Forex and contracts for difference (CFDs) broker RushBucks has ceased its affiliate programs for forex and binary option instruments, according to a notice send out by the broker to affiliate partners. The broker no longer accepts forex and binary options traffic as of 5 March.
RushBucks ensured partners all pending affiliate commission will be delivered as planned. The broker hinted it will launch a new type of affiliate program, called Top Converting, but it provided no details as to what its parameters would be.
The broker did not explain the motives behind its decision to stop offering forex and binary options via affiliates.
RushBucks works with a number of affiliate partners, including Royal Capital Trade and IbexFX. It offers several affiliate programs – either for attracting traders or for recruiting other affiliates.
The decision comes as a response to the market crackdown in Israel by the local authorities, finance news media LeapRate reported, citing unnamed RushBucks representatives and affiliates. The Israeli Securities Authority (ISA) is working on regulatory changes that would enable it to ban local brokers from soliciting customers abroad. Israel is known as a hub for binary option call centers. Brokers are already forbidden to offer binary option instruments within the country, but they can still target foreign investors.
According to LeapRate, RushBucks is considering using its affiliate network to promote other online products, as most of its employees are based in Israel.
The regulatory changes in Israel, paired with those in Cyprus, have caused many brokers to transfer their operations in Israel to the EU. The Cyprus Securities and Exchange Commission (CySEC) is setting new standards for binary option brokers and their employees who provide information to customers about the entity’s services. One of the new rules requires Cyprus Investment Firms (CIFs) to provide certain activities internally, either from its head office or from its branch situated in another EU member state (which Israel is not).
Many CySEC-regulated brokers have closed their contact centers in Israel. Recently, binary options brokerages 24Option and anyoption closed their Israeli call centers and laid off some dozens of employees in the country. Brokers OptionRally and OptionBit also cut most of their staff in Israel who served English-speaking customers.