Binarium – Is It a Scam?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
Binarium - DO NOT TRADE WITH THIS PROVIDER
3.2/10
$100
Minimum Depositupdated 2020
Binarium is a broker that offers trading in binary options via a web-based platform. While the website itself doesn’t really give much information about the account types available, when you sign-up, you get to choose from 5 different account types.
The basic account is called the Start, which has a minimum deposit requirement of $5, has a minimum trade size of just $1 and has a payout of as much as 90%. The other accounts are the Standard (with a minimum deposit requirement of $100), Business (with a minimum deposit of $50), Premium (with a minimum deposit of $2,000) and VIP (with a minimum deposit of $5,000).
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://binarium.com/
Founded: 2010
Regulations: Unregulated
Languages: English, German, Russian, Turkish, Thai, Vietnamese, Italian, Polish, Spanish, Ukrainian
Deposit Methods: Visa, MasterCard, Bank Wire, Neteller, Yandex, QIWI, WebMoney.
Minimum Deposit: $5
Free Demo Account: Yes
Number of Assets: N/A
Types of Assets: Currencies, Cryptocurrencies, Commodities
Trading Accounts and Conditions
Binarium is a broker that offers trading in binary options via a web-based platform. While the website itself doesn’t really give much information about the account types available, when you sign-up, you get to choose from 5 different account types.
The basic account is called the Start, which has a minimum deposit requirement of $5, has a minimum trade size of just $1 and has a payout of as much as 90%. The other accounts are the Standard (with a minimum deposit requirement of $100), Business (with a minimum deposit of $50), Premium (with a minimum deposit of $2,000) and VIP (with a minimum deposit of $5,000).
Upon going through the trading terms, we found nothing that was seriously alarming, which is something that makes this broker seem legitimate.
Binarium – Advantages
Here are the advantages of trading on Binarium:
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High Payouts
When we checked the EURUSD binary option, we found that the payouts reached as high as 90%, which is quite high by industry standards, and beneficial for traders.
The Turbo options offer even higher returns.
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Low Minimum Deposit Requirement and Bet Size
Binarium allows you to start trading with a minimum deposit of just $5, which is actually one of the lowest amounts in the industry. The minimum bet size of $1 is also one of the least in the market. This is a big plus, as it means that you can manage risk much better.
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Demo Account Available
Binarium offers a demo account to its clients so that you can test the trading conditions before you start putting in money. This is another big plus, since binary options brokers generally don’t offer this facility.
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Range of Deposit and Withdrawal Options
Binarium offers its clients a range of deposit and withdrawal options. It supports the standard credit and debit options of MasterCard and Visa and traditional bank wire transfers. It also supports alternate options such as Neteller, WebMoney, Yandex and QIWI.
When we inspected the payment methods, we found nothing troubling about the broker’s offerings.
Binarium – Disadvantages
While Binarium has a number of great advantages, there are some serious disadvantages that make us a little wary of this broker. Here is the list:
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Unregulated
The biggest issue we have with Binarium is that it is not regulated. The broker states on its website that it is owned and operated by a company called Binarium Ltd. This company is registered in St. Vincent and the Grenadines (SVG), but also has offices in Cyprus, Latvia and Ukraine.
The problem is that brokers in SVG need only to register with the local Financial Services Authority (FSA), which clearly states that it does not regulate binary options brokers.
While the company has claimed to have offices in various European countries, this claim is in all probability false, since binary options trading is not permitted in the EU.
Brokerages that operate in the European Union are subject to stringent regulations, and those that are not being regulated by financial agencies are basically operating illegally in the region.
Regulated brokers are required to have substantial capital adequacy requirements, ensure that their clients’ funds are kept separate from the broker’s, issue regular reports of all transactions on their platforms, provide their customers with negative balance protection, and so on.
Since unregulated brokers do not offer any of these facilities, your investments are actually susceptible to substantial risk. And since Binarium is proven to be an unregulated broker, we would advise you not to trade with Binarium.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
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CNMV Blacklist
Binarium has been blacklisted by the CNMV (Comision Nacional del Mercado de Valores), the Spanish financial regulatory authority, as a possible scammer.
This is because the broker offers trading options in European countries – including Spain – but it is not regulated in any way under any EU nation’s laws. What this basically means is that Binarium is operating illegally in these countries.
Thus, it would be best if you not invest your money with this broker.
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Simplistic Trading Platform
It is common for binary options brokers to offer a simplistic web-based trading platform, and Binarium is no exception.
It has to be said that the broker’s trading interface is easy to use and is equipped with several market indicators. However, it is very simplistic and does not have the more advanced tools that other platforms such as the MetaTrader 4 support, such as automated trading, charting options or even analytics tools to assess the markets.
Conclusion
The challenge with Binarium is that there are a number of things that it does right. It’s terms of trade are very trader-friendly. It offers a range of deposit and withdrawal options that are above-board. It has high payouts and low bets, and it offers its customers a demo account to try practice before they put in real money.
However, there are some serious red flags because of which we would strongly advise you not to trade with Binarium. The broker claims to have trading offices in different countries in Europe, but it is not regulated by a single European financial authority.
This in itself would be worrisome, but the seriousness of the situation is made worse because the broker has been blacklisted by the Spanish financial authority, the CNMV, as a possible scammer.
Therefore, despite the fact that this broker does have some really great advantages, the fact that it is not operating legally is a huge warning to all traders to stay away from Binarium.
Binarium
Pros
- High Payouts
- Low Minimum Deposit Requirement
- Low Bet Size
- Availability of Demo Account
- Range of Deposit and Withdrawal Options
Cons
- Lack of Regulation
- Blacklisted by CNMV
- Simplistic Trading Platform
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
eToro is a multi-asset platform which offers CFD and non CFD products. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
2 comments
The NFA does not regulate binary trading (yet), and most binary options brokers worldwide are unregulated. The few who are regulated are generally based in Cyprus and are regulated by Cysec. These brokers may or may not be the best ones, so you will need some other criteria to help you make your choice and avoid binary trading scams
Check into how well capitalized a broker is before you sign up with a company. A well capitalized company is much less likely to lose your money than one which has plenty of money for operations. Even though binary options brokers aren’t regulated like FX brokers right now, you can still find out whether a broker has $20 million in capital by checking with the Commodity Futures Trading Commission (CFTC).
European financial authority has not regulated this scam, I didn’t see it since they claim to have offices apparently in different countries in Europe. lost a lot of money to this scam. I feel like an idiot.