in the U.S.In the United States, many binary options are offered on the Internet without regulatory oversight. The Securities and Exchange Commission and Commodity Futures Trading Commission have warned investors about fraud by some of those sites. Chicago-based Nadex is regulated by the CFTC.There currently are only three designated contract markets offering binary options in the U.S.: Cantor Exchange LP Chicago Mercantile Exchange, Inc. and the North American Derivatives Exchange, Inc. All other entities offering binary options that are commodity options transactions are doing so illegally. Source: cftc.govWe have been telling people about all the horror stories we have heard about binary bucketshops (unregistered binary brokers that make you broker by emptyig your bucket and filling theirs) and what they have been doing. Many have thought we where nay sayers or just Nadex promoters. Well I do love trading on Nadex and I do think the bucketshops are total scam shops (I know this will piss off Banc De Binary that I post this but the beautiful thing about the United States is we have the right to free speech and our opinion (They tried to get me to stop posting things about them saying it was defamation).
