Follow-up: TraderXP Intensifies Restructuring with Cutbacks on the Horizon

After reporting on a potential association of binary options brands for a joint IPO, Forex Magnates has set out to

traderxp logoIn September, we reported that the owners of a consortium of binary options brands, led by TraderXP, are examining the prospect of an initial public offering (IPO) at the London Stock Exchange’s AIM venue. It appears that the internal restructuring process is still taking place, as in its current form the key broker’s core activity could be impacted.

Forex Magnates has learned from several sources that TraderXP, which was said to generate monthly revenues of as much as $2-4 million, is set to reduce its staff and operations in the process. Many of the brand’s global contact numbers have been dormant in the last couple of days, and the live support chat services are inoperative.

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Speaking to Forex Magnates, the group has stated that the internal structure merely involves the shifting of various operations from the main brand to smaller ones, with “virtually no effect on clients.”

Back in September, the Cyprus Securities and Exchange Commission (CySEC) issued a warning outlining that the TraderXP doesn’t hold a license to operate in the country.

A month later, the announcement was followed up by a warning from the Bulgarian Financial Supervision Commission (BFSC) which also highlighted that the firm does not hold a BFSC license nor does it passport through MiFID.

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In previous versions of the website of TraderXP, the contact details page did lead to a Bulgarian phone number, however at present that isn’t the case.

 What’s Next for Binary Options?

The race for the first initial public offering in the binary options space has recently taken yet another turn, with Anyoption stepping up its London Exchange listing plans. Another binary options broker seeking public recognition is EZtrader, which has filed for the OTCQB market in the US, and has recently signed sport clubs sponsorship deals in Germany and Holland.

With a considerable number of players in the industry cultivating similar aspirations, it remains to be seen what role TraderXP’s group will play in this hyper-dynamic field.

The instrument’s simplicity and proximity to betting accounts for the growing popularity of the binary options translates into lucrative prospects for brokers and platform providers. The young industry’s evolving regulation agenda and promising growth potential are covered comprehensively in the dedicated binary options report written by the Forex Magnates Research Department.

 

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