The aggregate weight of negative media scrutiny and legal woes facing binary options appears to be too much to bear for Vantage FX. Consequently, the Australian brokerage has decided to cut the cord on its binary options offering with immediate effect and focus exclusively on its FX suite.
Binary options have certainly fallen out of favour amongst many investors and jurisdictions in recent years. Between the outright ban in certain countries and negative reputation following frauds and scams, many brokers offering such services have opted to either steer clear or simply adopt an addition-by-subtraction strategy to their existing binary options offerings.
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Rethinking its focus
As an ECN forex broker, Vantage FX has ceased offering binary options trading for its clients – the instrument no longer appears on its website. Vantage FX will instead focus on FX, commodities, and indices trading on the MetaTrader 4 (MT4) platform. In rolling back its binary options offering, Vantage FX is turning the page on the instrument, conceding its poor fit for its business.
The group clearly felt that the negatives of the product outweighed its limited positives. Indeed, David Bily, Director of Sales and Marketing, Vantage FX, commented: “We always used binary options as a no-fuss market that new traders would start learning through and then transition to forex as they grew.”
In light of the shift, Vantage FX has facilitated a transition to MT4 for its binary options clientele, which it clearly feels is a safer and more transparent trading option. Vantage FX is hardly the first broker to abandon its binary options offering – earlier this week, online brokerage company 24option revealed its own plans to leave the binary options space, undergoing a strategic shift to redouble its efforts on FX and CFDs.