Banc De Binary Review
Banc De Binary is one of the oldest brokers around, founded in 2008. The website is owned and operated by Banc De Binary Ltd., a company that was regulated by the Cyprus Securities and Exchange Commission under license number 188/13 since 07/01/2013). However, due to the fact that Banc De Binary is about to close down shop (read below more details), the company has renounced the CySEC licence, which lapses as from the 15th of January 2017. The renunciation occurred on the 9th of January 2017. Read Bdb CySEC renounce Announcement here.
Update August 2016: We have to make a clear distinction between the two web domains of Banc de Binary: the domain bancdebinary.com is owned and operated by Ash Ltd and its affiliated Company to Aster Services Ltd. with incorporation number: 204033843 address: Sofia 1463, Sofia District, Bulgaria. The trading address of Ash Ltd is situated at UL. Stoney ground, P. O. Box 1823, VC- 100 Kingstown, St. Vincent, Grenadyny. Outside the European Union, Ash Ltd. operates this website. Their services are not available to citizens of the U.S., Canada, Australia and New Zealand. The other domain name is eu.bancdebinary.com and if you land on this site (depending on the region you are accessing it from), you will see that it’s owned and operated by Banc De Binary Ltd. All the details from above are still valid (licence number, address, etc.).
Important Update 10.1.17: Banc De Binary announced they’ll be closing doors soon. High-ranking BDB official confirms that new clients no longer accepted. CySEC announced that Banc De Binary renounces licence but they will maintain oversight until client issues are resolved. Please read section: Banc De Binary Regulatory Announcements and Warnings below.
Is Banc de Binary a Scam?
From one hand, BBinary.eu is doing a step forward towards European regulation, BBinary.co.uk has gained FCA regulation, and other brands achieved CySec regulation. From the other hand, we’ve heard from financemagnates.com, a respected Financial B2B website, that banc de binary is having problem with the US authorities. Update Feb 2016 – Banc de Binary have reached a massive $11 settlement with the US authorities.
Update May 2016: the U.S. issue is now in the distant past and Banc de Binary is well regulated and even partnered with Liverpool football club but the amount of complaints cannot be overlooked. Most complaints focus on two things: Account manager lost the money, and aggressive sales tactics so the answer to “Is it a scam?” is hard. Depends on who you ask. The official authorities like CySEC and FCA are OK with Banc de Binary. The bad winds from the USA authorities are now past. If you ask the traders who published their stories all over forums and websites, they’ll tell you it’s a scam but probably the answer is somewhere in the middle.
At BOTS, we recommend to all traders who are using or thinking of using Banc de Binary to avoid accepting advice from their account manager at all cost, however that’s not something specific for this brokerage. The only issue is that we see those complaints on a much higher scale when it comes to Banc de Binary. Do your math here. However, this broker operates at full-power since 2009, so they must be doing something right after all. It’s just not our cup of tea.
Update January 2017: In light of recent developments, the sponsorship deal between Banc De Binary and Liverpool FC is no longer active. Banc De Binary themselves admitted they have a bad reputation and in fact, bad reputation and complaints are the reason why they are closing down. Furthermore, there is a rumour that London-based law firm Giambrone is gathering information and required documents for a class action lawsuit or other type of appropriate legal action.
Editor’s Note – Why does Banc De Binary Suck in 50 Words? (My Opinion)
They offer a Demo account. I know it doesn’t sound bad and you might be wondering if I mistakenly placed this under “Why it Sucks”. Well, here it is: they say you have to deposit the minimum amount of $250 in order for you to have access to the Demo account and even if you did that, you don’t know how long you can use this Demo. The period will be at the discretion of your account manager. So actually the free Demo is not so free after all and you don’t know for how long you can use it. Maybe a week, maybe a day… depends on your account manager.
Why Banc De Binary Doesn’t Suck (My Opinion)
Their website contains a lot more information about Binary Options than we are used to see from regular brokers and I think it’s a good idea to offer such a complex educational material. Keep in mind that when I say “complex”, I compare it to other mainstream brokers, not to real educational websites like… of course, BOTS.
Should I Open an Account with Banc de Binary?
