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Banc De Binary CEO Oren Laurent Opens Up on Binary Options
Tell us about yourself first. What is your management style?
I have always been fascinated by financial markets. Even as a child I’d rather watch the financial news than Nickelodeon. My family wanted me to study medicine, but when I told them I had been accepted to study economics, they grudgingly accepted that their dream of having a doctor in the family was over.
I networked while at college and was offered a position at NAF Hedge Funds as soon as I graduated. It was there that I learned how the markets really work. You can definitely learn a lot at college, but there is no substitute for hands-on experience. Once I felt I had absorbed as much as I could at NAF, I went to work for Infinity Private Investment Funds–just before the financial crisis hit in 2008.
My management style?
It’s simple, really. Banc De Binary is a very big operation. We employ just over 250 people worldwide and that number is growing every day. To micromanage the activities of so many people would be a waste of time and counter-productive. I take a broad view of the business and concentrate on strategy, new markets, and strategic partnerships. I trust my management team to hire the best people and get the best out of them. That said, I do like to build relationships with all of our employees–my door is always open if anyone has a suggestion about how to improve any aspect of the business.
Tell us how your company started and when.
Banc De Binary started as a direct result of the 2008 financial crisis. I worked on Wall Street in the years leading up to the meltdown and was appalled at the recklessness of the “respectable”
I wanted to change all that and, fortunately, I was young and naïve enough to think I could succeed.
My vision was to open the financial markets to everyone, not just experienced traders. It was around this time that the SEC green-lit binary options – financial instruments where investors just have to predict the direction the price of an asset like gold or a company stock will take, as opposed to the old ways of investing where traders try to profit from price direction and magnitude. It was a real Eureka moment. I knew immediately that the simplicity of binary options, if properly presented, would change the nature of investing forever. A group of us then set up SpotOption – a company that now provides the #1 platform for trading binary options online. Once that was up and running and the platform was in place, I started Banc De Binary. That was on the 15th of January 2009. In the beginning it was just me and three others, all fresh-faced and idealistic young brokers who wanted to make a difference.
What does your company sell?
Banc De Binary provides the platform and support for investors to trade binary options. Binary options are relatively new investment vehicles that simplify the trading of currencies, commodities, company shares and the major world indices. We’ve stripped the act of trading down to its very essence; and the only thing we’ve added is certainty. Let me explain: with traditional trading, be it buying the shares of a company or regular forex, there are two variables in play. One, will the price of the asset go up or down? Two, by how much will the asset’s price move? To generate satisfactory returns, an investor has to be right on both counts. With binary options we have completely removed one of the variables – magnitude. All an investor has to do is correctly predict the direction the price of an asset will move over a given time period. We’ve boiled the financial markets down to a simple choice between two possibilities:
The certainty I referred to earlier is the return on investment. With binary options traders know – before they enter a trade – precisely how much they stand to gain from a successful investment. Average returns are between 60 and 80 percent – most commonly around the 72 – 75 percent mark – and some offer returns of up to 500 percent. It’s the simplicity, transparency and game-changing profits of binary options that will see this industry overtake online forex in the next few years – indeed we are already seeing signs of that happening.
Which companies do you consider to be competitors?
Our position as number one in the binary options industry is now secure. We were the first to market and have really capitalized on that. Banc De Binary enjoys such excellent brand recognition that we don’t really see meaningful competition existing within our own industry. Instead we are focused on making our mark on the broader online investment landscape – I want to see the popularity of binary options overtake forex and CFDs, for instance.
What makes your products and services better than competitors’
I have to credit Banc De Binary’s people. Our brokers are far and away the best in the business. When clients sign up for a Personal Broker account they are in incredibly safe hands. We have structured the business so it is completely customer-centric, particularly in the client-facing roles. The customer service and brokerage team are incentivized to make our clients’ experience with Banc De Binary as user-friendly, transparent and profitable as possible. It’s this ethos that sets us apart and has enabled us to win awards for Best Broker, Best Customer Service, Best Platform, Best Security and back-to-back World Finance 100 awards.
How big is the company in terms of its workforce?
Banc De Binary employs over 250 people now and I anticipate that number doubling by the first quarter of 2014. The core people are in place and now it’s just a matter of scaling things up in a controlled way. It is very tempting to “panic hire” when you are enjoying the growth we’ve seen, but you have to take a longer-term view. I’d rather turn down new client accounts than fail to service them properly. This is what I mean about changing the way we do business. A Wall Street brokerage turning down clients? It’s unheard of, really.
Is there an announcement you’d like to make?
Well as a thank you for this lovely interview I’d like to offer your readers a gift. If they open a client account with Banc De Binary and quote “Investment Underground”
This interview was originally posted in full on Investment Underground