Update (January 9, 2017): We’ve just heard that Banc De Binary are closing down and terminating their operation as a binary options broker. Here you will find all of our objective binary options brokers reviews.
Banc De Binary isn’t just one of the veterans of the binary option trading industry, it is a true trailblazer from every angle. The first regulated broker, BDB has fought countless wars with various regulatory authorities world-over and its struggles continue. The problems encountered by Banc De Binary over the years, are truly representative of the issues the binary option industry as a whole is facing. The operation is the exponent of the struggles aimed at reconciling the fundamental conflict of interest at the core of the European binary option business model with the requirements of regulators.
A Short History
Over the years, the binary option trading industry has come under attack from a number of authorities. Countries like France, The Netherlands and Belgium have been waging a full-fledged crusade against the current industry MO and the players involved. Needless to say, the industry isn’t exactly enjoying a stellar reputation. Unless quick steps are taken in the right direction in this respect, this won’t change in the foreseeable future either. Banc De Binary have always been the first to take such steps, though the very nature of their operation has always proved a massive hurdle for them. Let’s take things one step at a time though.
Established in 2009, Banc De Binary has indeed quite an operational history under its belt. It’s picked up countless awards over the years. It has clients in over 80 countries worldwide. The company has set up a number of local brands. Most of these brands then proceeded to pick up a license from the appropriate local authorities. This is how various branches of Banc De Binary can boast CySEC oversight, as well as FCA and other local licenses. The road to the top for BdB has been one fraught with potholes. To this day, one cannot say that the reputation of the operation is a stellar one.
He who knows and understands how binary option trading currently works in Europe, knows that a spotless reputation is the stuff of fairy-tales. It simply cannot be achieved. The nature of the business and the fact that in the European business model, the broker is the sole market maker, means that there will always be disgruntled traders who will feel cheated out of their investments. That said, other than the expected grumblings of those who lost money trading, most complaints regarding Banc De Binary are about delays in the payout process (when the proper required paperwork was not provided), and about the advice provided by the account manager.
While all of those are legitimate complaints indeed, they hardly qualify Banc De Binary as a scam. There are of course a number of Banc De Binary features, which leave room for improvement. As said above, their account managers aren’t particularly popular. Some reviewers are advising against making any kind of use of the services offered by these managers. (See, for example, Jacob’s guidelines for dealing with brokers.) Another problem-area might be the free demo account offered by the broker. In order to gain access to such an account, a trader needs to make a $250 deposit, so it’s not free after all…On top of that, the account manager has full authority over how long one is allowed to use this demo account. Certainly not the handiest setup.
If you need to file a complaint against a binary options broker, please visit our Broker Complaint Center.
Banc De Binary Regulation
For the entire length of its existence, Banc De Binary has sought to belong to a regulatory fold. It was the first binary option company to get the nod from the Cyprus Securities Exchange Commission, as well as the FCA. Their regulatory status is solid to this day. The operation never shied away from providing any and all information about itself, including its addresses in Cyprus and in other countries where it has branch offices.
Full European regulation and compliance with the MiFID directives has always been a goal for Banc De Binary. Even as they took steps towards full compliance, they ran into problems with the US authorities. These problems were eventually settled, as Banc De Binary have paid out some $11 million in damages for having solicited US customers in the past. It is worth noting that BDB do not currently accept traders from the US, Canada, Australia and New Zealand.
Following this settlement, Banc De Binary entered a high-profile partnership with Liverpool Football Club, and they dusted themselves off once again. These days, they are back on track to full regulation, looking to fulfill the requirements of CySEC as well as the ESMA (European Securities Markets Authority). They’re aiming to eventually mold their business model into one fully acceptable for European regulators.
To this end, they have recently done away with all their bonus-based promotions. If you’re reading that they offer a 100% bonus anywhere, that’s no longer the case. The move came in response to the ESMA’s termination of all the bonus promotions tied to trading volumes used by retail Forex and binary option brokerages. According to the ESMA ruling, all national regulators will have to apply the new directives regarding these promotions, for the brokers operating under their jurisdictions.
According to the EU regulator’s general stance in this matter, all promotions encouraging traders to trade more, should be terminated. Indeed, most of the promotions egging traders on, are downright impossible to turn into real money, and are therefore quite unethical.
Banc De Binary Platform Features
Now that we have waded through the shortcomings of the operator as well as its struggles with various regulators world-over, it’s time to take a look at what they actually bring to the table features-wise.
Using the SpotOption 2 platform, Banc De Binary have managed to put together a very attractive trading package for beginners as well as experienced traders. They have made a lot of information available on trading in general, although they could’ve served this information up in a better-organized manner. Their site feels a bit cluttered, with everything squeezed in on the go. Fortunately, over the years they have displayed a willingness to listen to their traders’ feedback, so they’re constantly improving the operation.
Due to the nature of the SpotOption 2 platform, traders don’t actually have to download anything. The interface is intuitive and there are a number of trading tools built right in. The return percentages on trades which end up ITM vary between 70% and 91%. Frankly, hitting the 91% mark isn’t exactly easy as it represents an absolute maximum. As such, it is mostly used for marketing and advertising purposes. The average payout rate is around the 72% mark, which is well within the industry average. Banc De Binary do not currently offer any rebates on losing trades.
