SpotOption’s New Digital Contracts, Warnings And More
Spotoption just announced the release of their latest innovation, Digital Contracts. The Digital Contracts are another step toward providing the most transparent and regulator friendly binary options trading outside the US. This latest effort combines most of the aspects required by the CFTC and those changes proposed by CySEC earlier this year.
The new trading style is awesome but really nothing more than a new twist on the original Ladder Options already offered by the platform. Digital Contracts allow trader to choose from a set of listed strikes with the same expiry, price is determined by the position of the underlying assets price relative to that strike. The contracts pay out on a binary, all-or-nothing model that allows for massive profits with deep-out-of-the-money strikes.
And The Warnings Continue
Global regulators continue to roll out the warnings although it seems in most cases it is little more than lip service. Take for example the Austrian regulator FMA with their warning against the Swiss Methode binary options trading robot. The robot is definitely a scam, the issue at hand is that they’ve been in operation for more than a year and have been warned about many times in the past. They do in fact operate under many names including the Canadian Method, UK Method and many others.
The Manitoba regulator, MSCV, is also jumping on the bandwagon. It is one of 13 provincial regulators within the country of Canada actively working against a rising tide of binary options fraud. Their latest warnings are against Options500, an obvious scam, and Boss Capital, a once trusted broker who has been warned by just about every other province in Canada over the past few years.
The Spanish CNMV warned against a total of 7 brokers this month in their efforts to curb fraud. This broker is one of a growing number of European regulators who are stepping up their game. Their latest list includes TorOption, ARC Global Trader S.L., Tradev LTD, 53 Capital Trade Limited, DGX Systems LTD (also known as Prime FX Bank), DGX System LTD, and First Investments Capital Markets … most of whom have been warned before by other countries and all for the same thing. No regulation.
My conclusion is simple. On one side of the coin regulators hate binary options because of fraud and will not stop fighting it. On the other side of the coin traders still want to trade binary options and the brokers and technology providers want to provide them. This means that more and more brokers and tech companies will move toward regulation so long as the regulators allow access to the markets, which in the end will kill the unregulated market. If they don’t unregulated binary options will persist, and 95% of it will be total scams.