Well the first question comes to my mind is: Can you even trade with BdB anymore? I mean, they recently announced they’ll be closing doors… Anyway, the first feeling I got when I accessed their website was one of clutter: a lot of information squeezed together, a lot of linked content and an annoying “Live Support” pop-up that covers a big portion of my screen and stays constantly somewhere in the middle of the page. The thing is that I can find the Live Chat button on my own and I don’t need pop-ups for that. It may be just a personal preference, but I really don’t like pop-ups and I get instantly annoyed when I see one. *Update: Fortunately the annoying pop-up is now gone. Probably I was not the only one complaining about it. Ok, moving on, I took a look at their platform which is powered by Spot Option and this makes it easy to use and with enough features to keep both newbies and experienced traders happy. There’s no need to download any software and everything can be accessed online, a fact which is a characteristic of the Spot Option trading platform and numerous others. Their platform features a functional Option Builder, 60 seconds trading, One Touch and pretty good returns between 70% and 91% for In the Money Options. However, the 91% return is rarely seen on the platform but I guess it’s good for marketing purposes. The average is around 72%, average for the industry. Banc De Binary does not offer a refund in case of OTM.
Banc De Binary offers differentiated accounts; in other words, the more you deposit the more benefits you will have. The low end account is called Bronze and requires 250 EUR initial deposit, followed by the Silver account (minimum deposit 2,500 EUR) and by Gold account (minimum deposit 5,000 EUR). Previously they had a VIP account, with good benefits, but we’ve seen other brokers that offer those for standard accounts or for a smaller deposit. If your deposit exceeds $100K (huge, I know), you really get treated like a king: you will get a personal assistant to make your calls and book your appointments, order gifts online… and much more. Also, if you need guest list access or tickets to a sold out event, you can ask them for help. It all sounds worthy of a movie to be honest but if I come down to Earth, I realize that I don’t have $100K to invest in Binary Options… not even $50K and I bet that most traders are in the same situation. So to me, Banc De Binary is a company focused on the big rollers and the benefits they offer to regular traders are not really outstanding. To conclude, if you are a high roller who can invest tens or hundreds of thousands of dollars in Binary Options, maybe Banc De Binary is a good choice for you. Otherwise, I would look for a different broker, more suited to your needs and financial situation. *Update: The VIP account is no longer available but somehow I still believe they will offer you the benefits mentioned earlier for the VIP account if you deposit a large sum. On the website the VIP account has been replaced by a Lion Premium Account for clients who deposit more than 10,000 EUR. The benefits of this Lion account are not described on the website and obviously we did not deposit this sum.
Banc de Binary Complaints
We at ThatSucks.com (former BinaryOptionsThatSuck.com) always look for complaints, fraud alerts or possible scam by performing a simple search, which could also be done at home: just write the brokers name, in this case bbinary/ banc de binary or Bdb, then type scam, fraud, suck, complaints, etc. Search dipper into forums and reliable website and look for user’s comments. When we searched for bbinary, the search was simple.
When we search for comments regarding, banc de binary we found quite a few of them. Whether or not those comment, feedback and complaints all stem from frustrated traders, or actually hold merit, we can’t be sure of at this time. What we can tell you is to protect your money, and make a wise decision when choosing a broker.
Update August 2016: This brokerage continues to get mixed reviews from their traders. Come to think of it, this is the case with all brokerages but the fact that people talk about them means their client base is still high.
Banc De Binary Regulatory Announcements and Warnings
09.01.2017: In an industry-shaking move, Banc De Binary announced they will be closing their doors and will stop accepting new clients! The news was confirmed by a high-level Banc De Binary official who also informed that the decision was taken by the company owners due to increasing complaints and negative press received by the company over the last years. CySEC confirmed that Banc De Binary will be closing down and renouncing their licence but stated that the company will remain under the supervision of the CySEC until it settles the obligations arising from the current licence that will expire on the 15th of January 2017.
The official noted for FinanceMagnates.com that “It’s become the wild west in the past few months,” … “Its just not worth the tarnished reputation. I don’t see how we can continue operating under such scrutiny and public image.” According to him, arrangements have been made to stop accepting new clients (Note: at the time of writing – 11.01.2017 – new accounts can still be opened) and “All client funds are being sent back to their original source. We’re just waiting for the official announcement from the board to begin the process.”
According to Finance Magnates, London based law firm Giambrone is preparing litigation against Banc De Binary and is gathering complaints from customers. For more information and contact details, visit this Forex Peace Army thread and this Banc de Binary thread on CommuniTraders Forums.
