Perhaps one of the most common problems with investing in binary options is that anybody can adopt the name of “trader” and set out to sell commodities. While there are regulations in place and legitimate traders should be registered with Forex, the truth is that most investors never check the background of the traders they’re dealing with.
The result? Lots of unregistered companies that aren’t operating within the laws and regulations of a specific country or that are conducting their business fraudulently. For the investor, this could spell out disaster and end up costing a lot of money.
This was the reason for a Japanese Financial Services Agency announcement that hit the news recently. The announcement, which also included a full list of unregistered companies to avoid, was meant as a warning move to those searching for binary options investment opportunities. It listed not only unregistered companies but also those that have been found to engage in fraudulent business conduct (everything from unfair contract wording to straight scams).
What the Warning Means
The goal of the JFSA announcement was to help educate the public about binary options brokerages that aren’t up to par and could end up causing serious financial difficulties for those involved, while at the same time providing legitimate options investors can pursue.
One of those options is now available thanks to Tradologic, a binary options platform solution provider. The idea behind Tradologic – which has already partnered with FX Trade Financial – is to become a central platform where all binary options traders can operate. Because traders will be monitored and pre-screened before joining, it means that anybody operating through Tradologic will meet all Japanese trading regulations, ensuring a safer process for everybody involved.
Tradologic also offers a number of unique trading financial instruments and technologies, such as Double (which allows investors to double a bet), Binary 100 (which allow traders to predict whether a certain event will occur or not), MultiX (simultaneous trading), Extend (which allows to roll over commodities and buy extra time), and more.