Binary options broker pushes its client to the limit

Maria Nikolova

Aggressive persuasion methods used by a binary options broker have led to heavy financial losses and have pushed Fred Turbide of Edmonton, Alberta, to commit a suicide, The Times of Israel reports.

As regulators across the globe are stepping up their efforts to tackle illicit online trading and binary options fraud, the extent of damage caused by such scams is becoming more apparent.

A truly sad story on the topic appeared today in The Times of Israel, with the newspaper reporting of a 61-year old Fred Turbide of Edmonton, Alberta, having committed suicide after he lost a heavy sum of money due to using the services of binary options brokers.

The newspaper, quoting a Canadian law-enforcement official as a source, reports that Mr Turbide committed a suicide on December 21, 2016, following the loss of all of his savings and a substantial amount of borrowed money, totalling more than CAD300,000 (USD 226,120). He lost about two-thirds of this sum on the platform, which operates from Israel.

Mr Turbide had been pushed by his broker at 23Traders, who presented himself as “Julian Wellington,” to invest his life savings, along with the credit for his home and business into binary options. The aggressive marketing approach included reassurances that he would generate substantial revenue. Wellington told Mr Turbide he was making money, urging him to invest more, until one day he admitted that all the money is gone.

Before committing the suicide, Mr Turbide left a note to his wife: “I am so, so sorry. I am in the garage dead. Do not go there just call the police… Julian, Thomas and David at 23Traders have pushed me to my death.”

Fred Turbide was an experienced entrepreneur and, as his wife says, a good family man. Turbide’s widow, Maria Chaves-Turbide said “I want to see these people shut down. I want this scam closed and I want the world to know that they were responsible for taking the love of my life away from me.”

The Times of Israel elaborates that operates from a call center in Israel that goes by the name of “Market Giants Ltd”.

Asked for response, a customer service representative of said the claims made in the article were “absolutely false”.

At present, Israel is taking a very decisive approach against the binary options industry, resulting in binary options companies cutting and running. The role of Israel’s national regulatory chief Professor Shmuel Hauser has been vital with respect to stopping the activities of such entities. Professor Hauser has labelled the binary options business as “filth” and has noted the tremendous damage it is doing to Israel’s reputation.

These efforts are echoed across the globe, with the most recent example being from France where a ban on the advertising of risky financial products, like binary options, has been introduced.

Read this next

Retail FX, Technology

MetaTrader’s iOS issue opens brokers’ eyes to other trading platforms

In a surprising (or-not-so-surprising) move, Apple has removed MetaTrader 4 and MetaTrader 5 from its App Store in a huge blow for the leading FX trading platform provider.

Retail FX

Pepperstone adds analytics and automated trading tools free of charge

“We look forward to bringing significant value to Pepperstone traders and making a real, positive impact in their daily trading habits. We are excited to welcome them on board.”

Retail FX

FP Markets wins Best Global Value Broker for 4th consecutive year at the 2022 Global Forex Awards

“We greatly appreciate the continued international recognition as at FP Markets we pride ourselves on these attributes and these prestigious awards are testament to the hard work from our global team to always provide our clients with the ultimate trading experience.”

Inside View

How to Engage Your Customer at Every Stage of Their Journey

As many as 89% of successful businesses say that providing assistive customer experiences is critical to their growth. That’s because a mere 5% increase in customer retention can boost profits by 25% to 95%.

Industry News

CFTC fines Chinese firms Chinatex and COFCO $720,000 for wash trading

Chinatex traders engaged in wash trading in order to liquidate a long position in the account of an affiliated company and re-establish the position in its own account, to the ultimate benefit of its parent company, COFCO.

Industry News

US-based operation of Brazilian broker XP fined $500,000 for recordkeeping failures

“Proper recordkeeping is vital to protecting our markets and market participants from fraud and manipulation. This case serves as another example of the Commission’s intent to vigorously enforce the recordkeeping obligations of its registrants.”

Digital Assets

Bitfinex announces integration of USDt on Polkadot

Polkadot is the brainchild of British computer programmer and Ethereum co-founder and former CTO Gavin Wood.

Executive Moves

FPG hires ex-Fireblocks Chris Hazelton to head marketing at crypto prime broker

“Chris’s experience as a marketing leader at several exceptional businesses will help us refine our message to an institutional audience that’s overwhelmed with new information and show tangible examples of how we’ve helped customers like them scale successfully in crypto.”


FinanceFeeds Podcast Ep. #6: Gold-i’s Tom Higgins talks efficiency in FX and inner workings of Crypto Switch

On its sixth episode, the FinanceFeeds Podcast welcomed Tom Higgins, the founder and chief executive of trading systems integration provider, Gold-i.