The Financial Markets Authority (FMA) of New Zealand has issued a warning against 24Option, a well-known binary options brokerage. The regulatory authority’s statement is based on similar alerts made by the Australian Securities and Investments Commission (ASIC) and the Autorité des Marchés Financiers (AMF) of France.
The FMA’s warning advises locals to exercise caution when considering the online trading services offered by this broker. Furthermore, the regulator clearly states that the company is neither registered nor authorized to operate in New Zealand.
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24Option is a company operated by Rodeler Limited, and authorized to provide online trading services under CySEC license number 312820. This, however, has not deterred certain countries from alerting trading communities against 24Option’s operations.
In July of last year, ASIC blacklisted the firm from approaching Australian traders, among more than 40 other brokerages. The other companies on the list included CherryTrade, OptionRally, Banc de Binary, Opteck, IQ Option Limited, and more. The French regulator warned traders against trading with 24Option in August 2016, and has banned the company from soliciting, entering into contracts, and offering/providing financial advice to clients.
Finance Magnate published an exclusive story regarding the French ban of 24Option a year ago, and separately reported CySEC’s response to the Cyprus Mail newspaper. Demetra Kalogerou, the Chairwoman of the Cypriot regulator, commented that this instance of a Cyprus-based company being banned from the European markets was a first. Kalogerou also stated: “This decision was made over two sentences of promotional text on the company’s French website, which were deemed misleading, plus a single complaint out of some 10,000 clients.”
According to the AMF’s Ombudsman service report from 2015, 194 complaints in total came in from clients regarding companies regulated by CySEC. An estimated 85 percent of the complaints were about Cyprus-based firms.