Binary options fintech TechFinancials loses 24Option as client as it moves activities in-house

Binary options fintech TechFinancials loses 24Option as client as it moves activities in-house

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Binary options platform operator TechFinancials has lost its largest client – Richfield Capital, operating the brand 24Option, according to a filing with the London Stock Exchange (LSE). The broker has filed a notification regarding its intentions to terminate its agreement with the fintech with effect from 1 April, 2017.

Richfield Capital will migrate its trading activity to an in-house system. TechFinancials will also partake in the mitigation process, which may involve future services to be provided to the broker.

“The Company had prepared for such an event and has invested in a diversification strategy that commenced in 2016 to mitigate the effects of this,” TechFinancials said in a statement, adding that the event will have an adverse impact on its financial performance for 2017, although it expects Q1 income to be in line with the expectations. Due to the many unknowns, the broker will “defer a decision on paying a dividend until it has reassessed the likely outturn for the current financial year”.

TechFinancials also reported it expects to exceed its market expectations for 2016 and to report revenues of no less than $21 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of at keast $2.8 million. A final annual report for 2016 will be published in late April.

Other brokers that support TechFinancial’s platform for binary options include Optionsxo, 365 Binary Option, OptionsClick, 33Option, and Optionfair Partners, as well as Boss Capital and Vantage FX, among others.  In addition to binary options, the platform offers simplified forex and contracts for difference (CFDs) trading.

24Option is a Cyprus-regulated binary options broker. In November last year, the company launched a proprietary platform for trading in forex and CFDs.

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