A surprising development has occurred in the Australian binary options market, one that could spell the end of the good times down under for both brokers and traders. DMM Option has advised its clients that it will cease providing binary options accounts and trading services as of Saturday, November 22, 2015.
Launched just in October 2014, DMM Option is the trading brand of DMM FX Australia Pty Limited and DMM FX Australia, supported by one of the largest FX brokers in the world, Japan’s DMM Group. The Australian licensed subsidiary of the Japanese powerhouse was launched specifically to reach the global markets beyond the shores of Japan.
The firm now states that it is shutting down the binary options service in order to focus on its forex offering and ensure its quality. While it is possible that the brand was not successful enough in attracting clients, therefore dragging down the performance of DMM in Australia, it is not very likely that an operation with such a backing will give up on a market after just one year. It has also just revamped its offering with MarketsPulse’s 10Trader desktop platform and fifteen-seconds binary options a few months ago.
New Economic Calendar Feature Added to FBS Personal Area and AppsGo to article >>
Considering this, it is possible that DMM has simply concluded that the Australian subsidiary does not provide a good enough base from which to target the international binary options market and is therefore no longer willing to invest in it. Long perceived as the go-to destination for brokers wishing to break into China and other Asian markets based on its respected financial services license, Australia has recently been tightening its regulatory environment – intentionally becoming less hospitable for online brokers.