Company Filings More Search Options. While some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by U. Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. For a comprehensive overview of binary options, including information about investing in binary options that are subject to U. Binary Options and Fraud.
When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all. Typically, a representative of a binary options website will ask a customer to deposit money into an account where the customer can purchase binary options contracts. Representatives of binary options websites may use fictitious names and tout fake credentials, qualifications, and experience. They may misrepresent where they are calling from for example, pretending that they are in the U.
If you are considering investing money with a binary options website, look out for these red flags:. In addition to perpetrating fraudulent investment schemes, the operators of binary options websites may be violating the federal securities laws through other illegal conduct, including:.
Furthermore, if any of the products offered by binary options trading websites are security-based swapsadditional requirements will apply. Banc de Binarythe binary options seller allegedly solicited U. Some safeguards and remedies are available only to purchasers of securities in registered offerings. In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings.
Canadian Securities Administrators Investor Alert: Unregistered binary option platforms target Canadians. Report possible securities fraud to the SEC. Securities and Exchange Commission.
Investor Alerts and Bulletins.