Industry News, Broker Warnings And The Latest Shut-Downs

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Industry News, Broker Warnings And The Latest Shut-Downs

Regulation Hurts Binary Options As Much As It Helps

Revenue and profit continue to decline in the binary options industry. This is directly related to the global crack down on frauds, scams and unregulated, unlicensed brokers. The good news is that this means there are a lot less scams and fraud than there used to be, the bad news is that legit brokers are hurting from negative sentiment and causing a shortage of safe, trusted brokers for those of who want to trade. The latest news shows that SpotOption, the industries largest tech provider and sponsor of what used to hundreds of brands, is not immune.

According to a report in TheMarket, an Israeli based media outlet, citing insider information and a financial statement provided by accounting firm BDO, SpotOptions revenue grew marginally in 2020 but were hurt by numerous factors. Total 2020 revenue came in at $47.8 million USD, up roughly 25% from the year before, but bottom line profits shrank by a full 5%. Considering the fact that Israel, among some others, has banned the exportation, marketing and use of binary options we can only assume these numbers will worsen for the current year.

The South African Financial Services Board has joined the fight against binary options fraud, enacting regulation of the industry within its borders. To date, the regulator does not recognize licensing or regulation from foreign agencies which has resulted in a raft of warnings. The latest is against Stockpair.net. Stockpair.net is the Belize regulated arm of Stockpair.com, a CySEC regulated broker, and not licensed to operate with South African citizens.

Both Stockpair.com and Stockpair.net have received warnings in the past from Canadian and French regulators. In the case of Canada it is no surprise as binary options are not permitted within the country or any of its provinces. When it comes to warnings it is the most prolific issuer. Looking to the French warning cited by FinanceMagnates, it is against the .com version and dates back to 2020, before it became CySEC regulated. The South African FSB regulates under the Financial Advisory and Intermediary Services Act of 2002. South Africa is one of the worlds top ten capital markets and a long time target of the binary industry.

MagnumOptions, a long time operator and broker of dubious quality, has closed its doors. Rather, it had its doors closed for it. This is in response to repeated warnings from multiple regulators, and criminal actions taken by the UK’s FSA. The FSA has seized the assets of the broker and the business entity operating it. Hampshire Capital, successor of Solaris Capital, is a Bulgarian registered business entity accused of operating without a license, using aggressive and predatory marketing practices and aggravated fraud. The company is now in forced liquidation while authorities dig deeper into the scheme. Solaris Capital is also in provisional liquidation pending the outcome of the investigations.

Industry News, Broker Warnings And The Latest Shut-Downs

Regulation Hurts Binary Options As Much As It Helps

Revenue and profit continue to decline in the binary options industry. This is directly related to the global crack down on frauds, scams and unregulated, unlicensed brokers. The good news is that this means there are a lot less scams and fraud than there used to be, the bad news is that legit brokers are hurting from negative sentiment and causing a shortage of safe, trusted brokers for those of who want to trade. The latest news shows that SpotOption, the industries largest tech provider and sponsor of what used to hundreds of brands, is not immune.

According to a report in TheMarket, an Israeli based media outlet, citing insider information and a financial statement provided by accounting firm BDO, SpotOptions revenue grew marginally in 2020 but were hurt by numerous factors. Total 2020 revenue came in at $47.8 million USD, up roughly 25% from the year before, but bottom line profits shrank by a full 5%. Considering the fact that Israel, among some others, has banned the exportation, marketing and use of binary options we can only assume these numbers will worsen for the current year.

The South African Financial Services Board has joined the fight against binary options fraud, enacting regulation of the industry within its borders. To date, the regulator does not recognize licensing or regulation from foreign agencies which has resulted in a raft of warnings. The latest is against Stockpair.net. Stockpair.net is the Belize regulated arm of Stockpair.com, a CySEC regulated broker, and not licensed to operate with South African citizens.

Both Stockpair.com and Stockpair.net have received warnings in the past from Canadian and French regulators. In the case of Canada it is no surprise as binary options are not permitted within the country or any of its provinces. When it comes to warnings it is the most prolific issuer. Looking to the French warning cited by FinanceMagnates, it is against the .com version and dates back to 2020, before it became CySEC regulated. The South African FSB regulates under the Financial Advisory and Intermediary Services Act of 2002. South Africa is one of the worlds top ten capital markets and a long time target of the binary industry.

MagnumOptions, a long time operator and broker of dubious quality, has closed its doors. Rather, it had its doors closed for it. This is in response to repeated warnings from multiple regulators, and criminal actions taken by the UK’s FSA. The FSA has seized the assets of the broker and the business entity operating it. Hampshire Capital, successor of Solaris Capital, is a Bulgarian registered business entity accused of operating without a license, using aggressive and predatory marketing practices and aggravated fraud. The company is now in forced liquidation while authorities dig deeper into the scheme. Solaris Capital is also in provisional liquidation pending the outcome of the investigations.

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  • Binomo
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New Warnings of Stock Market Shutdown, Martial Law

As cancellations, emergency restrictions, and panic selling of assets spreads, the global economy is at risk of grinding to a halt. We are already in the throes of the worst market mayhem since 2008.

