Binary options brokerage EZTrader.com (OTCMKTS:EZTD) has decided to pull back from almost all the sport sponsorships that it was involved in, as part of a strategic decision to focus and invest in compliance with regulatory requirements, Finance Magnates has learned. As part of this strategic move, the company terminated its three year sponsorship deal with the Italian Serie A club Roma AS last September. As a result, the brokerage logo was removed from the football club website.
“Other than sponsoring the women’s German national handball team and a small sponsorship in Japan, EZTrader has decided to stop all sport sponsorships,” the company exclusively commented to Finance Magnates. “We will be focusing on adherence with regulatory requirements, and may go back to sport sponsorships in the future.”
Using football sponsorship has not been uncommon in the binary options industry, especially for EZTrader.com. The brokerage has been engaged in numerous sponsorship deals with a variety of European clubs in countries such as Germany, France, Japan, the Netherlands and the United Kingdom.
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Big in Japan
Yesterday, we reported that UK premier league club Tottenham Hotspur removed all presence of the brokerage from its website, though the deal was meant to end with the end of the 2017-2018 season.
The binary options brokerage has also been actively pursuing expansion in France and announced a contract with Monaco last year. However after the serious prospect of a ban on digital advertising of binary options and forex in the country appeared, the parties agreed to sever the agreement.
EZTrader.com is a CySEC regulated brokerage operated by WGM Services Ltd. In addition, the brokerage entered the closed Japanese market a year ago, acquiring a license from the Financial Futures Association of Japan (FFAJ). Registered as a Securities Company with the FFAJ, EZTD adds its name to a short list of foreign retail brokers becoming regulated in the country. Other foreign based retail firms include Saxo Bank, OANDA, Dukascopy, AVA Trade and GAIN Capital.