Who Controls Binary Trading?

Executive Summary

This report provides a comprehensive analysis of the control and regulatory landscape governing binary options trading globally. It finds that no single worldwide entity controls this market; instead, oversight is fragmented, exercised by various national and regional financial regulators. A dominant global trend, particularly evident in major jurisdictions such as the European Union, the United Kingdom, and Australia, involves the outright banning or severe restriction of binary options for retail investors. These actions stem from widespread consumer harm, significant documented financial losses, the inherent structural flaws of the product, and pervasive fraud associated with its offering.

The United States presents a notable exception to the trend of outright bans. While binary options are legal, they are strictly confined to trading on specific exchanges designated and overseen by the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC). Any offering of binary options outside these regulated venues to US residents is illegal and constitutes a primary focus of regulatory enforcement actions against fraud.

The inherent risks associated with binary options are substantial. The “all-or-nothing” payout structure, coupled with extremely short contract durations, aligns the product more closely with gambling than traditional investment. Analyses by regulatory bodies consistently reveal high loss rates among retail participants and a negative expected return, suggesting a structural bias against client success. These risks are significantly amplified by the prevalence of unregulated, often offshore, brokers who engage in fraudulent practices, including fund misappropriation, identity theft, and manipulation of trading platforms.

Given this landscape, investor protection relies heavily on preventative measures. Where trading is legally permitted, it must occur exclusively through regulated channels. Extreme caution and thorough due diligence are paramount due to the high potential for financial loss and the persistent threat of scams, particularly from entities operating outside established regulatory frameworks.

related posts : Best Binary Options Brokers (in 2025)

I. Understanding Binary Options Trading

A. Definition and Core Characteristics

A binary option is a type of financial derivative contract where the payoff depends entirely on the outcome of a simple ‘yes/no’ proposition.¹ This proposition typically relates to whether the price of an underlying asset (which can include stocks, commodities, currencies, indices, or even specific events ³) will be above or below a predetermined level (the strike price) at a specific point in time (the expiration).¹ The contract duration is often very short, with expirations ranging from mere minutes or hours to days or weeks.⁴

The defining feature is the “binary” or “all-or-nothing” payout structure.¹ If the trader’s prediction about the price movement relative to the strike price is correct at expiration (the option expires “in-the-money”), they receive a predetermined, fixed payout.¹ If the prediction is incorrect (the option expires “out-of-the-money”), the trader loses their entire investment in the option.⁶ This structure leads to capped risk, limited to the amount invested, and capped potential reward, fixed at the predetermined payout amount.¹ Because of this fixed return nature, they are sometimes referred to as “digital options” or “fixed return options” (FROs).¹¹

The fundamental nature of binary options, characterized by the all-or-nothing payout determined at a precise moment often after a very short duration, distinguishes them significantly from traditional investment approaches. In conventional investing or even traditional options trading, gains and losses typically scale with the magnitude and duration of price movements.⁶ Binary options, however, offer a fixed outcome based solely on a directional bet relative to a specific price level at a specific instant.¹ This structure diminishes the relevance of in-depth fundamental analysis, especially given the ultra-short timeframes involved ⁴, and shifts the focus towards predicting high-frequency price fluctuations. Consequently, regulators and analysts frequently draw parallels between binary options trading and gambling, noting the high degree of chance involved and, often, a negative expected return for the participant over time.³

B. Mechanism of Trading

The process of trading binary options typically involves several steps. A trader selects an underlying asset, predicts whether its price will be above or below a specific strike price at a chosen expiration time, and determines the amount to invest.³ A prediction that the price will be above the strike price involves buying a ‘call’ option, while a prediction that it will be below involves buying a ‘put’ option.⁵

Unlike many other derivatives, binary options typically do not grant the holder the right to buy or sell the underlying asset itself; they are purely speculative contracts on price movement.⁵ At expiration, the option exercises automatically, and the outcome (payout or loss) is credited or debited to the trader’s account based on whether the condition was met.⁶ Settlement is almost always in cash.¹¹

Trading predominantly occurs through internet-based platforms.⁶ While a small number of these platforms operate as regulated exchanges subject to oversight (such as Nadex in the US ⁴), a significant portion of the market, especially outside the US, consists of unregulated or poorly regulated offshore entities.⁶ On regulated exchanges like Nadex, binary option prices (the premium paid by the buyer) typically range between $0 and $100, reflecting the market’s perceived probability of the ‘yes’ outcome occurring.⁶ Trading involves bid and ask prices, with buyers paying the offer and sellers receiving the bid.¹ A key feature of regulated exchanges is that contracts are fully collateralized, meaning both the buyer and seller must post funds to cover their maximum potential loss on the trade, mitigating counterparty risk.⁴

C. Key Differences from Traditional (Vanilla) Options

Binary options differ fundamentally from traditional options, often referred to as “vanilla” options, in several crucial aspects:

• Ownership Potential: Vanilla options (both American and European style) can grant the holder the right, but not the obligation, to buy or sell the underlying asset at the strike price before or at expiration.⁶ Binary options confer no such right; they are purely cash-settled contracts based on a price proposition.⁴
• Payout Structure: The defining feature of binary options is their fixed, all-or-nothing payout.⁶ In contrast, the profit or loss on a vanilla option depends on the difference between the underlying asset’s price and the strike price at the time of exercise or expiration. Potential profits for buyers can be substantial if the price moves significantly in their favor, while losses are typically limited to the premium paid.⁶
• Risk Profile: While buyers of both binary and vanilla options have their risk capped at the initial investment (premium) ⁶, the risk profile for sellers differs. Binary option sellers also have capped risk (the difference between the $100 settlement value and the premium received on regulated exchanges).⁷ Sellers of traditional options, particularly uncovered calls, can face potentially unlimited risk.¹³
• Regulation: Vanilla options predominantly trade on highly regulated exchanges subject to strict oversight (e.g., SEC regulation in the US).⁶ While some binary options are available on regulated US exchanges ¹⁰, much of the global trading, particularly that targeting retail investors outside the US, occurs through online platforms that are often unregulated or registered in jurisdictions with lax oversight, significantly increasing the risk of fraud.⁶
• Complexity and Use: Binary options are often marketed for their apparent simplicity—requiring only a directional forecast.⁴ Vanilla options are inherently more complex, involving factors like time decay, implied volatility, and various “Greeks” (delta, gamma, theta, vega) that influence their pricing and require more sophisticated analysis.¹³ This complexity allows vanilla options to be used for a wider range of strategies, including hedging existing positions and generating income, purposes for which binary options are generally ill-suited.⁵

