SpotOption successfully received its first binary option license in May 2012 from the Cyprus SEC (CySEC) allowing the firm to operate as a regulated investment company, subject to Cyprus law.As the chart below illustrates, the main screen of the SpotOption trading platform offers an attractive and user-friendly appearance which was specifically designed with clarity and ease-of-operation in mind. As such, traders, especially novices, can make better quality decisions consistently with optimum confidence. In addition, SpotOption has successfully developed some of the best risk management tools on the market today.As the SpotOption trading platform is one of the newest available, investors should not be surprised to find that it offers a range of innovative features. For instance, clicking the Top Picks option on the menu bar will allow you to access a selection of exclusive trading tips generated by a team of prominent experts. The Stocks, Currencies, Indices or Commodities facilities provide similar recommendations but for their own applicable asset categories. Hedging is also supported by the SpotOption trading platform providing traders with additional flexibility.One particular tool of note is the Option Builder which endows you with the ability to develop your risk management plans. As the chart below demonstrates, you can perform this task by designing your own stop-losses and profit-targets to specifically match your choice of underlying asset and expiry time. This highly valuable feature is considered by many prominent analysts to be especially useful for novices and those traders possessing a more conservative attitude.More experienced traders will find this innovative tool, as displayed on the chart below, especially appealing as it will enable them to exploit their technical and fundamental analytical skills to the full. By viewing the trading history of any asset of interested, they will be readily able to formulate trending patterns by utilizing features such as enlarged graphs.In Summary, SpotOption has, without question, constructed a very impressive binary options trading platform. As such, many prominent binary options brokers on the market today are already exploiting this premier facility, including TradeRush, Banc De Binary and Redwood Options. In fact, over fifty top brokers to date have based their business models on the powerful and innovative attributes of this world-class tool.Binary options differ from conventional options in key aspects and therefore, open the door for more widespread fraud. Binary options are a product in which the payout depends on the outcome of a yes/no proposition that is agreed upon when purchased. The yes/no proposition relates to a particular asset being a certain price at a set time. Binary options are referred to as an all-or-nothing options meaning that the customer receives either all of the promised return or none of it. A binary option does not allow the buyer to sell or purchase the underlying asset. Most binary options are purchased online through overseas internet-based trading platforms, which increase the risk of fraud for customers due to less transparency. There are three prominent fraudulent schemes that have developed as binary option trading has increased. The first scheme involves a trading platforms refusal to credit customer accounts or reimburse funds. This occurs when a customer attempts to withdraw their original deposit or the money that has been promised and they are unable to do so because the trading platform cancels the customers withdrawal requests, refuses to credit the customer account or ignores the customers calls and emails. The second scheme is identity theft. Identity theft can easily occur when trading platforms gather credit card and drivers license information. The third scheme concerns the manipulation of trading software in order to prolong the expiration date of the binary option. The trading platform keeps moving the expiration date so that the customer never can win.In order to prevent all types of binary option fraud, customers should always check online with the SEC and FINRA to see if the broker-dealer and/or trading platform are registered as well as to see if the binary option sale is registered or exempted with the SEC. If you have any questions about binary options contact the Indiana Secretary of State, Securities Division at (317) 232-6681.Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. Intraday data delayed per exchange requirements. SampP/Dow Jones Indices (SM) from Dow Jones amp Company, Inc. All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More information on NASDAQ traded symbols and their current financial status. Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. SampP/Dow Jones Indices (SM) from Dow Jones amp Company, Inc. SEHK intraday data is provided by SIX Financial Information and is at least 60-minutes delayed. All quotes are in local exchange time.To date, only one entity that offers binary options has been granted status as a designated contract marketthe North American Derivatives Exchange, Inc (NADEX). All other entities that are offering binary options that are commodity options transactions are doing so illegally.The Securities and Exchange Commission, in an investor alert issued on June 6, 2013, has made it very clear. This is important in the light of recent fraud complaints received by the agency related to online binary options brokers with dubious practices. Chief among these complaints are the refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of software to generate losing trades.For a clear idea of what binary options are, read the primer Binary Options Trading: An All or Nothing Gamble that explains the concepts behind this investment option in greater detail. Essentially, binary options involve a yes/no proposition.