Banc De Binary is one of the oldest binary options brokers and was founded back in 2009. They use the SpotOption platform and are responsible for a great deal of success that SpotOption has seen and help them establish market share. The methods used in that success is the issue with Banc De Binary.
Banc De Binary was the architect in having “account managers” which were high-pressure salespeople manipulating their clients to place trades and “advising clients” with a poor track record. Compensation packages for employees were based on net deposit levels of clients and many times the account manager would be convincing their clients not to withdraw their funds. These methods, while highly unethical, were adopted by many other binary options brokers due to their success.
Banc De Binary Offered a Bonus You Can Never Withdraw
Bonuses you can never withdraw. Banc De Binary was key in offering out unbelievable bonuses sometimes as high as $1000. The turnover or trading requirements can be as high as 30 times your initial deposit. This amount of trading would almost certainly result in the client blowing up their account. The idea of the bonus is not just to bring in new clients, it is to make sure they trade enough to capture profit from the client. It is no wonder that CySEC and FCA recently proposed to ban bonuses with all the abuse from companies like Banc De Binary.
Banc De Binary Accepted US Clients Until…
It is common knowledge that binary options are prohibited in the United States except for the NADEX and Cantor exchanges, which are regulated by the CFTC. The prohibition of US clients didn’t stop Banc De Binary from taking over 6000 clients from the US and over $11 million in deposits. This is obviously something that doesn’t get overlooked by US regulators and the result was one of the largest fines, which ended up being an $11 million settlement. Banc De Binary has not only targeted US clients but has also run into trouble in Canada and other jurisdictions that have banned binary options trading.
Another Big Football Sponsorship
What do binary options brokers do with much of their ill-gotten gains, a football sponsorship of course? Banc De Binary didn’t disappoint here with a sponsorship deal with Liverpool FC. Big name sports sponsorship deals can distract the public from the bad reputation of the broker and add legitimacy to the company. You would think that the football clubs would be more careful in their choice of sponsors, but it comes down to who is willing to pay the big bucks.
Everything Wrong With Binary Options Brokers
Banc De Binary epitomizes all that is wrong with the binary options industry and much of the trouble the industry is in with regulators today. The success of the company should not be looked on as a model for other companies. Banc De Binary among many other binary options brokers that have followed the same methods, has done serious and irreparable damage to the industry.