These structural distinctions are critical. The fixed payout, lack of ownership potential, and typically very short timeframes fundamentally position binary options as instruments primarily suited for high-frequency speculation rather than as tools for investment or strategic risk management in the way traditional options can be employed.⁸ Vanilla options derive value from both intrinsic (in-the-money amount) and extrinsic (time value, volatility) factors, enabling complex strategies.¹³ Binary options’ value is almost entirely linked to the perceived probability of a specific binary event occurring at a precise future moment.³ The absence of the right to exercise early or take possession of the underlying asset removes strategic dimensions available to vanilla option traders.⁶ This leads regulators and market observers to frequently categorize binary options as wagers or bets on market movements rather than conventional investments.³

II. The Global Regulatory Landscape

A. Key Financial Regulatory Bodies by Region

The oversight of financial markets, including derivatives like binary options, is managed by a diverse array of regulatory bodies across the globe. There is no single international authority with universal jurisdiction. Instead, regulation is primarily exercised at the national or, in some cases, regional level. Key regulators in major economic zones include:

• North America:

• United States: The Commodity Futures Trading Commission (CFTC) oversees futures, swaps, and commodity options markets, including binary options based on commodities or offered on designated contract markets (DCMs).¹⁰ The Securities and Exchange Commission (SEC) regulates securities markets, including options on securities and potentially binary options based on securities or offered on registered exchanges.⁷ The National Futures Association (NFA) is a self-regulatory organization (SRO) for the US derivatives industry, operating under CFTC oversight.²³ The Financial Industry Regulatory Authority (FINRA) is an SRO overseeing broker-dealers.³³
• Canada: Securities regulation is handled at the provincial and territorial level (e.g., Ontario Securities Commission (OSC), Alberta Securities Commission (ASC), Autorité des marchés financiers (AMF) in Quebec, British Columbia Securities Commission (BCSC)) coordinated through the Canadian Securities Administrators (CSA).³³ The Investment Industry Regulatory Organization of Canada (IIROC) merged into the New Self-Regulatory Organization of Canada (now CIRO – Canadian Investment Regulatory Organization).³³ Other bodies include the Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada (FCAC).³³
• Europe:

• European Union (EU): Pan-EU authorities play significant roles. The European Securities and Markets Authority (ESMA) works to enhance investor protection and promote stable financial markets, notably possessing product intervention powers.³³ The European Banking Authority (EBA) regulates the banking sector.³³ The European Central Bank (ECB) oversees monetary policy and banking supervision in the Eurozone.³³
• National Regulators (Examples): Germany’s Federal Financial Supervisory Authority (BaFin) ³³, France’s Autorité des Marchés Financiers (AMF) and Prudential Supervision and Resolution Authority (ACPR) ³³, Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) and Bank of Italy ³³, Spain’s Comisión Nacional del Mercado de Valores (CNMV) ³³, Cyprus Securities and Exchange Commission (CySEC) ³⁶, Central Bank of Ireland (CBI) ³³, and the Netherlands Authority for the Financial Markets (AFM) and De Nederlandsche Bank (DNB).³⁷

• United Kingdom: Following its departure from the EU, the primary regulators are the Financial Conduct Authority (FCA), responsible for market conduct, consumer protection, and oversight of most financial firms ²⁰, and the Prudential Regulation Authority (PRA) at the Bank of England, responsible for the prudential regulation of banks and insurers.³³
• Asia-Pacific:

• Australia: The Australian Securities and Investments Commission (ASIC) is the corporate, markets, financial services, and consumer credit regulator.¹² The Australian Prudential Regulation Authority (APRA) oversees banks, insurers, and superannuation funds.³³
• Japan: The Financial Services Agency (FSA) has broad oversight of the financial system ³³, with the Securities and Exchange Surveillance Commission (SESC) focusing on compliance and market surveillance.³⁶
• Hong Kong: The Securities and Futures Commission (SFC) regulates the securities and futures markets ³³, while the Hong Kong Monetary Authority (HKMA) acts as the central banking institution and banking regulator.³³
• Singapore: The Monetary Authority of Singapore (MAS) functions as the central bank and integrated financial supervisor.⁴⁸
• India: The Reserve Bank of India (RBI) is the central bank and regulates banks and foreign exchange ³³, while the Securities and Exchange Board of India (SEBI) oversees the securities market.³³
• China: Key bodies include the China Securities Regulatory Commission (CSRC) and the National Administration of Financial Regulation (NAFR).³⁶
• International Bodies: Organizations like the International Organization of Securities Commissions (IOSCO) play a crucial role in setting global standards (e.g., IOSCO Principles) and fostering cooperation among regulators worldwide, though they lack direct enforcement powers.⁴⁸ The Financial Action Task Force (FATF) focuses on combating money laundering and terrorist financing.⁴¹ The Bank for International Settlements (BIS) serves central banks and promotes financial stability.³³

B. The Fragmented Nature of Control

A critical aspect of binary options regulation is its fragmentation. There is no single global authority that dictates rules or enforces compliance for binary options trading across all jurisdictions.¹² Instead, control is decentralized, residing within the mandates of individual national or regional regulators.³³ This results in a complex and varied global landscape where the legality, regulatory requirements, and level of oversight for binary options differ significantly from one country or region to another.⁶

While international bodies like IOSCO promote convergence through internationally recognized standards and facilitate cross-border cooperation among member regulators ⁵³, they do not possess the authority to directly regulate firms or markets or enforce rules within specific jurisdictions. Their influence stems from standard-setting and peer pressure among member authorities.

This fragmented control structure presents substantial challenges. For investors, navigating the patchwork of differing regulations can be confusing, making it difficult to ascertain the legality of trading in their location and to identify genuinely licensed and reputable brokers amidst a sea of potentially fraudulent operators.⁶ For regulators, the cross-border nature of online binary options trading poses significant enforcement hurdles.²³ Unregulated brokers often establish themselves in jurisdictions with minimal oversight specifically to target residents of countries with stricter regulations, exploiting the limitations of cross-border enforcement actions.²³ Even with cooperative agreements facilitated by bodies like IOSCO, jurisdictional boundaries can impede swift and effective action against offshore entities engaging in illegal activities.⁵³ This environment allows for regulatory arbitrage, where activities banned or heavily restricted in major financial centers (like the EU or UK) might still be accessible to residents through unregulated online channels or legally permissible under different rules elsewhere (like the US regulated exchanges), perpetuating risks for unwary investors.⁶

III. Regulatory Approaches and Legal Status

The fragmented nature of control leads to diverse regulatory approaches towards binary options, particularly concerning retail investors. Key jurisdictions have adopted distinct strategies, ranging from outright prohibition to strictly controlled allowance on regulated venues.

