NADEX Proves Brokers Can Look Out For Their Clients

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NADEX Proves Brokers Can Look Out For Their Clients

NADEX, Self-Regulated Safe Broker

NADEX has provided an example of how a broker, and exchange and the binary options should operate; self-regulating. The exchange has recently banned a husband and wife team found guilty of operating a money-pass scheme. Money-pass, a practiced deemed unethical and illegal by NADEX and regulators, is a fraud in which equal and offsetting trades are placed in two accounts simultaneously for the purposes of transferring funds from one account to another. Typical perpetrated by black-hat money managers this one was operated by James Groves and his wife Georgiana Chiuc.

Groves, posing as a practiced and experienced NADEX trader, executed trades with high probability of loss in client accounts while his wife place the opposing trades at the same time. By using off-sized lots and simultaneous execution trades the pair were able to evade detection by the designated market maker. It was the compliance department that uncovered the fraud. Compliance officials noticed suspicious trades in the accounts of two of their members. The department then contacted the owner of the losing account to inquire into the nature of the trades. The clients response was that they had let Mr. Groves take control of their account and trade for them, a revelation that led to further inquiry.

A panel of NADEX officials found that a total of 28 trades had been placed for a total of 1,451 contracts. Ms. Chiuc’s account benefited a total of $43,238.90, all of which is to be returned as part of the settlement. The pair has been banned from NADEX for life, fined $500 each and forced to return the ill gotten gains in restitution. No word on further charges or civil penalties. Click here for the full NADEX review.

The Neil Pecker Scandal Expands

In an extension of the Neil Pecker scandal reported on a few weeks ago. In that scandal Neil Pecker and Vision Financial Partners were fined more than $6.5 million in fines and disgorgement following the unraveling of his scheme. Now the CFTC has fined Westward and Coucarin nearly $2 million in fines and disgorgement of lost funds for their part in the fraud. The two are not charged directly with defrauding clients but have been found to have provided no legitimate services or interest to client accounts. Westward and Coucarin are both holding companies which received funds diverted from Vison Financial’s client accounts.

It’s Not All Bad News

Technology provider TechFinancials, the binary options industry only publicly traded firm, recently reported earnings. The company reports a 57% increase in year over year revenue which resulted in positive operating profits. Full year 2020 operating profits totaled just over $5 million, versus a loss of $0.10 million in the prior year. Software licensing saw an increase of 22%, led by a 117% increase in platform revenue. The downside is that going forward there will be a sharp decline in platform revenues due to 24Option’s choice to provide it’s own technology.

The silver lining is the advancement of Asian joint-venture DragonFinancial. DragonFinancial is operating in a number of Eastern markets and producing nearly $9.5 million in annual revenue for the company.

Asaf Lagav, Techfinancials CEO – “Going forward we expect 2020 will be challenging due to the loss of our largest customer and the uncertain and tightening regulatory environment particularly in Europe. We anticipate these regulatory changes will have an impact on the B2B performance for the rest of 2020, both on its revenues and on earnings,”

NADEX Proves Brokers Can Look Out For Their Clients

NADEX, Self-Regulated Safe Broker

NADEX has provided an example of how a broker, and exchange and the binary options should operate; self-regulating. The exchange has recently banned a husband and wife team found guilty of operating a money-pass scheme. Money-pass, a practiced deemed unethical and illegal by NADEX and regulators, is a fraud in which equal and offsetting trades are placed in two accounts simultaneously for the purposes of transferring funds from one account to another. Typical perpetrated by black-hat money managers this one was operated by James Groves and his wife Georgiana Chiuc.

Groves, posing as a practiced and experienced NADEX trader, executed trades with high probability of loss in client accounts while his wife place the opposing trades at the same time. By using off-sized lots and simultaneous execution trades the pair were able to evade detection by the designated market maker. It was the compliance department that uncovered the fraud. Compliance officials noticed suspicious trades in the accounts of two of their members. The department then contacted the owner of the losing account to inquire into the nature of the trades. The clients response was that they had let Mr. Groves take control of their account and trade for them, a revelation that led to further inquiry.

A panel of NADEX officials found that a total of 28 trades had been placed for a total of 1,451 contracts. Ms. Chiuc’s account benefited a total of $43,238.90, all of which is to be returned as part of the settlement. The pair has been banned from NADEX for life, fined $500 each and forced to return the ill gotten gains in restitution. No word on further charges or civil penalties. Click here for the full NADEX review.

The Neil Pecker Scandal Expands

In an extension of the Neil Pecker scandal reported on a few weeks ago. In that scandal Neil Pecker and Vision Financial Partners were fined more than $6.5 million in fines and disgorgement following the unraveling of his scheme. Now the CFTC has fined Westward and Coucarin nearly $2 million in fines and disgorgement of lost funds for their part in the fraud. The two are not charged directly with defrauding clients but have been found to have provided no legitimate services or interest to client accounts. Westward and Coucarin are both holding companies which received funds diverted from Vison Financial’s client accounts.

