Multi-billion-dollar online trading and investments industry could be banned if ASIC gets its way The corporate regulator has proposed stamping out the controversial multi-billion-dollar binary options industry, flagging that it will ban all Australian-based brokers from having Australian clients. Key points: ASIC is looking to shut down the binary options industry The regulator has also proposed major restrictions on CFD investments Australians lose hundreds of millions of dollars a year in the complex and confusing trading systems https://amp.abc.net.au/article/11437550
This title is terrible. Ban is probably consistent. I will adapt this to the US despite it being in Australia to demonstrate my point. Online gambling is generally seen as illegal. The old sites were rife with fraud and basically ended up being some form of ponzi/money laundering scheme anyway. Binary options are no different. The problem isn't the options, it's the timeframe. There's no predictability on ultra short time frames for a retail person. No different than betting on the dice at the local craps table. The house has tremendous odds. If you asked me to make a market for you on a 5 minute binary option I would do it every single time in a heart beat. The odds are so far in my favor it makes roulette look beatable in a consistent manner. For everyone one "legitimate" casino you have 100 frauds. Regulate binary options companies like casinos and educate the public on the dangers of investing in binary options. They are quickly becoming the new forex as a catch-all for fraudsters.
I dont fully understand , why would they ban CFD's and Forex etc when every other market is also a gamble unless one has proven method. I guess it must be the shady people around it all like gaussian sites. thanks for the article.
Fixed it for you. I don't normally do that here, but that one was important. I do not know of any Gaussian websites.
I think it's because of the excessive leverage on offer, there's a conflict of interest, the software can be designed in a way that's not in the trader’s best interests and the operators prey on inexperienced investors that don't understand the real risks involved. Nearly anyone can setup a CFD/FX brokerage business which attracts unscrupulous operators some of which have very little professional experience. If they are not credible, they don’t offer any real benefit to the market or society and all they effectively do is redistribute wealth from others into their own shady pockets, it makes sense to restrict their operation.
%% They cant; but what he has written about seems to be a common ban...…………………………………………………………………………………………………...
it is high time the toothless tiger shows some guts .. - Australian Client money safety rules are there but if broker ( non Equity) goes belly up you become unsecured creditor, various CFD/FX brokers going down in recent times ( before the COVID meltdown) -Equity broker clients are supposed to be protected by AFG but that is not time tested - Need UK style protection