A. United States: CFTC & SEC Oversight

In the United States, binary options are not banned outright but are subject to stringent regulations. Their legality hinges crucially on where they are traded. Binary options are legal only if they are listed and traded on a CFTC-designated contract market (DCM) or an SEC-registered national securities exchange.¹⁰

Historically, the primary CFTC-regulated DCMs offering binary options or similar event-based contracts to retail participants have been the North American Derivatives Exchange (Nadex), Cantor Exchange LP, and potentially certain products on the Chicago Mercantile Exchange (CME) Group.⁴

The jurisdiction is divided:

• CFTC: Primarily regulates binary options based on commodities (such as foreign currencies, metals like gold and silver, energy, agricultural products), interest rates, or other instruments falling under the Commodity Exchange Act (CEA), including swaps.¹⁰ Firms offering or intermediating these products (e.g., Futures Commission Merchants – FCMs) must be registered with the CFTC.¹⁰
• SEC: Oversees binary options based on the price of securities (like individual stocks or ETFs) or narrow-based security indices.¹⁰ Such binary options may themselves be classified as securities under federal securities laws. If so, their offer and sale must be registered with the SEC unless an exemption applies.¹⁰ Platforms facilitating trading in security-based binary options might need to register with the SEC as a national securities exchange or as a broker-dealer.¹⁰

Crucially, any entity soliciting or accepting orders from US residents for binary options outside of these CFTC- or SEC-regulated exchanges is operating illegally.⁶ The CFTC actively pursues enforcement actions against such illegal off-exchange operations, many of which are based overseas and target US customers fraudulently.⁶¹ The CFTC also maintains a Registration Deficient List (RED List) to warn the public about unregistered foreign entities believed to be soliciting US residents illegally.²³

The US regulatory model, therefore, does not prohibit the product itself but focuses intensely on controlling the trading environment. Legality is determined by the venue’s regulatory status under CFTC or SEC rules. This approach establishes a clear demarcation: trading on designated, regulated US exchanges is permitted, while engaging with the numerous off-exchange, often internet-based platforms soliciting US customers is illegal and fraught with risk. This venue-centric approach allows for innovation within a regulated framework, as demonstrated by the existence of exchanges like Nadex ²⁴, while simultaneously empowering regulators to aggressively target the widespread fraud emanating from the unregulated offshore market.¹⁰

B. European Union: ESMA’s Role and National Bans/Restrictions

The European Union adopted a more restrictive stance towards binary options for retail clients. Spearheaded by the European Securities and Markets Authority (ESMA), the EU implemented a temporary, union-wide prohibition on the marketing, distribution, and sale of binary options to retail investors, effective from July 2, 2018.²⁰ This was one of the first major uses of ESMA’s product intervention powers granted under the Markets in Financial Instruments Regulation (MiFIR).⁴⁰

ESMA’s decision was driven by significant investor protection concerns arising from multiple factors: the inherent complexity and lack of transparency of binary options; their structural features leading to a negative expected return for clients; embedded conflicts of interest where providers often profit from client losses; aggressive marketing tactics employed by many firms; and substantial, documented evidence of high loss rates among retail clients across the EU, with studies indicating that between 74% and 89% of retail accounts lost money.¹⁹

The initial temporary ban was renewed several times by ESMA, typically in three-month increments as permitted under MiFIR.⁴⁰ Some later renewals introduced narrow exclusions for specific types of binary options deemed lower risk, such as those fully collateralized by the client’s payment, having long maturities (e.g., 90+ days), being accompanied by an approved prospectus, and not exposing the provider to market risk (effectively being fully hedged).⁴⁰

As the temporary ESMA measures eventually lapsed, numerous EU national competent authorities (NCAs) took steps to make the prohibition permanent within their own jurisdictions. Regulators in countries like France (AMF) ⁴³, Ireland (Central Bank of Ireland) ²², Germany (BaFin) ⁷⁴, and others adopted national product intervention measures that effectively continued or replicated the ESMA ban on a permanent basis.⁴³ Notably, Belgium had already prohibited binary options trading even before the ESMA intervention.⁵⁶ These bans generally apply specifically to retail clients; professional clients, under MiFID classification, may still be permitted to trade these products in some circumstances.⁴⁰

The EU’s approach, coordinated initially by ESMA and then solidified through national actions, reflects a strong regulatory consensus that binary options, as typically offered to the retail market, pose an unacceptable level of risk and are unsuitable for retail investors due to widespread evidence of harm. The progression from temporary EU-wide measures to permanent national bans underscores a decisive regulatory judgment against the product itself for this client segment, contrasting with the US focus on regulating the trading venue.

C. United Kingdom: FCA’s Permanent Ban

The UK’s Financial Conduct Authority (FCA) adopted a similarly prohibitive stance, implementing a permanent ban on the sale, marketing, and distribution of all binary options to retail consumers. This ban, effective from April 2, 2019, applies to all firms acting in or from the UK.¹⁸

The FCA’s rationale closely mirrored ESMA’s findings and the conclusions of its own consultations.⁷⁰ The regulator cited widespread concerns about the inherent risks embedded in the product structure, the poor conduct observed among firms selling them (including aggressive and misleading marketing), and the resulting significant harm to consumers through large and unexpected trading losses.²⁰ The FCA explicitly characterized binary options as “gambling products dressed up as financial instruments” and deemed them “inherently flawed” for retail use.¹⁸

Importantly, the FCA’s permanent ban is comprehensive and arguably stricter than ESMA’s final temporary measures. It explicitly includes ‘securitised binary options’ – those potentially listed on exchanges, backed by a prospectus, and having longer terms – which ESMA had excluded from its later renewal decisions.²⁰ The FCA included these to prevent firms from circumventing the ban by structuring products slightly differently while retaining the core harmful characteristics.²⁰

The FCA estimated that its permanent ban would protect UK retail consumers from significant financial harm, potentially saving them up to £17 million annually in losses, and would also help reduce the prevalence of investment fraud perpetrated by unauthorized entities falsely claiming to offer binary options.²⁰ Consequently, the FCA warns that any firm currently offering binary options services to retail consumers in or from the UK is highly likely to be operating a scam.²⁰

The UK’s decisive action to implement a permanent and all-encompassing ban reinforces the regulatory judgment within a major global financial center that binary options lack legitimate investment value for retail clients and primarily function as a vehicle for consumer detriment and fraud. This move solidified the prohibitionist approach seen across Europe.

