24option, a Cyprus-regulated binary options broker, is planning to abandon binary options in favor of forex and CFD instruments.
According to reports of the site Finance Magnates, the existing binary options clients of the brokerage may continue to deposit and trade, but the broker will stop accepting deposits from new EU clients this week. New binary options clients from the rest of the world will not be accepted from next week.
New clients of the brokerage will be able to deposit into forex and CFD trading accounts. 24Option launched its forex and CFD instruments several months ago. Similarly, another binary options broker – anyoption – recently shut down its binaries business and turned to forex and CFDs.
In the last year or so 24option has been in trouble with various national regulators.
Last summer France’s AMF banned it from operating in the country, because its owner, Rodeler Limited, has failed to comply with certain professional obligations. The ban was lifted several weeks ago.
This past June New Zealand’s FMA has also warned against 24option, following a lead from the Australian Securities & Investment Commission (ASIC).