The names are already well-known across the industry for their infamous business practices. Both Royal de Bank and Futurmarket have been engaging in slippage against their clients and using aggressive sales tactics not informing their clients about the potential risks associated with trading binary options.
Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), was the first official regulatory agency to issue a warning on its website about the two white labels. The announcement revealed that both websites published false details about their alleged headquarters in the Grand Duchy of Luxembourg.
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Both websites have been blacklisted on the infamous list of binary options brokers which have not been authorized by the Autorité des Marchés Financiers within its jurisdiction. Fake headquarter details have been exposed by the CSSF, with the Swiss Financial Market Supervisory Authority (FINMA) being the next official regulatory body to scrutinize Royal De Bank and Futurmarket.
The watchdog has put both binary option brokerages on its negative list of unauthorized institutions. It also stated that both Royal De Bank and Futurmarket have not been listed in the commercial registry and have no physical presence in Switzerland, despite the information on their websites.
In an earlier report, Forex Magnates highlighted that the companies have been engaging in questionable business practices, claiming to have been headquartered in Luxembourg and having offices in Geneva, New York and Bahrain, which our reporters were not able to confirm.
The “About Us” section of Royal de Bank described the “institution” as being inspired by mid-century European banker families, while the alleged CEO of the company, Mark Bankhofer, stated that Royal de Bank is handling “over 40 billion monthly transactions with consistently performing results and positions itself as a broker of quality.”