Banc de Binary: An Inactive Options Broker
Until early 2017, Banc de Binary offered traders the ability to speculate on the forex market by means of binary options. Banc de Binary was headquartered in Israel but held a brokerage license in Cyprus, which allowed the company to offer its services in various European jurisdictions. Reports by the Reuters news bureau indicate that Banc de Binary decided to surrender its license and wind down its operations after more than five difficult years.
Trading Accounts Offered
Banc de Binary used to offer various account levels. The minimum deposit was $250 for a Micro Silver account. The majority of traders chose this account while the company was still in operation.
The next account level was Standard Gold, which required a $5,000 initial deposit. The Personal Management account level could be obtained after $35,000; the highest level offered by Banc de Binary, the Premium account, required $50,000 for very active traders.
The most interesting account offered by Banc de Binary was the Islamic trading portfolio, which respects the principles of sharia law with regard to usury and interest.
Banc de Binary Trading Platform
Prior to surrendering its license, Banc de Binary was used to receiving praise for its trading technology and its electronic platform options. The financial backing and trading platform of the company were provided by SpotOption, a major technology company that is used by the majority of binary option brokers around the world. SpotOption is an Israeli company that has offices in various parts of the world; its data centers are located in Asian jurisdictions with high bandwidth allocation.
The desktop application used by Banc de Binary was very similar to its mobile versions; the focus was on simplicity, particularly when it came to major forex pairs such as EUR/USD. Each binary option trade was displayed as a row; the columns indicated the underlying asset, expiration time, the amount invested, the payout level, and the market position. Traders could pull up charts, switch to long term option puts or calls, follow spot trading points, and even switch to ladder option trading in jurisdictions that allowed it.
Due to the split-second nature of binary options, Banc de Binary used to heavily promote its mobile apps for trading on the go. The iOS and Android apps were very responsive and intuitive; perfect for trading binary options with just a few taps on the touchscreen.
Although forex was a major focus of Banc de Binary, particularly in the European and British markets where currency pairs such as EUR/USD and GBP/USD are closely followed by financial news outlets, traders could enter orders for other binary options, including select commodities, major stocks and financial indices.
Due to the speculative nature of binary options trading, Banc de Binary had to operate in a very negative climate with regard to the way it was portrayed by the news media. The company faced many accusations of being a fraudulent operation, but this was not the reason why Banc de Binary ceased to operate.
Customer service was hit and miss at Banc de Binary. Account holders whose main language was not English or Hebrew had a hard time getting services. The company faced many complaints of extremely slow withdrawals, which seems to be an issue that plagues this industry. One of the problems in this regard was that many new traders opt to get sign-in bonuses that they believe should be immediately available for withdrawal. This is something that all traders should pay attention to when opening new accounts with any online forex or options brokerage.
The best method to get customer support at Banc de Binary was through online chat. Email messages were not responded promptly.
Reliability and Compliance
Banc de Binary was able to gain licensing in quite a few jurisdictions before it decided to surrender its main Cyprus license. The company’s marketing methods, which were adopted from the SpotOption parent platform, were deemed to be out of compliance in several countries such as the United States, Canada, the United Kingdom, and various members of the European Union.
The binary options industry will continue to experience hard times as long as unethical marketing practices continue to be used to promote them. Banc de Binary is the latest broker affected by this negative trend.