Top Tech Providers Hurt By Israeli Ban On Binary Options
Carnage in the binary options world is spreading as more top names get shut down, give up their licenses or simply move away from the industry. The way things are going it won’t be long before all that’s left are CFD’s, forex, NADEX and scams.
In the most recent news TechFinancials, the once proud parent of 24Options, has decided to leave binary options altogether. In doing so it has sold off its last remaining binary option brand Option Fair to an entity called S Win Holdings. S Win Holdings purchased both Option Fair and MarketFinancials LTD, the Seychelles regulated subsidiary which operated the broker.
This move is only a mild surprise as the company has been plagued by the same issues facing the entire binary options industry; tightening regulation and the stigma of scams. It has been downsizing over the past year in efforts to stay ahead of the changing landscape but unable to cope with regulatory changes in Israel, it’s home country. While unexpected the company is still well positioned in the world of trading and will likely move forward with CFD’s, forex and cryptocurrency trading. The deal to sell Option Fair is estimated to be worth $400 million and not expected to negatively impact traders.
SpotOption has likewise ceased operating as a binary options provider in the wake of Israel’s ban on trading, marketing and exporting the trading software needed for binary options. The company has sent messages to all of its clients informing them of the need to change their subscription services to alternate trading facilities or else terminate. This means that in the coming months all those white label binary options brokers that have been plaguing the market with scams and fraud are going to disappear, or turn to some other type of trading. This move is truly shocking as SpotOption has been dominating the market for more than 5 years and will no now longer participate. The real question though is this, what brokers will be left?
In a more positive story the SEC has been able to recover more than $730,000 of money stolen by the EZTrader scam. The unfortunate fact is that it will be very difficult for the SEC to know who of the 4,000 clients to give the money too, and how much they should get. EZTrader was listed on the US OTC stock exchange but gave up that listing this summer in the wake of fines levied by the SEC. The fines were due in part to outrageous claims of profits used to lure in traders who later experienced heavy losses. In total EZTrader is thought to have taken in more than $2.5 million.
What does this mean for us traders? Less white label scams, fewer brokers to choose from but perhaps a higher quality broker in the end. And then there is cryptocurrency which I think the future of trading.