It’s Not All Bad News

Technology provider TechFinancials, the binary options industry only publicly traded firm, recently reported earnings. The company reports a 57% increase in year over year revenue which resulted in positive operating profits. Full year 2020 operating profits totaled just over $5 million, versus a loss of $0.10 million in the prior year. Software licensing saw an increase of 22%, led by a 117% increase in platform revenue. The downside is that going forward there will be a sharp decline in platform revenues due to 24Option’s choice to provide it’s own technology.

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The silver lining is the advancement of Asian joint-venture DragonFinancial. DragonFinancial is operating in a number of Eastern markets and producing nearly $9.5 million in annual revenue for the company.

Asaf Lagav, Techfinancials CEO – “Going forward we expect 2020 will be challenging due to the loss of our largest customer and the uncertain and tightening regulatory environment particularly in Europe. We anticipate these regulatory changes will have an impact on the B2B performance for the rest of 2020, both on its revenues and on earnings,”

Nadex Scam Review

Nadex promises secure trading and offers generous results to new clients. But is this broker legit or is Nadex a Scam?

We have made a research of Nadex and found out that they do not rate highly and there is no significant data about them. As an alternative we have selected our Top Safe Stocks Trading Brokers along with detailed reviews for safe and secure trading.

Since we haven’t gathered enough information yet, we cannot confirm that Nadex is safe. You can OR Choose one of the Is-Scam approved and safe Stocks Trading Brokers:

NADEX Review

Our team of experts took a careful look at all the services offered by NADEX. After testing their deposit and withdrawal procedures, the trading platform and after reviewing feedback from traders, we made a detailed review of the company. You can read the full NADEX review below.

Is NADEX a Scam?

NADEX is a stocks trading platform, a subsidiary of the UK derivatives trading company IG Group. It is registered as a Designated Contract Market and a Derivatives Clearing Organization with the Commodity Futures Trading Commission (CFTC), which makes it a subject to the regulatory oversight of the CFTC.

NADEX works in compliance with all the laws and regulations applicable to such financial operations. These regulatory principles include full transparency on every trade, keeping members’ funds in segregated accounts and providing a level of protection that off-shore providers cannot give. The NADEX platform is designed primarily for retail traders. On the NADEX website traders can also find an educational library featuring trading handbooks, webinars and training videos.

Trading Platform

The NADEX trading platform is entirely browser-based, which means that it doesn’t require the download or installation of any additional software. Traders can choose from over 2,400 contracts daily in the asset classes of stocks and shares. After selecting a market the trader is interested in, they can proceed to choosing an asset.

Next comes selecting a strike price and hourly, daily or weekly expiration, which means that you can pick the exact price and time you would like to make a prediction for. Then traders have to select a direction − Buy if they think the price will rise, or Sell if they think the price will fall. When this step is completed, traders get a clear indication what their maximum profit and maximum loss could be.

The NADEX trading platform has a wide range of features but in order to avoid cluttering the interface traders can customize the layout and select to view only the tools they want to use. The platform also provides real-time charts with asset price movements, which can be annotated. The streaming data comes directly from the exchange without any delays. Trading with NADEX can also be done on the go via the free mobile app available on the App Store and Google Play.

Account Types

NADEX has one unified type of account for all categories of traders. However, you can test the trading platform by signing up for a Free Demo Account with $25 000 of virtual funds in order to try out the various tools and features and to get familiar with the trading process. NADEX also offers bonuses for first initial deposits in the form of Free Trading Days. Depending on the amount of the deposit traders can get up to 15 free trading days, which means that during that time they will not be charged any exchange fees.

How to Get Started?

  1. Free Sign Up − Opening an account with NADEX is free of charge and traders can complete their registration in 5 minutes.
  2. Trade − When you decide you are ready to trade you have to activate your account in order to be able to invest. Then you can proceed to opening positions.
  3. Withdrawal − The final step is to withdraw.

Deposit and Withdrawal Procedures

To start trading with NADEX you have to make a minimum investment. There are various options for activating your account and the methods available depend on your country of residence. Investors can make deposits via debit card, bank transfer, wire transfer or paper check and can withdraw their profits by using ACH (Automated Clearing House network) or wire transfer. For more details regarding the deposit and withdrawal procedures it is recommended to visit the Funding/Withdrawing page on the NADEX website.

Support Information

NADEX offers 24 hour Customer Support, which can be contacted by phone, e-mail and mail. The NADEX office address is: North American Derivatives Exchange, Inc., 311 South Wacker Drive, Suite 2675, Chicago, IL 60606. Traders can call the toll free number.

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