09.03.2016: The U.S. Commodity Futures Trading Commission (CFTC) announced that a federal court in Las Vegas, Nevada, issued a Consent Order against Banc De Binary (including its subsidiaries and founder Oren Laurent) to pay more than 9 Million USD in Restitution and a Civil Monetary Penalty for Violating the CFTC’s Ban on Trading Binary Options Off-Exchange. The Order entered on February 26, 2016 and stems from a CFTC complaint filed June 5, 2013. Source: CFTC Bdb release. Additional information: Banc De Binary and CFTC – A massive settlement.
27.01.2016: The Cyprus Securities and Exchange Commission (CySEC) reached a 350.000 Euro settlement with Banc De Binary for suspicion of possible violations of the Investment Services and Activities and Regulated Markets Law of 2007 (the “Law”) and of the Directives issued pursuant to the Law. Source: CySEC Bdb Board Decision.
Banc De Binary Bonus
They have changed their bonus structure in a way that now it is completely at the discretion of the Account Executive. Bonuses still go as high as 100% and what I don’t like is that I couldn’t find the exact turnover structure on their website (we don’t know how much you have to trade before you are allowed to withdraw). Probably the Account Executive will decide that too… Anyway, as you know, our opinion is that a big bonus creates more problems than benefits. The main problem is of course the fact that you cannot withdraw until the required turnover is accomplished and the higher the bonus, the higher the trading volume needed until you can withdraw. However, the good thing is they don’t force the trader to accept the bonus.
Update August 2016: The 100% bonus is available only for Gold account owners and upwards.
Banc De Binary Withdrawal
The minimum withdrawal amount is 100 USD/EUR/GBP, it will be processed by Banc De Binary usually in 5 working days but it will take additional time (depending on the withdrawal method you chose) until the money will be visible in your account. There are no fees charged by Banc De Binary but your bank or payment-processing service may charge you according to their policy. Available withdrawal methods are Credit/Debit Cards, wire transfer and Skrill (MoneyBookers).
Update August 2016: The processing time is 7 working days on average and once that is done, it will take additional time depending on your withdrawal method: bank wire – 2 to 7 working days; credit card – 2 to 5 working days; Skrill – instantly to 24 hours.
Banc De Binary Extras
They offer a Free ZuluTrade feature. This is a well-known social trading platform where you can follow the most successful traders according to their ZuluRank and profit (or lose) when they do.
Banc De Binary Ratings
User Friendly 18/20
Their website is offered in 10 languages, the Spot Option 2.0 platform is known to be user friendly so everything looks good… except the clutter I mentioned earlier and the annoying pop-up which kept on appearing even though I closed it several times. *Update: well, that pop-up is now gone. Good riddance! However, I have to note that their website is very slow and especially if I open two or three separate pages, things start to get really sluggish.
Number of assets and expiry times 19/20
Their basket of trading assets is composed of 97 stocks, 25 currency pairs, 8 commodities and 23 indices. Their asset index has been increased since out last visit, especially their stocks offering. All the normal expiry times are available, including 60 seconds trading, One Touch and an Option Builder which lets you choose your own expiry.
Update August 2016: They offer a new asset category called “Synthetic”, which contains 13 pairs. Here you pit stock vs. another stock, a commodity vs. another commodity or indices vs. indices and it’s simply another name for the more common “Pairs” trading.
Commissions, Support and Effective return 17/20
Banc De Binary doesn’t charge you for depositing or withdrawing but there will be some costs related to bank transfers or other withdrawal methods. Their customer support agents are pretty polite but there is room for improvement, especially on the speed of response. The effective return goes as high as 91% according to them, but I have yet to see an asset which offers 91% profit. The average return is 72%, and some assets go up to 82%. There’s no refund for OTM (at least we couldn’t locate any on most major assets).
Deposit, Payment and Bonus 17/20
The minimum deposit is $250 and can be made through Credit Card, Bank Wire or Skrill (MoneyBookers). Payments coming from Banc De Binary to you will be made to the same source the money first came from (if you deposited via Credit Card, you will have to withdraw to the same Card). The bonus structure has been changed: it can still go up to 100% but it depends on what your Account Executive decides. The required turnover (before a withdrawal can be made) is not specified on the website so we can only assume that it will be decided by your Account Executive. The trader can choose not to accept any bonus.
Website Extras 18/20
Their educational material is more complex than on other websites and they offer a connection to ZuluTrade, which is a well-known social trading platform.
Update August 2016: Their SpotOption platform now offers candlestick charts and the possibility to change time frames.
Banc De Binary Ratings 89 + Regulated (+3) – *Low User Rating (-5) = 87/100
*In case a broker receives a low user rating bots (X<50) our team deducts 5 points of the overall ratings.