RoboForex winding up binary option activities

RoboForex winding up binary option activities

- in All News, Featured News
RoboOption

Forex brokerage RoboForex has suspended binary options trading and RoboOption, its binary options business, has closed account registrations and no longer takes on new clients, according to RoboOption’s website. Neither of the companies has come out with an official statement explaining the move.

When attempting to open an account, investors face an unexpected message saying “registration of new RoboOption accounts is not available at the moment”. Instead of allowing them to open new demo or live accounts for binary options, RoboOption redirects candidate-clients to open an account with its parent, RoboForex.

RoboOption closed registration

“The registration of new accounts was suspended, as RoboForex has made a decision to focus on the development of another projects,” a company representative said when contacted. No details were provided.

However, RoboForex does not offer binary options and trading in such instruments “at the moment is suspended”, according to the company representative. This means that binary options are no longer part of the brokerage’s offering.

In binary options, investors guess whether the price of a certain instrument would go upwards or downwards within a pre-determined time frame. Once the time is up, the option is deemed expired and the bet is settled. Depending on the outcome, a trader either loses everything, or collects a profit of up to 80%-85%, and sometimes even up to nearly 100%.

Due to its high-risk nature and the high loss rate, however, binary options trading is strictly forbidden in some countries. An increasing number of financial regulators have been coming up with warnings against binary options brokers either because they operate unauthorized or they represent a fraudulent scheme and take advantage of investors.

RoboForex launched RoboOption in August 2014. Since binary options is no longer offered, RoboForex’ clients are able to trade in a number of other instruments available with the broker – currencies, metals and contracts for difference (CFDs). The broker has been making its bonus programs for active clients more attractive by improving their conditions – lowering the requirements for participation and increasing payouts. Its latest move was to set new annual percents payouts for active clients and brokers using its “Up to 10% on account balance” program.

The brokerage group is headquartered in Cyprus’ Limassol and has representative offices globally. It consists of the holding company RoboForex Financial Group, and its units Cyprus-regulated RoboForex, Belize-regulated RoboTrade Ltd. and New Zealand-based RoboForex LP.

Source: RoboForex

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