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IMPORTANT UPDATE AND WARNING:

We have recently received complaints and read many negative reviews on the internet about regulated binary options brokers using indecent practice towards traders. Although some binary brokers may be regulated, we do not recommend opening a trading account with ANY broker, be it a regulated broker or a non regulated broker, as THEY ALL seem to be unethical and non-trustworthy, even the regulated ones! If you have been scammed by such a company you can check out our RECOVER FUNDS FROM BINARY SCAMS section.

Also, instead of trading binaries which are mostly scams, you can trade with a trustworthy and popular FOREX broker such as FXORO.



Italian Financial Regulator CONSOB – Binary Options Regulating

Italian Financial Regulator

Binary options brokers in Europe are mostly regulated by CySEC, the Cyprus regulator and in some countries such as France, there is an all out ban on binary options. From what we have learned up until today the CONSOB (Italy, Commissione Nazionale per la Societá e la Borsa) has not licensed any binary options brokers as of yet to legally solicit clients from the Italian traders and consumer pools. The Italian regulators including CONSOB and the Italian governmental bodies have taken a stance which is much like Asia and Canada, where the regulator does not regulate the industry and instead adds names of brokers to a compiled blacklist, although these brokers on the blacklist may be regulated and licensed in other countries, they are not licensed to solicit customers in Italy.

Some of the FX and Binary Options brokers that were added to the Italian financial regulator blacklist this week:

  • MarketsTheWorld Limited
  • www.finalalgo.com
  • www.europroftrader.com
  • www.trading30elode-it.com
  • www.trading30elode-ita.com

So is CONSOB Actually Helping to Regulate or Not?

In our opinion, regulators (such as Canada and Asia) that do not regulate the market and instead only post warnings and compile black-lists are not helping to tame the wild west of the binary options industry, they are not really helping in anything at all, they are just “trying” to let their local consumer pools with “awareness” but the truth is that no one really reads these warnings that they post on their website [http://www.consob.it] and the only way for the CONSOB to really help their local consumers is by licensing and regulating a few brokers to legally trade binary options in Italy.

When a number of brokers are licensed and regulated, the consumers that want to trade binary options go to those brokerages for trading, the consumers are protected by the regulative body and the broker has to adhere to the laws or face a fine or have their license revoked and their name tarnished. Binary Options are seen as an exotic high potential and high risk trading tool, by many international financial regulators and investment bodies and should be treated as such by the Italian regulator CONSOB – with serious licensing and regulation.

Should You Stay Away From the brokers on the CONSOB Blacklist?

Probably yes, you should stay away from them. If you are an Italian trader and you want to trade binary options then you are in sort of an ordeal here. As the Italian financial regulators have not taken the responsibility of regulating the industry in Italy, there is no such thing as regulated binary options in Italy, but on the other hand binary options are not illegal in Italy as there is no current ban in place from CONSOB against binary options. This means that the only way of trading, without risk of being scammed by a un-ethical broker, is by trading at your own risk with an offshore regulated broker that still accepts traders from Italy.

There are many brokers that are regulated by highly trustworthy financial regulative bodies outside of Italy such as the Belize IFSC or Cyprus CySEC and even the Australian ASIC or USA CFTC. Being licensed and regulated by an authoritative financial regulator does not promise %100 trustworthiness for any broker and many financial institutions and companies that are licensed and regulated turn out to be unethical or fraudulent schemes every year around the world, but still it is a lot safer then dealing with a company or institution that is not licensed and regulated at all.

If you are an Italian trader it is probably best to wait until the Italian financial regulator takes responsibility and licenses a few trustworthy brokers, before you choose to trade in binary options. This way if you find that the broker has used any indecent practice towards you, you can easily contact your local regulator and make a complaint, without having to deal with regulators from abroad as some traders end up doing in some cases of indecent practice from a broker that is regulated by an offshore financial body.

Complaints about unsolicited calls from binary options brokers or about scam / fraud or indecent practice can be made officially to CONSOB on the page in this link.