The minimum deposit has been set to $250. The minimum trade amount is $1, which allows for some very refined capital management. The maximum on the deposit is an impressive $6,000.
Banc De Binary Account Types
Banc De Binary have performed a lot of testing in this respect as well. They eventually boiled down their account type selection to three. There’s a Bronze account, a Silver- and a Gold one.
The Bronze account is clearly aimed at beginners. Requiring a minimum deposit of $250, it offers access to all the tradable assets supported by the operation. Included in the basic package are daily market reviews as well as access to two webinars per month. If you wish to open an account with Banc De Binary, we recommend going with the Bronze account and not with the Silver or Gold accounts.
The Silver account includes all this, plus access to the Loyalty gift store, trade alerts as well as direct communication with the account manager. For a month, Trading Central will provide trading signals too, to Silver account owners. To open such an account, one will have to make a minimum deposit of $2,500.
The Gold Account represents the pinnacle of Banc De Binary trading. With such an account come all the above detailed perks, plus trades recommended by the account manager. Caution needs to be exercised in regards to these recommendations. Many of the complaints detailed above have been linked to this – apparently poor – trade advice. For Gold account holders, BDB will also provide a smart money management plan as well as a one-on-one session with an analyst. To open such an account, traders will have to make a minimum deposit of $5,000.
Banc De Binary Bonus
Banc De Binary used to offer bonuses of up to $100% on deposits. These bonuses were apparently at the full discretion of the Account Executive. None of this is a problem anymore: to comply with the ESMA’s directives, BDB have done away with all their bonus-based promotions. They were all encouraging traders to trade more and thus fit the ESMA’s bill to a T.
Banc De Binary Withdrawal
In order to have a withdrawal processed, traders need to meet a minimum requirement of $/€/£ 100. It will take 7 business days for the operator to process the withdrawal and then some additional time, depending on the withdrawal method. Credit/Debit Card withdrawals mean an additional 2-5 days, Bank Wire means an additional 2-7 days, while through Skrill, the money is withdrawn instantly, or within 24 hours. There are no commissions charged by BDB on withdrawals, though traders’ banks may charge their own fees.
There have been a number of complaints regarding withdrawal times and issues with required paperwork. Here’s a quick guide on how one should set up his/her account in order to avoid such problems.
How to Set up a Banc De Binary Account
The first step you have to complete is to register with the broker. You should NOT make a deposit before the next couple of steps are completed as well. A government ID, an electricity bill and credit card info should be provided (with the first 12 digits as well as the 3 digit part at the end blocked). Next, you should request an “Approved for Deposit and Withdrawal confirmation”.
After these steps, you can make a deposit. Hopefully, this way you will not encounter any problems with your withdrawals.
Another issue is that of the spreads, which are essentially the differences between the prices on the charts and the prices offered by the broker. Moving ahead towards full MiFID compliance, this issue will have to be sorted out by BDB as well.
Besides providing access to a massive selection of underlying assets, Banc De Binary offer a social trading feature as well. Social trading is about copying the moves of other (hopefully very successful) traders, and profiting when they do. At Banc De Binary, this is accomplished through the ZuluTrade platform, and it is free for all account-holders.
Through a recent update, the trading platform has been endowed with candlestick charts, on which traders can now adjust the time-frames.
Asset Selection and Option Types
The tradable asset selection has always been better than average at Banc De Binary. They cover all the major stocks, indices, commodities and currency pairs, and they are continuously working on expanding this selection. Altogether, there are more than 200 underlying assets now.
Recently, they have introduced a brand new asset-class, called “Synthetics.” This class is essentially just another name for pairs trading. The class features 13 pairs, which allow traders to match commodity against commodity, stock against stock and indices against indices. Besides these pairs, Banc De Binary feature a range of expiry times, including the popular 60-second options as well as One Touch options. The Option Builder lets traders set their own expiry times, which is indeed a flexible and handy option for those keen on technical and fundamental analysis and various trading systems.
BDB support can be reached through a number of channels. These include phone, live chat and email. Response times are decent, although there’s room for improvement in this respect. The site also features a comprehensive FAQ section, where many of the questions traders may have, are already answered.
Banc De Binary Specs
|Broker name||Banc De Binary|
|Trading platform||SpotOption 2|
|Supportfirstname.lastname@example.org, email form|
|Trader Demographics||Everyone, everywhere, except US, Australia, New Zealand, Canada, Belgium and France|
|App compatibility||Android, iOS, Windows, Mac, Linux|
|Minimum required deposit||$250|
|Minimum trade amount||$1|
|Customer service||Eager to assist, available 24/7|
Banc De Binary Review Conclusion
Always looking to improve and to comply with the requirements of the regulatory bodies, Banc De Binary represent the past as well as the future of binary option trading. These guys are in it for the long haul. They may not be perfect, but they’re trying hard to get there. No, BDB is not a scam. That said, many of the complaints voiced by their clients are indeed valid.
If you are in need of a binary options broker, please visit our Choosing a Broker Guide for valuable tips and a list of trustworthy brokers organized by location and other factors.
Our Recommended Brokers
Need a great binary broker to open an account with? Here are a few suggestions all of which also include a FREE demo.
If you’re in the US – go with Nadex.
In Europe and South Africa – go with IQ Option.