D. Australia: ASIC’s Ban

The Australian Securities and Investments Commission (ASIC) has also taken strong action against binary options for retail clients. Following reviews and consultations that revealed significant consumer harm, ASIC implemented a product intervention order banning the issuance and distribution of binary options to retail clients, effective from May 3, 2021.¹²

ASIC’s decision was heavily influenced by data showing substantial losses incurred by Australian retail traders. Reviews conducted in 2017 and 2019 indicated that approximately 80% of retail clients lost money trading binary options.⁴⁷ ASIC quantified these losses, estimating aggregate net losses for retail clients at around AUD $490 million in 2018 alone, and AUD $14 million in the 13 months immediately preceding the ban’s implementation.⁴⁷

The regulator concluded that the inherent characteristics of binary options—including their complexity masked by apparent simplicity, very short contract durations (averaging less than six minutes with one provider studied), and negative expected returns—made them incompatible with genuine investment or risk management needs for retail clients.⁴⁷

Initially imposed for 18 months, ASIC has since extended the ban significantly, ensuring it remains in effect until at least October 1, 2031.⁵¹ This long-term extension underscores ASIC’s firm stance and commitment to protecting retail investors from what it deems a harmful product category. ASIC noted that this ban aligns Australia’s regulatory position with that of other comparable major markets, such as the EU and the UK.⁴⁷

ASIC’s approach, characterized by thorough investigation, quantification of consumer detriment, public consultation ⁴⁷, and the decisive use of its product intervention powers ⁴⁷, followed by a long-term ban extension, highlights a strong regulatory focus on consumer protection over facilitating market access for products demonstrated to cause widespread harm.

E. Other Key Jurisdictions & Summary Table

Regulatory approaches in other parts of the world vary:

• Canada: Binary options trading is effectively banned for retail investors nationwide. While securities regulation is provincial, numerous provincial regulators, coordinated under the Canadian Securities Administrators (CSA), have issued orders prohibiting the advertising, offering, selling, or trading of binary options with expiries of less than 30 days. No brokers are licensed to legally offer binary options in Canada.¹²
• Japan: Binary options trading is legal but subject to specific regulations enforced by the Financial Services Agency (FSA) and the Securities and Exchange Surveillance Commission (SESC). Brokers must adhere to strict guidelines.⁵¹
• India: The situation is ambiguous, often described as a legal grey area. The Reserve Bank of India (RBI) prohibits residents from remitting funds for online forex trading and binary options through platforms not authorized under the Foreign Exchange Management Act (FEMA). The RBI maintains an “Alert List” of unauthorized platforms. While not explicitly banned by a single financial market regulator, participation via unauthorized channels is illegal under FEMA and carries risks of penalties.⁵¹
• Israel: Following extensive investigations that uncovered large-scale fraudulent operations targeting international clients from within Israel, the country enacted a complete ban on binary options. This ban prohibits not only the sale to Israelis but also the operation of marketing centers targeting clients abroad.¹²
• South Africa: Binary options trading is reported to be explicitly allowed, potentially under the oversight of the Financial Sector Conduct Authority (FSCA), although the regulatory stringency might differ from major markets.⁵⁶
• Singapore: Trading is permitted and regulated by the Monetary Authority of Singapore (MAS), which advises traders to use MAS-regulated brokers.⁵¹

The following table summarizes the regulatory status for retail investors in these selected jurisdictions:

Jurisdiction	Key Regulator(s)	Status for Retail Investors	Key Restrictions/Notes
United States	CFTC, SEC	Legal (Restricted)	Must be traded on CFTC/SEC-regulated exchanges (e.g., Nadex); off-exchange offering/solicitation is illegal.
European Union	ESMA / National Regulators (e.g., BaFin, AMF, CySEC)	Banned	Permanent national bans implemented by most member states following temporary ESMA measures.
United Kingdom	FCA	Banned	Permanent ban covering all types, including securitised binary options.
Australia	ASIC	Banned	Product intervention order banning issue and distribution extended until October 2031.
Canada	Provincial Regulators (CSA members)	Banned	Effectively banned via provincial orders prohibiting offering/sale; no licensed dealers.
Japan	FSA, SESC	Legal (Regulated)	Permitted under specific regulations and oversight.
India	RBI, SEBI	Restricted (Legal Grey Area)	Prohibited via unauthorized platforms under foreign exchange laws (FEMA); RBI Alert List; high risk of illegality.
Israel	ISA	Banned	Complete ban, including marketing operations targeting overseas clients.
South Africa	FSCA	Legal (Regulated)	Explicitly allowed for trading, regulatory details may vary.
Singapore	MAS	Legal (Regulated)	Permitted under MAS regulation; use of regulated brokers advised.

This table clearly illustrates the diverse global regulatory responses to binary options, ranging from prohibition in many developed markets to regulated allowance in others, highlighting the lack of a unified global approach and reinforcing the theme of regulatory fragmentation.

IV. Risks, Fraud, and Investor Protection

Binary options trading carries significant risks, particularly for retail investors. These risks stem from the inherent structure of the product itself and are compounded by the prevalence of fraudulent activities, especially within the unregulated segments of the market.

A. Inherent Risks for Retail Investors

Several fundamental characteristics of binary options contribute to their high-risk profile:

• Gambling Nature: The all-or-nothing payout structure, combined with short expiration times, closely resembles a gambling wager rather than a traditional investment.³ The short durations often encourage frequent, speculative trading akin to betting.⁴
• High Documented Loss Rates: Regulatory bodies in multiple jurisdictions (including ESMA, ASIC, and various NCAs) have conducted reviews consistently showing that a large majority of retail clients—often between 74% and 89%—lose money when trading binary options.¹⁶
• Negative Expected Value: The typical payout structure, where a winning trade returns less than 100% of the investment (e.g., 70-90% profit) while a losing trade results in a 100% loss of the invested amount, creates a negative mathematical expectation for the trader over the long run.⁸ This means that, statistically, the odds are stacked in favor of the broker or platform, particularly as they often act as the direct counterparty to the client’s trade and thus benefit directly from client losses.⁷⁴ ESMA’s analysis confirmed this negative expected return.¹⁹
• Complexity Misperception: While marketed as simple (‘just predict up or down’), accurately pricing binary options and consistently predicting short-term price movements requires a sophisticated understanding of probability and market dynamics, which is challenging even for experienced traders, let alone novices.⁴ There is significant information asymmetry favoring the provider.⁷⁴
• Volatility Risk: The very short-term nature of many binary options means that random market ‘noise’ or minor, unpredictable fluctuations can easily cause an option to expire out-of-the-money, even if the trader correctly predicted the asset’s broader directional trend over a slightly longer period.⁴

The convergence of these factors—a structure akin to gambling, statistically unfavorable odds (negative expected value), high documented failure rates among retail participants, and a misleading perception of simplicity—strongly indicates that binary options, particularly as offered through many online platforms, are fundamentally structured in a way that disadvantages retail clients. This inherent bias against client success forms a core part of the justification used by regulators like the FCA and ASIC for implementing outright bans, deeming the product inherently harmful to retail investors.²⁰

