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Curriculum·Graduate·G505

The Retail and Funded-Account Landscape

Banc De Binary, 2016. Banc De Binary was one of the largest sellers of binary options to retail customers, marketing them as a simple way to profit from a market moving up or down, and US regulators charged it with selling them in the United States without registering and off any exchange; it paid settlements to the CFTC and SEC totaling around 11 million dollars in 2016 and closed itself in January 2017.

Taught in G505-01 ›Source ↗

Start with lesson 14 lessons · about 2.3 hours · free account to read in full

Lesson 1 opens on

Banc De Binary, 2016

Banc De Binary, a Cyprus-based firm, was one of the biggest global sellers of binary options to retail customers, all-or-nothing bets on a market moving up or down within a short window, and from 2010 it solicited US customers through YouTube videos, spam e-mails and internet advertising and by phone; the SEC described a representative urging a customer who said he was unemployed, with under 1,000 dollars in his checking account, to deposit more.95 million dollar SEC penalty and a 2 million dollar CFTC penalty, with a permanent ban on offering such options to US customers. Cyprus's regulator fined it 350,000 euros in January 2016, and in January 2017 it announced it was closing.

Read it in G505-01 ›The source ↗

The lessons

  1. G505-01Ask how the business makes moneyExplain that a trading product's economics reveal whether the business profits from your success or your lossabout 34 min · opens on Banc De Binary, 2016
  2. G505-02Copy trading and the economics of the platformExplain that a copy-trading platform earns on spreads, fees, and volume whether users win or loseabout 34 min · opens on eToro, 2024
  3. G505-03The funded-account challenge, and who profitsExplain that a scheme selling access to returns you could not earn yourself profits from your participation, not a shared edgeabout 34 min · opens on Nicholas Cosmo and Agape World, 2009
  4. G505-04When the product is designed for you to loseExplain that some products are structured so the customer loses on average by design, not by accidentabout 34 min · opens on Woodbridge Group and Robert Shapiro, 2017