The Securities and Exchange Commission (SEC) ordered EZTD to pay more than $1.7 million for misleading investors into trading binary options online before January 2014. EZTD Inc. manages three binary options brands, EZTrader.com, EZinvest.com and EZInvest-sec.jp. The SEC fined EZTD Inc. for failing to register as a broker-dealer to legally sell the offer the instrument to U.S. investors. EZTD also allegedly did not properly disclose the loss risks. The SEC claimed that EZTD made statements that falsely inflated the profitability of trading binary options, referring to it as a “highly profitable trading platform,” and an “extremely lucrative avenue for individuals who are looking to see an increase in income.” Many other firms in operation may be subject to the same fine, warned the SEC. According to the SEC, less than three percent of the 4,000 US investors who opened accounts with the group were actually able to make profits on their investment. EZTD will forfeit $1.5 million in revenue obtained from US customers and pay a $200,000 penalty. The company no longer sells binary options in the US. A Division of Enforcement representative at the SEC stated: “EZTD’s revenues were largely derived from customer trading losses, yet EZTD emphasized the profitability of trading in binary options. Companies dealing in binary options must disclose more than general statements about investment risk so investors in these instruments understand that the odds are stacked against them.” Please call us today if you lost money in binary options trading with EZTD. Attorneys are standing by to take your call for free to discuss your options of recovering your losses.
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