B. Fraudulent Practices via Unregulated Brokers

The risks inherent in binary options are massively amplified by the widespread fraud perpetrated primarily through unregulated, internet-based trading platforms, many operating from offshore jurisdictions.⁶ These platforms are the source of numerous complaints received by regulators like the CFTC and SEC.¹⁰ The FBI has also investigated extensive binary options fraud, estimating global losses in the billions of dollars annually.¹²

Common fraudulent schemes identified by regulatory and law enforcement agencies include ¹⁰:

• Refusal to Credit Accounts or Reimburse Funds: Platforms accept deposits but then block or ignore withdrawal requests, cancel payout requests, or freeze accounts under false pretenses.¹⁰
• Identity Theft: Operators solicit excessive personal and financial information (credit card details, passports, utility bills) under false pretenses, which is then used for identity theft or other illicit purposes.¹⁰
• Manipulation of Trading Software: Platforms rig the trading outcomes against the client. This can involve manipulating price feeds, altering payout ratios, or extending the expiration time of winning trades until they become losses.¹⁰
• Misleading Marketing and False Promises: Aggressive sales tactics, often via social media, spam emails, or unsolicited calls, promise unrealistic high returns, low risk, or expert guidance.¹⁸ Fake testimonials and endorsements are common.¹²
• Deceptive Bonus Offers: Bonuses are offered to entice deposits but come with undisclosed or impossible-to-meet trading volume requirements that prevent withdrawal of any funds.²³

These scams often target individuals perceived as unsophisticated investors, attracted by the apparent simplicity of binary options and the promise of quick profits.²⁷ The ease with which online platforms can be established, combined with their operation from offshore jurisdictions with weak regulation and enforcement, creates an environment where fraudulent operators can thrive with relative impunity.¹⁰ Recovering funds lost to such entities is extremely difficult for both victims and regulators.²³ The consistent warnings from multiple agencies and the recurring patterns of reported fraud indicate that this is not merely isolated misconduct but a systemic issue within the unregulated binary options space, enabled by the product’s nature, online accessibility, and the challenges of cross-border regulation.

C. Investor Protection Measures

Given the significant risks and prevalence of fraud, investor protection in the binary options sphere relies heavily on preventative strategies and regulatory oversight where it exists. Key measures include:

• Trading Exclusively on Regulated Exchanges: In jurisdictions where binary options are permitted for retail trading, such as the US, the single most important protective measure is to trade only through exchanges that are fully regulated and designated by the relevant authorities (CFTC or SEC).⁶ Unregulated platforms should be avoided entirely.
• Example – Nadex (US): As a CFTC-regulated DCM, Nadex operates under a framework designed to offer certain protections. These include adherence to a comprehensive rulebook ⁸⁸, market surveillance to detect manipulation ⁹⁰, requirements for full collateralization of trades by both buyer and seller ⁴, minimum financial standards for clearing members ³¹, and rules requiring segregation of customer funds (though these funds are not insured against trading losses or firm insolvency in the same way bank deposits or securities accounts are).³⁴ Nadex rules prohibit third-party brokers from trading on behalf of clients; members must trade their own accounts.²⁴ Nadex’s operations and rules are subject to CFTC review and oversight.³¹
• Thorough Due Diligence: Before depositing funds or trading with any platform or intermediary, investors must verify their registration status and disciplinary history using official resources provided by regulators:

• Checking the CFTC’s list of Designated Contract Markets.¹⁰
• Using the SEC’s EDGAR database for product registrations and its website for registered exchanges.¹⁰
• Consulting the NFA’s Background Affiliation Status Information Center (BASIC) for registration details and disciplinary actions against firms and individuals in the US derivatives industry.¹⁰
• Reviewing the CFTC’s RED List of unregistered foreign entities suspected of illegally targeting US residents.²³

• Skepticism Towards Promises: Investors should be inherently skeptical of promises of high, easy, or guaranteed returns, aggressive sales tactics, and unsolicited investment offers.¹⁸ A fundamental principle is to never invest in something one does not fully understand.²⁸
• Understanding Fund Security Limitations: While regulated FCMs in the US are required to segregate customer funds ³⁴, this protection is primarily against the firm’s misuse of funds or insolvency. It does not protect against trading losses incurred by the client. Furthermore, in the event of a firm’s failure and a shortfall in segregated funds, customers may not recover 100% of their account value.³⁴ Unlike securities accounts covered by SIPC, there is no equivalent government-backed insurance fund for futures or options accounts.³⁴
• Limited Recourse and Restitution: While regulators like the CFTC may pursue enforcement actions against fraudulent operators and seek restitution for victims ⁶¹, recovering funds, especially from entities operating offshore, is often challenging and may result in only partial or no recovery for victims.⁹³ In some specific, large-scale fraud cases (like Banc de Binary), a court-appointed monitor such as the NFA may administer a restitution fund, but this is not a standard compensation mechanism.⁹³
• Whistleblower Programs: The CFTC operates a whistleblower program that incentivizes individuals to report violations of commodity trading laws, potentially leading to monetary awards.⁶¹

The available investor protection mechanisms underscore the critical importance of prevention. Because remedies after fraud has occurred are often inadequate or unavailable—particularly concerning unregulated offshore entities—the primary line of defense for investors is to engage only with fully regulated entities within jurisdictions where binary options are legally permitted, and to conduct rigorous due diligence before committing any funds. The onus falls heavily on the investor to avoid the pitfalls of the unregulated market.

V. Conclusion

The control of binary options trading is not centralized but resides within a fragmented global landscape of national and regional financial regulators. No single entity governs the market worldwide. Key authorities like the CFTC and SEC in the United States, the FCA in the UK, ASIC in Australia, and national regulators across the European Union (previously guided by ESMA) exercise oversight within their respective jurisdictions.

Outside the United States, the dominant regulatory trend has been towards prohibiting the sale, marketing, and distribution of binary options to retail investors. Jurisdictions including the EU, UK, Australia, and Canada have implemented bans, citing significant consumer harm, high loss rates documented through reviews, the product’s inherent complexity and structural flaws (such as negative expected value), and its frequent comparison to gambling rather than legitimate investment. These regulators have concluded that the risks posed to retail clients outweigh any potential benefits.

The US stands as a significant exception, permitting binary options trading for retail clients but only under strict conditions: trading must occur on exchanges designated and regulated by the CFTC or SEC. This venue-based approach allows for legal trading within a controlled environment while simultaneously deeming all off-exchange binary options activities targeting US residents as illegal. US regulators actively pursue enforcement actions against these illegal, often fraudulent, off-exchange operations.