If the news on the coronavirus front gets any worse from here, we will be facing a once in a century financial crisis – and a possible Great Depression ahead.

That said, there are at least some reasons to be hopeful. The number of coronavirus cases in China and Korea appears to have plateaued. Warmer weather in the weeks ahead and more aggressive containment strategies may begin to inhibit the spread of the deadly infection in the U.S. and Europe.

But public officials so far are failing to inspire confidence. German Chancellor Angela Merkel shocked the markets when she said up to 70% of the German population could contract coronavirus if more isn’t done to stop its spread.

And the stock market tanked immediately after President Donald Trump spoke to the nation Wednesday evening.

Meanwhile, the response from central bankers and the Plunge Protection Team has so far been woefully ineffective. The Fed’s emergency rate cut last week, and its $500 billion expansion of bond purchases announced Thursday have done little to stem trillions of dollars in market liquidations as circuit breakers on stock exchanges get blown out.

The tools central bankers have at their disposal aren’t suited to the problem at hand.

The Fed can address liquidity and solvency problems in the bond market and banking system. But it can’t get consumers, workers, and businesses in the real economy to return to their normal activities. Government officials wouldn’t allow a return to normalcy at this time, anyway.

President Trump is contemplating invoking temporary new emergency powers. And globalists are eyeing permanent new power grabs to restrict our personal travel and financial freedoms.

The World Health Organization is exploiting the coronavirus crisis as an opportunity to promote cashless technology. The WHO says paper cash may be spreading the virus and recommends people use digital payments instead.

One of the virtues of silver-based money, by the way, is silver’s antimicrobial properties. Viruses and bacteria that thrive on the surface of paper Federal Reserve notes are naturally repelled by silver coins.

But the threat of the Wuhan virus spreading through common currency is likely to accelerate the war on cash. That’s what trends forecaster and frequent Money Metals Podcast guest Gerald Celente warned about in a video presentation earlier this week.

Gerald Celente: No paper money. You’re going to spread them germs. We got digital dough for you. You think things are bad and the market’s going way down, economy’s crashing? Martial law, digital currency, and for me, I don’t give financial advice. My gold forecasts, match them, anybody, anywhere in the world. You said the gold bull run began in June of 2020, June 6th, and that gold bull is going to keep on running, as I see it. But you know. Think for yourself.

Although gold prices got pulled down on Thursday in the brutal wave of selling that hit Wall Street, the money metal this week is once again holding up much better than the stock market, commodities, and cryptocurrencies.

As the Dow Jones plunged 10% yesterday – its worst day since the 1987 crash – Bitcoin crashed 26%. Gold suffered only a 3% drop.

Another week like this in asset markets, and a true deflationary spiral could take hold, with a wave of corporate defaults and bankruptcies coming seemingly out of nowhere.

By this time next week, it’s even possible the stock market and banking system will be shut down – and some form of martial law imposed as you just heard Gerald Celente forecast.

The good news is that while deflation scares tend to be sudden and severe, they are ultimately short-lived. Deflation will never be allowed to persist for long while our inflationary fiat monetary system remains in place.

The old adage, “Don’t fight the Fed” is worth heeding.

The last deflation scare in 2008 led to Zero Interest Rate Policy, Quantitative Easing, and unprecedented Fed balance sheet expansion. The Fed is set to do all that and more this time around – possibly even buying up shares in U.S. companies and monetizing Americans’ tax bills.

The current turmoil in markets – and the central bank response – will create generational buying opportunities in beaten-down assets.

Those who hold gold and cash will be the real winners because their purchasing power is dramatically increasing versus virtually everything else now on the chopping block.

While Wall Street cheerleaders will scream about buying opportunities in U.S. stocks as they do on every down day, the greatest buying opportunities may be in overlooked markets such as silver.

On Thursday, the white metal fell to a historically low discount versus gold as the gold:silver ratio spiked to 100:1.

This extreme reading reflects just how stretched the deflation trade has now become. While gold is often thought of as an inflation hedge, it is actually better viewed as a crisis hedge. Once the crisis fades and markets reinflate, other hard assets can be expected to begin vastly outperforming gold.

At some point – and it could be any day now – the deflation/inflation dynamic will swing violently in the opposite direction. And when it does, silver is likely to be a prime beneficiary. Once a new bull market in silver and other inflation-correlated assets gets going, it can run for years.

So as painful as the past month has been for investors, it sets the stage for the next great inflationary mega trend that will last for many, many months to come.

Money Metals Exchange and its staff do not act as personal investment advisors for any specific individual. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. Readers and customers should be aware that, although our track record is excellent, investment markets have inherent risks and there can be no guarantee of future profits. Likewise, our past performance does not assure the same future. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing through Money Metals, you understand our company not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. This Website is provided “as is,” and Money Metals disclaims all warranties (express or implied) and any and all responsibility or liability for the accuracy, legality, reliability, or availability of any content on the Website.

Best Binary Options Brokers 2020:
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    Binarium

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