Finance Magnates has learned that 24option is the latest binary options broker closing its Israeli call center and moving its operation to another country. Its Israeli staff has already been informed that the office is due to close in May. The exact number of people losing their jobs isn’t confirmed but our sources estimated the relevant Israeli staff at over 150 before the move.
After already banning the instruments for Israeli traders, the regulators have been looking for a way to shut down all local companies offering marketing services to binary options brokers based abroad. On Tuesday during a parliamentary meeting the regulator kept pushing for a new law that will grant him powers to stop the operations of companies that are not working with Israelis at all.
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24option is one of the largest binary options brokerages in the industry, and it previously took steps to broaden its offering into supporting MetaTrader4, FX and CFDs. Some have speculated that this was done to make sure that its portfolio is diversified before binary options become too much of a liability for the firm to offer from Israel.
Expanding in the EU
The brand, which is operated by Rodeler Ltd, presently provides investment services mainly in Europe and is licensed by the Cyprus Securities and Exchange Commission (CySEC) as a Cyprus Investment Firm (CIF). CySEC has also applied pressure on binary options brokers, but rather than pushing them away like Israel the Cypriot regulator is encouraging them to bring call centers (and their many jobs) onshore.
The firm issued this comment exclusively to Finance Magnates: “During recent months, Rodeler Limited has taken actions to strengthen its presence in the EU, to continue leading the trading market. In order to adapt itself to the CySec’s latest circular, requiring all Cypriot Investment Firms to work only with sales services providers that are located within the EU, Rodeler Limited has substantially expanded in the EU, and will continue to operate and provide services under the highest professional and regulatory standards.
Rodeler Limited announced recently that it has expanded 24option’s trading services and launched a new CFDs and FX platform. The new all-in-one multi-product trading platform will grant access to a variety of markets and assets including stocks, commodities, currencies, and indices and will allow 24option’s more professional traders to diversify their transactions on its high-end interface. Rodeler has committed substantial resources for the developments of the new platform, continuing to provide the most advanced tools affording traders a faster, comfortable and safe trading environment.”