Despite regulatory actions, significant risks persist. The inherent structure of binary options makes them highly speculative and statistically disadvantageous for most retail participants over time. Furthermore, the market remains plagued by fraudulent activities, overwhelmingly originating from unregulated online platforms operating offshore. These entities employ deceptive tactics, including fund theft, identity theft, and platform manipulation, exploiting the product’s nature and the challenges of cross-border enforcement.

Therefore, extreme caution is imperative for anyone considering binary options. For retail investors in many major markets (EU, UK, Australia, Canada), the product is simply banned. Where legally permissible, such as on regulated US exchanges, trading should only ever be undertaken after comprehensive due diligence verifying the platform’s regulatory status and a full understanding of the profound risks involved. The potential for substantial financial loss and exposure to sophisticated fraud remains exceptionally high, particularly when dealing with any entity operating outside the established and verifiable regulatory frameworks.

Download PDF

Works cited

1. www.investopedia.com, accessed on April 19, 2025, https://www.investopedia.com/articles/active-trading/061114/guide-trading-binary-options-us.asp#:~:text=Binary%20options%20are%20based%20on,which%20option%20is%20more%20likely.
2. www.cftc.gov, accessed on April 19, 2025, https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/fraudadv_binaryoptions.html#:~:text=A%20binary%20option%20is%20a,fall%20below%20a%20specified%20amount.
3. The Most Important Technical Indicators for Binary Options – Investopedia, accessed on April 19, 2025, https://www.investopedia.com/articles/active-trading/022615/most-important-technical-indicators-binary-options.asp
4. Trading Forex With Binary Options – Investopedia, accessed on April 19, 2025, https://www.investopedia.com/articles/forex/022415/trading-forex-binary-options.asp
5. Binary Options Strategies You Should Know – Investopedia, accessed on April 19, 2025, https://www.investopedia.com/articles/active-trading/052014/binary-options-strategies.asp
6. Binary Option: Definition, How They Trade, and Example – Investopedia, accessed on April 19, 2025, https://www.investopedia.com/terms/b/binary-option.asp
7. A Guide to Trading Binary Options in the US – Investopedia, accessed on April 19, 2025, https://www.investopedia.com/articles/active-trading/061114/guide-trading-binary-options-us.asp
8. Currency Binary: What It is, How it Works, Examples – Investopedia, accessed on April 19, 2025, https://www.investopedia.com/terms/c/currency-binary.asp
9. Binary Option: How It Works & Examples – Acquire.Fi, accessed on April 19, 2025, https://www.acquire.fi/glossary/binary-option-definition-how-they-trade-and-example
10. CFTC/SEC Investor Alert: Binary Options and Fraud, accessed on April 19, 2025, https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/fraudadv_binaryoptions.html
11. What is Binary Options? Definition of Binary Options, Binary Options Meaning – The Economic Times, accessed on April 19, 2025, https://m.economictimes.com/definition/binary-options
12. Binary option – Wikipedia, accessed on April 19, 2025, https://en.wikipedia.org/wiki/Binary_option
13. What Is Options Trading? A Beginner’s Overview – Investopedia, accessed on April 19, 2025, https://www.investopedia.com/options-basics-tutorial-4583012
14. Top Binary Options Trading Strategies | Dukascopy Bank SA, accessed on April 19, 2025, https://www.dukascopy.com/swiss/english/marketwatch/articles/binary-options-trading-strategy/
15. Risks vs Return with Binary Option Trading – Theseus, accessed on April 19, 2025, https://www.theseus.fi/bitstream/10024/120432/2/Kiiskinen_Eemi.pdf
16. Research Article Binary options trading: A deep dive into user perspective and satisfaction – Semantic Scholar, accessed on April 19, 2025, https://pdfs.semanticscholar.org/5a25/be81673bab4d8469ab53acae452c1446c170.pdf
17. Binary Option: Yes or No: The Simplified World of Binary Options – FasterCapital, accessed on April 19, 2025, https://www.fastercapital.com/content/Binary-Option–Yes-or-No–The-Simplified-World-of-Binary-Options.html
18. Binary Options in Black And White – iExpats, accessed on April 19, 2025, https://www.iexpats.com/binary-options/
19. Product Intervention Analysis – | European Securities and Markets Authority, accessed on April 19, 2025, https://www.esma.europa.eu/sites/default/files/library/esma50-162-214_product_intervention_analysis_binary_options.pdf
20. FCA confirms permanent ban on the sale of binary options to retail consumers, accessed on April 19, 2025, https://www.fca.org.uk/news/statements/fca-confirms-permanent-ban-sale-binary-options-retail-consumers
21. FCA Makes Binary Options Ban for Retail Investors Permanent – Finance Magnates, accessed on April 19, 2025, https://www.financemagnates.com/binary-options/regulation/fca-makes-binary-options-ban-for-retail-investors-permanent/
22. Retail Clients: Central Bank to restrict sale of CFDs and ban binary options – Arthur Cox, accessed on April 19, 2025, https://www.arthurcox.com/knowledge/retail-client-june-2019/
23. Beware of Off-Exchange Binary Options Trades | CFTC, accessed on April 19, 2025, https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/beware_of_off_exchange_binary_options.htm
24. Are binary options legal in the US? – Nadex, accessed on April 19, 2025, https://www.nadex.com/blog/are-binary-options-legal-in-the-us/
25. What Are Binary Options: Definition, How Do They Work, and Example | LiteFinance, accessed on April 19, 2025, https://www.litefinance.org/blog/for-beginners/what-are-binary-options/
26. Binary Options Fraud — FBI, accessed on April 19, 2025, https://www.fbi.gov/news/stories/binary-options-fraud
27. The Basics of Investing In Binary Options – Washington State Department of Financial Institutions, accessed on April 19, 2025, https://dfi.wa.gov/financial-education/information/basics-investing-binary-options
28. Investor Alert: Binary options and Fraud – SEC.gov, accessed on April 19, 2025, https://www.sec.gov/investor/alerts/ia_binary.pdf
29. Understanding Binary Options: A Simple Guide to Trading – Liquidity Provider, accessed on April 19, 2025, https://liquidity-provider.com/articles/what-are-binary-options-a-simple-guide-to-trading/
