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Russia-oriented forex broker Profit Group ceases as of Wednesday trading in binary options, the broker said in a statement on its website. The broker did not explain the motives behind its decision.
Profit Group launched binary option trading about a year and a half ago when it added the BinaryTrader platform to its offering.
In binary options trading, 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 collects a profit, or loses money.
This type of instrument, however, is very controversial and often attacked by regulators due to its risky nature. In the forex world, binary options are the closest to gambling. All actions have inevitably affected investors’ attitude, which could be one reason why Profit Group ceased offering such binary options.
Profit Group is registered in Panama, an offshore destination, but its main market of operation is Russia. In 2015, in Russia the broker generated an average monthly trading volume of $1.9 billion and handled 6,900 active accounts, according to a report by Interfax-Center for Economic Analysis (Interfax-CEA).
The broker offers trading in forex, commodities, stocks and equities, and provides access to interbank markets.