Binary Options: Where it really belongs – Opinion

“We need to completely shake up the binary options industry and position it where it really belongs, that being firmly in the gaming sector” – Barry Davies, Founder, Optiopus

Ever since its establishment, FinanceFeeds has maintained that binary options is not a financial markets product.

It was founded by, and is operated by affiliate lead marketers and gambling site owners, and has absolutely no connection whatsoever to electronic trading.

The litany of fraudulent activity that has emanated from the OTC binary options sector recently, attracting the attention of law enforcement agencies, national governments and financial markets regulators worldwide has mushroomed, casting a very unpleasant shadow over the genuine electronic trading industry to which it bears no resemblance.

Today, Barry Davies, founder at Optiopus, puts forward his opinion on why binary options should be classified as a gaming product, under what he considers to be the “Candy Crush model” , and should never be regarded as a financial markets environment.

Over to you, Barry.

After seeing how the binary market has evolved and most importantly the direction that it has taken, I have come to the conclusion that binary options should be situated in the gaming space as a fun method of entertainment and not as a financial product.

Barry Davies

A few years ago some gaming site and online casino operators tried to introduce binary options which they positioned as a financial product, as a add on feature to there existing casino suite that at the time included casinos, poker sites and sports betting sites. The background of this bears absolutely no relation whatsoever to financial services or investing.

From my discussions with these companies over the last few years, their initial feedback has always been “lets try to cross sell our data”, but their issues were how the product could be positioned next to their gaming products, thus eventually they dropped this from the suite of products and made it into dedicated binary options which purported to be something that it is not.

In conjunction with these gaming companies that introduced this product, the binary options market exploded with bucket shop style brokers entering the market very aggressively and attempting to sell the binary options product as a legitimate financial product, which only served to dupe customers all over the world as we all know the platforms are rigged in favor of the brokers and their associated brands.

Now, here we are in a situation in which the binary market is at tipping point, as it has caused untold damage to many financial markets globally, resulting in the ruined reputation of online trading, advertising bans in many countries and blanket prohibitions of all OTC derivatives on, in some cases, a national basis.

It has created such damage that even if genuine binary options brokerages with very well recognized regulatory standing (such as the exchange traded derivatives in the US), enter the market, the trust is not there anymore.

As person who started his career in the gaming industry and experienced the binary options market in terms of a client and as a marketeer, I decided to build a platform Optiopus.com – for the client and only client in which users can join with no fear of being duped out of their hard earned cash.

Instead, we believe that it is a gaming product and should provide users with a means to interact via a social map, trade binary options, play games, join a community and win prizes.

In conclusion, we need to completely shake up the binary options industry and position it where it really belongs, that being firmly in the gaming sector.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<