Every now and again, someone does something sensible. This time it’s Google banning cryto advertising before too many people get ripped off, lose all their money and the global financial regulators come in and force them to do it any way.
I say force, I actually mean ask nicely, if they don’t mind, we rather you wouldn’t please.
But anyway, crypto advertising is the biggest scam in the financial world. It has taken over from binary options last year, welcome bonuses the year before and before that small camp pump and dump schemes. As fintech develops, so do the scammers…
Usually, the regulators are pretty late to the party when it comes to curbing scam advertising. It took them ages to regulate binary options even though it is blithering obvious that they are financial product. In the same way spread betting is regulated by the FCA rather than the UK Gambling Commission. So top marks to Google here for stepping in early.
Obviously Facebook has banned it too, as owners of Instagram (which is the biggest cesspool or trading scams), as their audience is probably the most naive and inappropriate audience for trading adverts.
At least, Google Adwords targets an audience that is actively seeking something out, rather than fake videos of Lambos and Rolexes. Having said that I did see a fake advert today, saying Dragons Den was cancelled, because all the Dragons had decided to invest in Bitcoin software instead.
I did go back through my internet history to grab a screenshot of the page, but it’s been replaced with a legit article…
Oh dear… I’m not surprised though, I’ve seem similar articles citing binary, small caps and crypto as the source of others wealth such as Peter Andre, Richard Branson and a few Americans I’ve not heard of…
Sneaky… Please excuse the click bait image, the original article lead to…
But the point here, is that crypto trading is just another asset class and decent brokers should be able to allow their customers to trade it.
After all, established and well-respected brokers like IG Index and Spreadex still allow their customers to trade binary options (although they call them something slightly different). A decent broker will still give you access to small-cap stocks. Read our Spreadex Review…
CMC Markets has recently started offering crypto trading, but only if you can demonstrate that you are a sophisticated trader and upgrade to professional status.
So to bring the point, home, crypto is here to stay and in time liquidity will increase reducing volatility, and what makes a market is opinion, and there are certainly opinions on cryptocurrencies.
Speculators, will always seek out new and interesting markets, and all traders have to start somewhere. It’s the responsibility of the regulators and the publishers to ensure that only properly regulated brokers are allowed to promote cryptocurrencies to the right audience.
It’s a blessing for decent brokers, because essentially brokerage is a relationship business. Decent brokers have decent client broker relationships. Whether that client relationship is with a brand, a trading platform or a human, the decent brokers keep on plodding away. Eventually winning the business from the flyby night cowboys who eventually always get their client acquisitions channels confiscated and not given back until they can grow up and behave.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.