30. Updated: CFTC Grants No-Action Relief for Certain Binary Option Transactions, accessed on April 19, 2025, https://uk.practicallaw.thomsonreuters.com/w-030-8766?transitionType=Default&contextData=(sc.Default)
31. Nadex Clearing, LLC – Form DCO Exhibit A-1 – Commodity Futures Trading Commission, accessed on April 19, 2025, https://www.cftc.gov/sites/default/files/stellent/groups/public/@otherif/documents/ifdocs/nadexformdcoexhibita-1.pdf
32. Braden Perry is Featured in Article About Binary Options – Kennyhertz Perry, accessed on April 19, 2025, https://kennyhertzperry.com/braden-perry-highlighted-in-article-about-understanding-binary-options/
33. A-Z List of Financial Regulators – MyComplianceOffice, accessed on April 19, 2025, https://mco.mycomplianceoffice.com/blog/a-z-list-of-financial-regulators
34. Investor FAQs | NFA – National Futures Association, accessed on April 19, 2025, https://www.nfa.futures.org/faqs/investors.html
35. Pattern Day Trader: Rules to Follow – Nadex, accessed on April 19, 2025, https://www.nadex.com/blog/pattern-day-trader-rules-to-follow/
36. List of financial regulatory authorities by jurisdiction – Wikipedia, accessed on April 19, 2025, https://en.wikipedia.org/wiki/List_of_financial_regulatory_authorities_by_jurisdiction
37. List of National Financial Regulators – Open Risk Manual, accessed on April 19, 2025, https://www.openriskmanual.org/wiki/List_of_National_Financial_Regulators
38. Regulatory authorities and supervisory agencies – Bank for International Settlements, accessed on April 19, 2025, https://www.bis.org/regauth.htm
39. Top Financial Regulatory Bodies in Europe – Blueberry Markets, accessed on April 19, 2025, https://blueberrymarkets.com/market-analysis/top-financial-regulatory-bodies-in-europe/
40. Europe wide ban on risky binary options – DLA Piper, accessed on April 19, 2025, https://www.dlapiper.com/en/insights/publications/2018/10/finance-and-markets-global-insight-issue-15/europe-wide-ban-on-risky-binary-options
41. Top Financial Regulatory Agencies In The World – AML Watcher, accessed on April 19, 2025, https://amlwatcher.com/blog/top-financial-regulatory-agencies-in-the-world/
42. Regulator Directory – Global Exchanges, accessed on April 19, 2025, https://globalexchanges.com/regulator-directory/
43. Binary options and CFDs: the AMF adopts national intervention measures – Autorité des marchés financiers, accessed on April 19, 2025, https://www.amf-france.org/en/news-publications/news-releases/amf-news-releases/binary-options-and-cfds-amf-adopts-national-intervention-measures
44. Regulators in the EU and European Economic Area (EEA) – Financial Conduct Authority, accessed on April 19, 2025, https://www.fca.org.uk/firms/regulators-eu-eea
45. List of foreign supervisory authorities – FINMA, accessed on April 19, 2025, https://www.finma.ch/en/~/media/finma/dokumente/dokumentencenter/myfinma/2ueberwachung/list-of-foreign-supervisory-authorities.pdf?la=en
46. Central Bank of Ireland bans sale of binary options and restricts sale of contracts for difference, accessed on April 19, 2025, https://www.centralbank.ie/news/article/central-bank-bans-sale-binary-options-restricts-sale-contracts-for-difference
47. 19-220MR ASIC proposes ban on the sale of binary options to retail clients, and restrictions on the sale of CFDs, accessed on April 19, 2025, https://asic.gov.au/about-asic/news-centre/find-a-media-release/2019-releases/19-220mr-asic-proposes-ban-on-the-sale-of-binary-options-to-retail-clients-and-restrictions-on-the-sale-of-cfds/
48. The APAC Regulatory Landscape – Nasdaq, accessed on April 19, 2025, https://www.nasdaq.com/articles/fintech/regulatory-news/the-apac-regulatory-landscape
49. Asia-Pacific Regulatory Profiles – International Swaps and Derivatives Association, accessed on April 19, 2025, https://www.isda.org/a/rzKME/APAC-Regulatory-Profiles-2019_Final.pdf
50. Membership | Network for Greening the Financial System, accessed on April 19, 2025, https://www.ngfs.net/en/about-us/membership
51. Beyond the Hype: Risks and Regulations in Binary Options Trading – IndiaCorpLaw, accessed on April 19, 2025, https://indiacorplaw.in/2024/02/beyond-the-hype-risks-and-regulations-in-binary-options-trading.html
52. 2023 Global financial services regulatory outlook | EY – US, accessed on April 19, 2025, https://www.ey.com/en_us/insights/financial-services/regulatory-outlook
53. About IOSCO, accessed on April 19, 2025, https://www.iosco.org/v2/about/?subsection=about_iosco
54. Countries – FATF, accessed on April 19, 2025, https://www.fatf-gafi.org/en/countries.html
55. Central bank and monetary authority websites – Bank for International Settlements, accessed on April 19, 2025, https://www.bis.org/cbanks.htm
56. Global Binary Options Regulations Overview – the Full Breakdown – Finance Magnates, accessed on April 19, 2025, https://www.financemagnates.com/binary-options/regulation/global-binary-options-regulations-overview-full-breakdown/
57. Understanding The Legality Of Binary Options Trading: Global Perspectives, accessed on April 19, 2025, https://www.ajs.org/understanding-the-legality-of-binary-options-trading/
58. Regulation in Crypto and Binary Options Markets: What You Need to Know, accessed on April 19, 2025, https://www.fingerlakes1.com/2024/10/17/regulation-in-crypto-and-binary-options-markets-what-you-need-to-know/
59. What the CFTC Says About Binary Options – Silver Law Group, accessed on April 19, 2025, https://www.silverlaw.com/blog/what-the-cftc-says-about-binary-options/
60. CFTC Issues Cease and Desist Order to Binary Options Operator Using Smart Contracts, accessed on April 19, 2025, https://www.blockchainandthelaw.com/2022/01/cftc-issues-cease-and-desist-order-to-binary-options-operator-using-smart-contracts/
61. Federal Court Orders International Enterprise to Pay Over $451 Million for Global Binary Options Fraud | CFTC, accessed on April 19, 2025, https://www.cftc.gov/PressRoom/PressReleases/9040-25
62. US Court Orders Trading Firms to Pay $451M Over Binary Options Fraud, accessed on April 19, 2025, https://www.financemagnates.com/forex/us-court-orders-trading-firms-to-pay-451m-over-binary-options-fraud/
63. Binary options fraudsters ordered to pay US$450 million – Investment Executive, accessed on April 19, 2025, https://www.investmentexecutive.com/news/from-the-regulators/binary-options-fraudsters-ordered-to-pay-us450-million/
