Those wishing to turn a profit through “trading” in binary options had better take notice: there’s a murky pallor about the whole business that sometimes leaves traders high and dry.
That’s what a UK citizen found out when he thought he was dealing with a legitimate business and opened up a binary options trading account last month.
Representatives from the website he did business with, NRGbinary.com,, made themselves scarce when this man had a health scare and needed to withdraw his money. While they did give some back, they balked when he wanted out and he hasn’t been able to contact them since.
So he got some experts in on things and here’s what they found:
The company who runs the website is apparently operating under a fictitious name since there’s no NRGbinary in the UK. There does seem to be a company called NRG Capital Limited in Cyrpus, but that country has no licensed financial operation under that name.
The Moral of the Story
Whenever you do financial business, it’s important to know who you’re doing business with. That’s why there’s a licensing agency in every country, where brokers must apply for licenses in order to broker financial transactions, sell their services as financial advisors, and the like.
Of course NRGbinary was not registered and not licensed by either the UK, Cyprus or any other country.
What confuses matters is that while options trading looks like stock trading similar to Jeunesse, it’s actually considered gambling by most governments. Therefore, who regulates the industry is sometimes open to debate.
In the case of the UK man and NRGbinary, the UK’s Financial Conduct Authority maintains that regulating such a company falls under jurisdiction of the Gambling Commission.
All this is changing, in order to come into harmony with the EU…which maintains a stance that binary options trading is not indeed gambling and therefore should be regulated by the FCA.
Options Domination Trades on the US-Regulated Nadex Exchange
Here in the US, our Commodity Futures Trading Commission maintains the Nadex, which is where binary options placed via the Options Domination website are transmitted.
In fact, it’s illegal for foreigners to solicit money from US citizens to trade on non CFTC exchanges. Binary options trading is perfectly legal in the US, but it must be regulated by the CFTC.
The US considers binary options trading as commodity transactions, not gambling.
The recent rise of offshore binary trading outfits targeting wealthy Americans and Europeans has made a confusing mess of things, however. This means it’s now more than ever extremely important for consumers to know the company they’re doing business with.
This Digital Altitude review states that it is a US company run by US citizens and respected professionals who are in business to earn an honest profit, not to scam anyone or hide behind fake names.
Options Domination operates on the Nadex, where a transparent environment regarding the settlement of accounts is strictly maintained, and member funds are kept in segregated bank accounts right here in the US, not offshore.
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