Binary firm chooses to move ahead unregulated, how will traders react?
In an official announcement from CySEC binary option brand Trading247 has decided to opt out of any sort of regulation. The license now in question was granted to Trading247.com’s parent Magline Investments Ltd.
Some binary options brokers are apparently coming to the decision that it is not worth the trouble and expense of ‘being regulated’. In the forex world it is much harder to attract quality clients if you’re not licensed by a major recognized governmental financial regulator (eg FCA, CFTC, CySEC, MFSA, ASIC…), but not so in the binary options world.
Trading247 runs on the SpotOption platform. We will see in the near future if any other firms choose to go the same route. Reputation in the industry amongst trading communities and word of mouth still holds a lot of weight than any light regulation; as past history shows, even regulated firms can let down traders on service and financial security. With the adaptation of binary platforms from well established traditional forex brokers picking up, binary only firms must find ways to stand out from the crowd, we will see how the binary landscape moves ahead during the the summer months.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.