Binary options brokers regulated by cftc news
In their opinion, binary options were being marketed very aggressively and without full disclosure of the risks. The Israeli Parliament, Knesset, finally passed laws that ban binary options within their borders. What we can conclude from all the recent legislation against binary options trading is that it is no longer very favorable.
Unscrupulous brokers will still operate without a license, and they are. According to Haggai Carmon, an Israeli intelligence officer, binary options brokers have yet to shut down their operations in Israel. He also pointed out that the owners of these unscrupulous firms have had shady pasts.
As for 24option, the company has hardly had any run-ins with financial regulators, proving that they are indeed very reputable. The decision that led to 24option leaving binary options was perhaps purely strategic. The steps already taken by the financial regulators in the previously mentioned countries are just the start of what might become worse. These may really be the first domino to fall in the industry. Existing clients will still be able to trade binary options and make withdrawals and deposits to their trading accounts.
It is the new customers whose funds will be automatically deposited into a Forex and CFDs account. The process began in early July, prohibiting new European clients from trading binary options. On the following week, all other world regions served by 24option also experienced 24option leaving binary options. The parent company of 24option, Rodeler Ltd.
The company had already dedicated a lot of resources on the FX and CFDs platform to create a proprietary solution. This is not completely bad news for new clients, who will now know of a trusted brand in the Forex industry.
As for those who were still interested in the binary options industry, perhaps 24option leaving binary options should be a clue on the state of the industry. Stay up to date with the financial markets everywhere you go. Financial regulatory authorities in the United Kingdom, in much the same way as regulatory bodies in other countries, have found it very difficult to effectively combat financial fraud related to binary options trading.
Furthermore, the realization of this growing problem is occurring at the same time as a marked increase in reports of binary trading related fraud. The annual report of the financial regulatory authority, the Canadian Securities Administrators CSA , emphasized its continuing fight against binary options scams, devoting one whole section of the report to the issue.
As a result of rapidly increasing reports from victims of binary options fraud over the past three years, with losses for Canadian investors estimated to be in the millions, a committee formed to study the problem was transformed by the CSA into the Binary Options Task Force in Scharf, a worldwide collection of companies he owns, and affiliate marketers Michael Shah and the company Zilmil Inc.
Regulatory agencies in the European Union EU are continuing their crackdown on binary options brokers. In France, the AMF added five binary options brokerage firms to its warning list. All of the added brokerage firms are fairly new…. Following a recent similar move by the major brokerage firm anyoption, both Vantage FX and 24option have decided to move away from offering binary options trading in favor of forex, CFDs, commodities, and other investments.
Facing increasing media — and more importantly, regulatory — pressures, including the outright banning of binary options trading in a number of countries, Vantage FX and 24option have elected to join the growing parade of brokerage firms choosing to exit handling binary options trading.