Binary options raise further concerns across the UK

Maria Nikolova

The Derbyshire police say the software controlling the trading platforms is manipulated by the binary options firms to distort prices and pay outs.

Binary options fraud continues to spark concerns amid authorities in many jurisdictions, with the UK being one of the examples.

Derbyshire Constabulary has published a statement with regards to binary options fraud. The Derbyshire Police refer to the numerous reports received by the National Fraud Intelligence Bureau (NFIB) of binary options scams proliferating. In particular, the Derbyshire Constabulary is concerned by complaints about binary options firms refusing to credit customer accounts although the customers think they had made a profit.

The police believe that the binary options firms manipulate the software controlling the trading platforms in order to distort prices and pay outs, displaying that customer accounts are in profit whilst the customers are paying in; but then ‘losing’ all the accumulated funds in a series of trades when the customers attempt to withdraw their money.

In a grave conclusion, the police say that it is unlikely that any money was ever traded on behalf of the customers and their ‘profits’ never actually existed. The brokers simply seek to persuade the victims to invest more money.

The alarming announcement comes as regulators are becoming increasingly aware of the seriousness of binary options fraud. In February this year, the UK Financial Conduct Authority (FCA) published a report about complaints received by the Consumer Contact Center, with the report showing that binary options were the kind of investment products that registered the most growth in enquiries for the period from December 1, 2015 to November 30, 2016.

Consumers enquiring about binary options are usually advised to contact the Gambling Commission, which regulates operators offering binary options.

Let’s note that HM Treasury is bringing certain types of binary options within the regulatory perimeter along with the implementation of the Markets in Financial Instruments Directive (MiFID) II. The new rules are effective January 3, 2018. This means that certain binary options will be regulated by the FCA rather than the Gambling Commission.

There have been some positive developments on the marketing side. A number of British football clubs have decided to terminate their partnerships with binary options brands. In September last year, Southampton FC put an end to its partnership with Banc de Binary, which shortly after that halted its operations. A more recent example comes from Tottenham Hotspur FC, which has removed all information about its binary options partner EZTrader from its website, as the deal was quietly terminated.

Read this next

Retail FX

Traders Union Names RoboForex the Best Forex Broker of 2023

In a recent update, Traders Union has unveiled its highly anticipated ranking of the Best Forex Brokers for 2023, continuing its tradition of providing valuable information to traders.

Digital Assets

PayPal introduces its stablecoin to Venmo users

PayPal has revealed that its PYUSD stablecoin, designed for payments and transfers, is now accessible through Venmo. This stablecoin, fully backed by US dollar deposits and similar assets, provides selected users with a regulated, dollar-denominated digital currency.


Stagflation Speculation: Is the UK Economy Heading for Uncharted Waters?

Amid rising concerns about a potential recession, the term “stagflation” is increasingly being used to describe the UK’s current economic scenario, characterized by conflicting indicators such as high inflation and stagnant growth.

Industry News

Exness Becomes Titanium Sponsor for 6th Annual Forex Expo in Dubai.

Multi-asset broker Exness has been named the Titanium Sponsor for the 6th edition of the Forex Expo in Dubai, further cementing its role as a key player and supporter in the trading industry.

Digital Assets

Mt. Gox victims to wait another year for repayments

Nobuaki Kobayashi, the trustee responsible for managing the assets of the now-defunct Mt. Gox Bitcoin exchange, has announced an extension of the deadline for repaying the exchange’s creditors.


Sumsub launches Non-Document Verification in the UK: Client onboarding in 5 seconds

Sumsub’s partnership with OneID introduces Non-Document Verification, enabling near-instant identity verification through official bank records while ensuring compliance with UK regulations.

Industry News

CFTC fines Advantage Futures $395,000 for 12.8 million unmonitored trades

Collectively, these failures by Advantage resulted in over 12.8 million cleared contracts not being processed or surveilled from July 2018 to June 2022. This accounts for nearly 1.5% of the trading volume by Advantage’s customers during that four-year period.

Industry News

SEC doubles down on fund names rule: “Growth”, “Value”, “ESG” better watch out

“As the fund industry has developed over the last two decades, gaps in the current Names Rule may undermine investor protection. Today’s final rules will help ensure that a fund’s portfolio aligns with a fund’s name. Such truth in advertising promotes fund integrity on behalf of fund investors.”

Industry News

ASIC sues crypto exchange Kraken over alleged margin trading product violations

“These proceedings should send a message to the crypto industry that products will continue to be scrutinised by ASIC to ensure they comply with regulatory obligations in order to protect consumers. ASIC’s action should be a reminder of the importance to comply with the design and distribution obligations so that financial products are distributed to consumers appropriately.”