It has been said by the leading binary options platform providers that yearly trade volume of binary options is at least $8 billion.
Regulator Fines Versus Yearly Trade Volume
It is kind of like the film, and true story, “The Wolf of Wall-street“, where the Hero of the story makes hundreds of millions and only pays a few millions in fines in the end. But in our true story today we have hundreds if not thousands of online brokers.
The yearly trading volume is at least $8 billion per year, lets speculate here and say that the binary options markets are bringing in at least $1 billion per year in profits to binary options brokers. The fines being given to some of these brokers all in all is less than $20 million (altogether), including the latest fines by CySEC and the CFTC. No one we know of has gone to jail as of today. So all in all the fines accumulate to less than %2 of the market profits being made by brokers, many of whom use the “deposit only” method. Meaning traders can deposit and make trades, but will never be able to withdraw their money.
In a recent email conversation with Bill the forum manager at “ForexPeaceArmy.com” Bill stated stated:
“If only someone would point out to the brokers that robbing their clients is the cause of the problem. We all know BO is gambling and the odds are stacked heavily in the house’s favor. There’s no reason not to have happy clients who can deposit and withdraw at will.“
Bill from ForexPeaceArmy.com is probably right. But when you look at these numbers you think that nothing will change unless regulation becomes stricter or until binary options are banned altogether. There is a void here and when you ban binary options the unregulated brokers quickly fill that void. The void needs to be filled with strict regulation and better public awareness, instead of bans.