What do I need to know about Binary Options trading?
Last updated 19 October 2017
Binary options are a type of option where you try to predict the short-term movements of a share price, currency, index or commodity. They are relatively new in Australia and are a speculative, high risk product. For more information on what they are, visit ASIC’s MoneySmart.gov.au website – link here.
Why is the Bank not allowing me to transact at these merchants?
We are aware customers are being targeted by international companies undertaking binary options trading. Many of these companies do not have an Australian Financial Services Licence (AFSL). Binary options are speculative, high risk products which can result in large financial losses for customers.
When making these trades it is important customers only deal with Australian companies holding an AFSL and read the terms and conditions carefully to protect their investments. CommBank will no longer allow debit and credit card transactions at international binary options trading merchants.
Where customers attempt to use third party financial providers to make payments for these trades, CommBank may block the provider.
Is the Bank still allowing credits from these merchants?
CommBank will continue to allow credits from these merchants to be processed to our customers’ debit or credit card.
How can I protect myself in the future?
To ensure you are fully aware of the arrangement you are entering, seek professional financial advice from a qualified financial advisor before engaging in binary options trading and carefully read the terms and conditions of the service provider. Binary options traders must have an Australian Financial Services Licence (AFSL). If you are setting up an account, make sure you are dealing with a licensed operator before you provide any personal information or copies of your personal identification documents, such as a driver's licence. Check operators are licensed on ASIC's professional registers. For more information on scams you can also visit scam watch on www.scamwatch.gov.au.
Is there any other action I need to take?
We recommend you check the terms and conditions of the service provider you may have an arrangement with or be considering to make arrangements with and ensure they have an Australian Financial Services Licence (AFSL).