Consumer affairs warns about Scam Binary Options

T

traderjo

https://www.accc.gov.au/media-release/beware-high-risk-no-reward-investment-scams

http://www.abc.net.au/news/2017-09-...tralians-millions-called-to-be-banned/8965856

Binary Options as a product are legit in Australia however
There are two fraudulent activities
1) Thinly or unregulated "Binary Options providers/ brokers"
2) Companies selling "Trading Systems" based on Binary options ( in that sense they are no different then all other "Dodgy system/ signal/ EA sellers on FX/ Stock/ Futures or Options" using it on a Quick Gamble nature of Binary Options makes it worst for consumers
 
You are correct Overnight ( somewhat) this regulator is many times called "Toothless watchdog"
but better than nothing.. I suppose (purely from consumer point of view) From a "System sellers" point of view US is better, anybody can start a business of selling Financial trading education / Automatic signals etc under ASIC you at least need an AFSL
 
traderjo said:
but better than nothing.. I suppose (purely from consumer point of view)
More...
absolutely wrong thinking.. the existence of SEC equivalent gives people a false sense of security. therefore they don't do a proper due diligence to detect a fraud or investment worthiness .
 
So what would you have instead? NO scrutiny at all??
Example 1 lets take "Client money safety" with Futures and FX product "brokers"
UK= Strong regulations, Client money protected in case of broker failure
USA = No protection ( NO SIPC)
AUS = No Protection ( AUS corporations law says you become a unsecured creditor)
all 3 are "First world" countries known for good governance!

Example 2:
Any "Educator can make any claim and not held accountable for
USA= Yes no need of licencing / scrutiny ( however legit ones need to be CTA but no diff between what CTAs do and other "signal providers at the end of the day both are telling you what to buy or sell and when.
AUS: ASIC shuts down such operators ( not regularly though http://www.couriermail.com.au/busin...l/news-story/5cf808eba9d359f49635f8bcf866d0c4
 
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