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  1. #1
    Rookie Member Respect's Avatar

    Binary Options, and Legality !!!

    Hello! Im a trader in the US, and ive heard alot of different things about alot of different companies. One thing that strikes me as interesting is that no 2 sites agree on the legality of trading options in the US, in regards to regulations. So here I am. I had heard that US traders can ONLY trade options in companies that are CFTC regulated. Is this true? I currently use Finpari as my platform (not for long, and ive seen the few complaints lying around. I havent withdrew anything yet, so i cant input.), and they are NOT CFTC regulated. Does this mean I need to cease trade with them? If it is, what is the risk of getting caught? What reprocussions would I face?

  2. #2
    Legendry Member Michael Hodges's Avatar
    binary trading for us in the US is tricky. It is not illegal for you to trade with an offshore broker, but it is illegal for them to market and sell financial products to you... a loophole for sure. Some allow us to trade, others don't. There are a lot of scams out there but not all are scams. The best choice for you is to use NADEX. It's not quite the same as the offshore brokers but much safer, your money is guaranteed safe and you have the backing of the CFTC and SEC to protect you, you don't have that protection with an offshore broker.

    these two links are must reads.

    http://www.binaryoptionsthatsuck.com/review/nadex-suck/

    http://www.binaryoptionsthatsuck.com...by-step-guide/

  3. #3
    Rookie Member Respect's Avatar
    Quote Originally Posted by Michael Hodges View Post
    binary trading for us in the US is tricky. It is not illegal for you to trade with an offshore broker, but it is illegal for them to market and sell financial products to you... a loophole for sure. Some allow us to trade, others don't. There are a lot of scams out there but not all are scams. The best choice for you is to use NADEX. It's not quite the same as the offshore brokers but much safer, your money is guaranteed safe and you have the backing of the CFTC and SEC to protect you, you don't have that protection with an offshore broker.

    these two links are must reads.
    So I personally cannot get in trouble?

    Ive been doing alot of research lately, and heres where Nadex isnt an option. Finpari has an option where i can deposit an amount an get 10% back a month, a fixed income account. I have the money to deposit, but that is where Legality becomes an issue, as well as finpari's trustability. What are your thoughts on doing this, and your thoughts on finpari as a company?

  4. #4
    Legendry Member Okane's Avatar
    Quote Originally Posted by Respect View Post
    So I personally cannot get in trouble?

    Ive been doing alot of research lately, and heres where Nadex isnt an option. Finpari has an option where i can deposit an amount an get 10% back a month, a fixed income account. I have the money to deposit, but that is where Legality becomes an issue, as well as finpari's trustability. What are your thoughts on doing this, and your thoughts on finpari as a company?
    No. The trader does not get into trouble. Some regulators are
    after brokers that solicit people in countries where they are not
    licensed.

    By the way, that's not a fixed income account. I think you misread.

    What it says is:
    "Trader gets 10% from all negative trades back to his trading account. This feature may be activated
    upon preliminary request with consequential payouts decrease."


    It means that you get 10% from the trades you lost. So if you lost 100 you may get 10$ back BUT
    then your payouts decrease. "with consequential payouts decrease". You will earn less on each trade.
    So this is not a savings account. You are not going to get 10% a month. Also, I'm pretty sure
    there are some strings attached: "This feature may be activated upon preliminary request"

    I haven't heard good things about Finpari by the way.
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  5. #5
    Administrator Martin Kay's Avatar
    Quote Originally Posted by Respect View Post
    So I personally cannot get in trouble?

    Ive been doing alot of research lately, and heres where Nadex isnt an option. Finpari has an option where i can deposit an amount an get 10% back a month, a fixed income account. I have the money to deposit, but that is where Legality becomes an issue, as well as finpari's trustability. What are your thoughts on doing this, and your thoughts on finpari as a company?
    Well, you can trade with an off-shore broker, it's not illegal for YOU as the client to use any broker of your choice. To stay on the safe side however, you want a regulated CFTC broker like NADEX (more broker are coming soon, but we'll have to wait). As for Finpari, i've read some bad comments, yet if you managed to make a withdrawal you should be alright. If you didn't made any withdraw by now, test it! wha'ts there to lose ?(:
    “Don't believe anything you read on the net. Except this. Well, including this, I suppose.” ― Douglas Adams

  6. #6
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Respect View Post
    So I personally cannot get in trouble?

    Ive been doing alot of research lately, and heres where Nadex isnt an option. Finpari has an option where i can deposit an amount an get 10% back a month, a fixed income account. I have the money to deposit, but that is where Legality becomes an issue, as well as finpari's trustability. What are your thoughts on doing this, and your thoughts on finpari as a company?
    Yes, there are always strings attached. I still say NADEX is your best choice, but like Martin says, if you are using Finpari and not having a problem then what else is there to say?

  7. #7
    Rookie Member Respect's Avatar
    Quote Originally Posted by Okane View Post
    No. The trader does not get into trouble. Some regulators are
    after brokers that solicit people in countries where they are not
    licensed.

    By the way, that's not a fixed income account. I think you misread.

    What it says is:
    "Trader gets 10% from all negative trades back to his trading account. This feature may be activated
    upon preliminary request with consequential payouts decrease."


    It means that you get 10% from the trades you lost. So if you lost 100 you may get 10$ back BUT
    then your payouts decrease. "with consequential payouts decrease". You will earn less on each trade.
    So this is not a savings account. You are not going to get 10% a month. Also, I'm pretty sure
    there are some strings attached: "This feature may be activated upon preliminary request"

    I haven't heard good things about Finpari by the way.
    I did not misread. The feature you're talking about and the feature I'm referring to are different features.

  8. #8
    Legendry Member Okane's Avatar
    Quote Originally Posted by Respect View Post
    I did not misread. The feature you're talking about and the feature I'm referring to are different features.
    hmm ok, can you link me? Thanks
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  9. #9
    Legendry Member Michael Hodges's Avatar
    I've been looking at Finpari and see no mention of 10% cash back. All other brokers that offer this kind of feature use BONUS money to do it so it's not that great to start with. Also, Finpari is claiming to be regulated on their site.... and they aren't. I'd be very very wary of them.

  10. #10
    Rookie Member Respect's Avatar
    Quote Originally Posted by Michael Hodges View Post
    I've been looking at Finpari and see no mention of 10% cash back. All other brokers that offer this kind of feature use BONUS money to do it so it's not that great to start with. Also, Finpari is claiming to be regulated on their site.... and they aren't. I'd be very very wary of them.
    If you go to their deposit page, and click on at the top where it says Trading account or Fixed Income account, it details the way it works there.

    Ive seen the complaints against them as well, and actually contacted them personally about their "regulated" status, their response to me was "We follow all regulations from all countries we do business in, but because we are an international broker, we are not regulated by the framework from any one country."

    This statement to me, was a damned joke.

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