CySEC also temporarily suspended the license of the Cedar Finance on December 19, 2013, because the potential violations referenced appeared to seriously endanger the interests of the company’s customers and the proper functioning of capital markets, as described in the official issued press release. CySEC also issued a warning against binary option broker PlanetOption at the end of the year and another warning against binary option broker LBinary on January 10, 2014, pointing out that it was not regulated by the Commission and the Commission had not received any notification by any of its counterparts in other European countries to the effect of this firm being a regulated provider.
6) Practice, Practice, Practice: The way you make your initial plan your own is with practice on a demo system with virtual cash. There is no shortcut for experience in any trading environment and especially not with binary options. Veterans suggest that one-hour options are the best place to start. See what times of day produce the most consistent swings in market action. Predictable swings are your targets. If you intend to got he turbo route, then try out a few 60-second options during practice sessions. Luck will play a part in winning and losing. The brokers are counting on it, but as Louis Pasteur once said, “Chance favors only the prepared mind.”
It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions (for example, foreign currencies, metals such as gold and silver, and agricultural products such as wheat or corn) with U.S. citizens, unless those options transactions are conducted on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade, or are conducted with U.S. customers who have a net worth that exceeds $5 million.
The answers to these questions vary for each trader. However, you should always go for quality trades, rather than quantity. Six successful daily trades will yield a higher routine than five losing and seven winning trades. Take the time to consider your options and the possible outcomes before placing your trades to end up with more profitable results.
Many binary option "brokers" have been exposed as fraudulent operations. In those cases, there is no real brokerage; the customer is betting against the broker, who is acting as a bucket shop. Manipulation of price data to cause customers to lose is common. Withdrawals are regularly stalled or refused by such operations; if a client has good reason to expect a payment, the operator will simply stop taking their phone calls. Though binary options sometimes trade on regulated exchange, they are generally unregulated, trading on the Internet, and prone to fraud.
Binary options are often considered a form of gambling rather than investment because of their negative cumulative payout (the brokers have an edge over the investor) and because they are advertised as requiring little or no knowledge of the markets. Gordon Pape, writing in Forbes.com in 2010, called binary options websites "gambling sites, pure and simple", and said "this sort of thing can quickly become addictive... no one, no matter how knowledgeable, can consistently predict what a stock or commodity will do within a short time frame".