64. Federal Court Orders Binary Options Firm and Owners to Pay Over $204 Million in Monetary Sanctions for Fraudulent Binary Options Scheme | CFTC, accessed on April 19, 2025, https://www.cftc.gov/PressRoom/PressReleases/8877-24
65. Looming Shadows? CFTC Orders Binary Options Markets Operator to Pay Substantial Monetary Penalty – SKrypto Blog, accessed on April 19, 2025, https://skrypto.sewkis.com/looming-shadows-cftc-orders-binary-options-markets-operator-to-pay-substantial-monetary-penalty
66. The end of CFDs and Binary Options? – Why the EU has put a stop & what comes next, accessed on April 19, 2025, https://www.planetcompliance.com/news/the-end-of-cfds-and-binary-options-why-the-eu-has-put-a-stop-what-comes-next/
67. ESMA adopts final product intervention measures on CFDs and binary options, accessed on April 19, 2025, https://www.esma.europa.eu/press-news/esma-news/esma-adopts-final-product-intervention-measures-cfds-and-binary-options
68. ESMA renews binary options prohibition for a further three months from 2 April 2019, accessed on April 19, 2025, https://www.esma.europa.eu/press-news/esma-news/esma-renews-binary-options-prohibition-further-three-months-2-april-2019
69. ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors, accessed on April 19, 2025, https://www.esma.europa.eu/press-news/esma-news/esma-agrees-prohibit-binary-options-and-restrict-cfds-protect-retail-investors
70. CP18/37: Product intervention measures for retail binary options – Financial Conduct Authority, accessed on April 19, 2025, https://www.fca.org.uk/publication/consultation/cp18-37.pdf
71. EUROPEAN SECURITIES AND MARKETS AUTHORITY DECISION (EU) 2018/ 795 – of 22 May 2018 – to temporarily prohibit th – EUR-Lex.europa.eu., accessed on April 19, 2025, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018X0601(01)
72. FCA plans wider retail ban of CFDs following ESMA proposals – Professional Adviser, accessed on April 19, 2025, https://www.professionaladviser.com/news/3067843/fca-plans-wider-retail-ban-cfds-following-esma-proposals
73. Binary option ban extended, subject to certain exclusions – Taylor Wessing, accessed on April 19, 2025, https://www.taylorwessing.com/en/insights-and-events/insights/2018/09/binary-option-ban-extended-subject-to-certain-exclusions
74. FCA Proposes Permanent Measures for Retail CFDs and Binary Options – objectivus, accessed on April 19, 2025, https://objectivus.com/fca-proposes-permanent-measures-for-retail-cfds-and-binary-options-2/
75. Compliance Corner: UK Bans Binary Options For Retail Investors – Wealth Briefing, accessed on April 19, 2025, https://www.wealthbriefing.com/html/article.php/compliance-corner%3A-uk-bans-binary-options-for-retail-investors-
76. PS19/11: Product intervention measures for retail binary options – Financial Conduct Authority, accessed on April 19, 2025, https://www.fca.org.uk/publication/impact-assessments/product-intervention-retail-binary-options.pdf
77. FCA Introduces Permanent Ban on Binary Options to Retail Consumers – objectivus, accessed on April 19, 2025, https://objectivus.com/fca-introduces-permanent-ban-on-binary-options-to-retail-consumers/
78. Compliance Corner: UK Bans Binary Options For Retail Investors – Family Wealth Report, accessed on April 19, 2025, https://www.familywealthreport.com/article.php/Compliance-Corner:-UK-Bans-Binary-Options-For-Retail-Investors-
79. UK Financial Conduct Authority Implements Permanent Ban of Sale of Binary Options to Retail Consumers – A&O Shearman | FinReg, accessed on April 19, 2025, https://finreg.aoshearman.com/UK-Financial-Conduct-Authority-Implements-Permane
80. PwC UK, accessed on April 19, 2025, https://www.pwc.co.uk/financial-services/assets/pdf/fca-proposes-ban-on-binary-options-and-restrictions-on-cfds.pdf
81. FCA Proposes Permanent Product Intervention Measures for Retail CFDs and Binary Options | Global Financial Regulatory Blog, accessed on April 19, 2025, https://www.globalfinregblog.com/2018/12/fca-proposes-permanent-product-intervention-measures-for-retail-cfds-and-binary-options/
82. 21-064MR ASIC bans the sale of binary options to retail clients, accessed on April 19, 2025, https://asic.gov.au/about-asic/news-centre/find-a-media-release/2021-releases/21-064mr-asic-bans-the-sale-of-binary-options-to-retail-clients/
83. ASIC Bans Binary Options for Australian Retail Clients | Finance Magnates, accessed on April 19, 2025, https://www.financemagnates.com/forex/regulation/asic-bans-binary-options-for-australian-retail-clients/
84. ASIC proposes ban on the sale of binary options to retail clients, and restrictions on the sale of CFDs – Finadium, accessed on April 19, 2025, https://finadium.com/asic-proposes-ban-on-the-sale-of-binary-options-to-retail-clients-and-restrictions-on-the-sale-of-cfds/
85. ASIC Extends Binary Options Ban until October 2031 – Finance Magnates, accessed on April 19, 2025, https://www.financemagnates.com/binary-options/regulation/asic-extends-binary-options-ban-until-october-2031/
86. ASIC extends binary options ban – Money Management, accessed on April 19, 2025, https://www.moneymanagement.com.au/news/policy-regulation/asic-extends-binary-options-ban
87. ASIC update: proposal to extend ban on binary options | Addisons | Sydney Law Firm, accessed on April 19, 2025, https://addisons.com/article/asic-update-proposal-to-extend-ban-on-binary-options/
88. crypto.com | Derivatives North America – Commodity Futures Trading Commission, accessed on April 19, 2025, https://www.cftc.gov/sites/default/files/filings/orgrules/22/09/rule091922nadexdcm003.pdf
89. Rules | Nadex, accessed on April 19, 2025, https://www.nadex.com/rules/
90. CFTC releases review of the Nadex regulated Binary Options exchange – LeapRate, accessed on April 19, 2025, https://www.leaprate.com/binary-options/platform/cftc-review-nadex-regulated-binary-options-exchange/
91. RULES OF NADEX CLEARING, LLC – Commodity Futures Trading Commission, accessed on April 19, 2025, https://www.cftc.gov/stellent/groups/public/@otherif/documents/ifdocs/nadexformdcoexhibita-2.pdf
92. CFTC prohibits Nadex political event derivatives – Hedgeweek, accessed on April 19, 2025, https://www.hedgeweek.com/cftc-prohibits-nadex-political-event-derivatives/
93. Banc de Binary Restitution Information | NFA – National Futures Association, accessed on April 19, 2025, https://www.nfa.futures.org/restitution/bdb.html