"Are binary options a crime?" is one of the most frequent searches on the topic — and almost always comes from two opposite people: those who already traded and are scared, and those thinking about starting who want to know if they "can". The answer requires separating two legal planes that are usually mixed up. Let's go carefully and precisely.
01The distinction that changes everything
The central point: Brazilian law treats those who offer and those who trade differently.
Trading as an individual
Not classified as a crime under Brazilian law. In Brazil, conduct is only a crime if there's a law defining it as such — and trading binary options on a foreign platform is not defined as a crime for the investor.
You can legally access an international broker. The rules that apply are from the Federal Revenue and Central Bank regarding remittance and taxation.
Offering/acquiring clients in Brazil
It's irregular. CVM Resolution 598/2018 expressly prohibits the offering of binary option contracts in the country.
The CVM issues stop orders and fines against platforms acquiring Brazilian clients — IQ Option and Olymp Trade have already been targeted. Fines for non-compliance can reach daily amounts.
In one sentence: it's not a "crime" for you to trade, but it's irregular for the platform to offer you the service here. In practice, this means you operate in an environment without any Brazilian legal protection — and that's where the real problem lies.
02What the CVM actually says
The CVM — Brazil's Securities and Exchange Commission — classifies binary options as closer to gambling/betting than legitimate securities. CVM Resolution 598/2018 expressly prohibits the offering of these contracts in Brazil. From 2020 to 2025, the CVM maintained a series of alerts and stop orders against foreign companies (including IQ Option, Olymp Trade, Deriv, Binary) for irregular acquisition of Brazilian investors.
The CVM itself, in its Alert Series, clarifies that persons domiciled in Brazil can invest abroad — as long as they follow Revenue and Central Bank rules. In other words: the door isn't closed for the individual; it's closed for the irregular offering.
03The real risk (that matters more than legality)
Here's what the question "is it a crime?" often hides: the practical question isn't whether you'll be arrested (you won't), it's whether you'll lose your money — and the chances are high. The facts:
- No local legal protection. Platforms operate offshore, in tax havens, beyond the reach of local courts. In case of dispute, there's no one to turn to.
- Unfavorable math. With 70-85% payout against 100% loss, the structure is statistically against you. It's estimated that about 80% of short-term traders lose money.
- Withdrawal blocking. The number one complaint. Money goes in easily; getting it out, often, doesn't.
What other regulators did: the European Union (ESMA) banned the sale of binary options to retail in 2018. The UK (FCA) permanently banned them in 2019. Not a coincidence — regulators that studied the product thoroughly concluded it's structurally harmful to consumers.
04I already lost money — can I recover it?
Being honest: it's very difficult. Since platforms are headquartered in tax havens, outside local jurisdiction, there's no local regulatory body to contact and recovery rarely happens. But there are steps worth taking if you were a victim:
- Gather evidence: transaction records, emails, screenshots of communication with the platform.
- Report to the CVM and police: even without guarantee of recovery, it feeds investigations and stop orders.
- Seek legal advice: in clear fraud cases (not just trading losses), consumer protection laws may offer some support. A lawyer evaluates your case.
- Beware of double scams: "recovery companies" that charge upfront to "recover your money" are, frequently, a second scam. Be suspicious.
05Regulated and legal alternatives
If what attracted you to binary options was the idea of trading markets with technology, there are regulated paths that offer this with real legal protection:
- B3 Options (stock options) — regulated market, with authorized broker and legal support. Real "options", not binary bets.
- Futures contracts (mini index, mini dollar) — day trading on B3 is regulated with huge volume.
- Forex via established broker — legal, with serious foreign regulators. See our broker reviews.
06अक्सर पूछे जाने वाले सवाल
Will I be arrested for trading binary options?
No. Trading as an individual is not classified as a crime under Brazilian law. What's irregular is the offering/acquisition by platforms in Brazil. You don't commit a crime by trading — but you trade without legal protection.
Why do people say it's "prohibited" then?
Because the offering is prohibited (CVM Resolution 598/2018). When people say "it's prohibited", they usually refer to this — the CVM prohibits platforms from offering here. The confusion comes from applying this prohibition (which is on companies) to the individual.
Do I need to report on my taxes?
Yes, if you had gains. It's treated as foreign currency capital gains. See our guide on binary options taxes. Not reporting exposes you to the tax authority — and being offshore doesn't exempt you.
Can I recover lost money?
It's very difficult due to lack of local jurisdiction over offshore platforms. Gather evidence, report to the CVM/police and seek legal advice. Beware of "recovery companies" that charge upfront — they're usually a second scam.
Looking for regulated markets to trade?
We show you the legal paths — with the same honesty as this page, and without pushing you toward any broker.