Alpari UK Exiting from Binary Options, Cites Regulations
Alpari UK has notified clients that it will no longer be offering binary options trading starting next week. The news
In a letter to client, Alpari UK has informed them that starting February 10th, they will no longer be offering binary options trading to clients as they stated, “We have taken the strategic decision to stop offering binary options due to regulatory considerations.” In the letter, Alpari didn’t provide any additional information as to what the regulator considerations are, and as of publishing time, requests for comment from the broker by Forex Magnates were yet to be answered.
The news comes as a bit of a surprise, as the broker only launched the product in September of last year using technology from binary options provider, SpotOption. In terms of UK regulation, binary options fall under ESMA guidelines as a financial product and are available to market to EU and UK customers with a FCA or similar EU financial license. Among UK firms providing binary options trading, publicly traded IG Markets as well as GAIN Capital’s recent acquisition, GFT UK, both offer binaries to their customers. For Alpari, it’s not a complete exit from binary options as they will continue to offer the product in their RU unit.
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FAIL!
Trust me their will be plenty more. 1 these BO platforms are nightmears to deal with, all advertise all in one but not one of these solution providers have anything close to what they advertise to be. Between the risk ( ioption closed do to loosing the other side of large bot bets ) , administrations and support these solution are stone aged. 2 the attempt to marry forex to binary is a huge train wreck. As binaries are clearly a betting product and will gain in popularity but to try group or regulate them as a financial offerings will… Read more »
Binary is not fail , you can not run Binary like a FX book,. You have to present the offering cleanly , remove the crooked marketing schemes, remove the shady option types clean the UI, and a variety of other items.. You should also never use the third part companies to run a binary book, its just taking a piece of the pie out for no reason.
AlpariUK=FAIL…not as much the asset class
Too bad, since Alpari was not like the other random Cyprus brokers. I’d rather trade at a binary options broker that first and foremost is a reputable forex broker than an obscure binary-only broker operating from some random island.
It appears that Alpari was too fast with the creation of its UK division though, and they didn’t like taxes either:http://www.optionsadvice.com/news/alpari-shuts-down-uk-binary-options-division/
nice try to spread false roomers!!!
This had nothing to do with Tax’s, and everything to do with unstable solution and keeping within regulatory compliance.
@Alex – you are absolutely correct. TradeTools FX has multiple regulated FX brokers who are now offering BO alongside FX via MT4 and our WebTrader. All of these partners are profitable while providing a service their clients demand. @Tobe2 – you are correct as well. This is why TTFX gives the broker complete control over risk settings, payout %’s, expiry and instrument settings. @John – agreed that Alpari is a name that brings credibility the BO industry. Keep in mind, they are only exiting BO trading under their UK division. TTFX has multiple partners who are regulated by ASIC (AUS)… Read more »
I agree Ron, Tim looks to be directly using this thread for damaged control and pumping their plug-in that I didn’t even know Alp was using .` I know of spotoption and markets pulse but had no idea that also had TTFX was in that mix,, never the less Here i’m taking a “Put” “bet” that BO will be out of both all reputable brokers and Cypress by summer . Bo is not a financial instrument it’s a “bet on a financial instruments directions” . and anyone, broker, regulator mixing punting/betting with financial is asking to be viewed as “”… Read more »
@Ron – quite the opposite. We are competitors. In fact, a few of our partners were former SpotOption and Tradologic clients. Maybe Alpari will be next??? @Tobe2 – not a marketing plug but a response to your comment that said “BO platforms are nightmares to deal with”. While we cannot speak from experience on this matter we realize that FX brokers want to have total control of their BO offering including risk management. This is what our solution offers. “I was referring to the BO solutions providers.” – we are in fact a BO solutions provider but we are not… Read more »
It’s interesting that Alpari have come to this decision. Markets.com though regulated in Cyprus, took the root of creating a separate ‘brand’ for their Binary Options enterprise. I wonder if digging deep enough would reveal other brokers that have taken this path.