Brokers News

Banc De Binary shuts down, new EU clients are no longer accepted

Jan 09 2017 15:35:49 GMT
By
Jonathan Smith , Find me on Google+

Update: on January 11, the Cyprus Securities and Exchange Commission officially announced that Banc de Binary renounced its authorization to operate as a Cyprus Investment Firm.

 

One of the leaders in the binary options trading market, Banc de Binary, closes operations. The Forexbrokerz team found out that EU residents are no longer accepted as clients through the broker’s sites.

 

According to online media Finance Magnates, after the consistently negative press publications that the company faced over the past year, it decided to close down operations and leave the binary options industry. The media cited an insider source - a high level official at Banc de Binary (BNB).

 

“I don’t see how we can continue operating under such scrutiny and public image,” the BNB employee told Finance Magnates and further explained that all arrangements have already been made to stop accepting new customers. “All client funds are being sent back to their original source… They are literally about to kill a five hundred-million-dollar company, but even worse – the icon of the binary option industry,” he noted.

 

Established in 2009, Banc de Binary is one of the first regulated binaries brokers. In Europe, it is operated by Banc De Binary (Cyprus) Ltd, a Cyprus Investment Firm (CIF), licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC).

 

The company also has another unit, BDB Services (Belize) Limited, which was regulated by IFSC, but lost its license due to incompliances with the local regulations in October 2016. This was a severe blow on the broker’s reputation, as Belize a popular offshore destination renowned for its milder regulation that places little focus on supervision of forex and binary options brokers.

 

Before that, Banc de Binary suffered several harsh fines from the Cypriot watchdog - in January, 2016 the broker was ordered to pay €350,000 in settlement to the CySEC. The regulator had found that the broker failed to comply with its requirements for authorization and has not properly informed clients about its services, the related risks, costs and charges that may occur.

 

Previous year, the broker also had problems with the US authorities. In February 2016, it was ordered to pay more than $11 million in settlement with the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for illegally offering off-exchange binary trading to US citizens.

 

Basically, Banc de Binary has been on almost every financial regulator’s warning list. So, it is no wander its reputation is ruined and it decides to leave the binary options business. In fact, the whole binary options market is under the attack of EU financial watchdogs, that keep coming up with various restrictions on the public marketing or distribution of this risky products.

TAGS: Banc de Binary  regulation  CySEC  binary options  scam 

More news about Banc de Binary

Broker Country Regulation Platform Min Deposit Review
Cyprus CySec MT4, MT5, Web $5 Review Website
US, UK, Australia CFTC/NFA, FCA, ASIC MT4, Web,
Mirror Trader,
Trading
Station,
NinjaTrader
$50 Review Website
UK, Australia, Singapore FCA MT4, Web,
ProRealTime,
2Dealer
$1 Review Website
UK, Cyprus FCA, CySec MT4 $5 Review Website
UK, Cyprus FCA, CySEC MT4, MT5, Web,
cTrader,
SuperTrader,
FxPro Markets
$100 Review Website
Seychelles FinaCom MT4 $10 Review Website
UK, Bulgaria FCA, FSC Web $150 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus CySEC MT4, MT5 $300 Review Website
New Zealand FMA MT4 $1000 Review Website

More Forex Brokers News

Admiral Markets amends margin requirements

Jan 19 2017 14:59:35

Admiral Markets, a European forex and CFD broker, said it is amending the margin requirements on the instruments it offers on some of the live trading accounts.    According to the broker, the changes will apply to all positions opened on Admiral.Markets and Admiral. Read more

eToro takes ETFs to a next level of Copy Trading

Jan 18 2017 15:20:51

Innovative forex broker and social trading network eToro launched a new investment service called CopyFunds, which takes exchange-traded funds (ETFs) to a whole new level.   ETFs allow traders to invest in a whole sector or market trend, not just in one company or commodity. Read more

XM is only forex broker in World Finance 100 2016 list

Jan 18 2017 12:47:05

XM, a European forex broker regulated by UK's FCA and the Cyprus Securities and Exchange Commission (CySEC), said it has been included in the World Finance 100 list for 2016. Read more

Interactive Brokers’ income before taxes increases by 66.2% in 2016

Jan 18 2017 08:39:23

Multi-asset automated brokerage Interactive Brokers (NASDAQ GS: IBKR) announced key financial and trading metrics for 2016 on Tuesday.  Leading US broker and a market maker reported its income before taxes for 2016 came in at $761 million, which is a growth of 66.2% compared to 2015. Read more

Swissquote’s social network Pulse now available on iOS devices

Jan 17 2017 15:06:27

A bank, a major FX and CFD brokerage, as well as a fintech pioneer, Swissquote announced that its recently launched social network, called Pulse, is now available on iOS devices. Read more

Morgan Stanley raises its stake in Plus500

Jan 16 2017 15:31:23

Morgan Stanley, the US multinational financial company who is among the major stakeholders in the London Stock Exchange (LSE)-traded forex broker Plus500 (LON:PLUS) has raised its stake in the company to pass the 6% threshold. Read more

IG urges its clients to take a stand with regards to FCA’s proposals

Jan 13 2017 08:36:04

Major brokerage IG Group (LON:IGG) encourages its clients to share their opinions about the recent proposal from the Financial Conduct Authority (FCA) to raise margin requirements for CFDs and spread betting, among other things. Read more

FXCM sees December, Q4 2016, annual trading volumes fall

Jan 12 2017 14:31:39

FXCM, the leading US forex brokerage saw a double-digit decline in its December retail and institutional trading volumes both on a monthly and annual basis, show the officially released company metrics. Read more

IG Group renames binary options to “Digital 100s”

Jan 12 2017 10:44:34

 IG Group, one of Europe's largest forex, CFD and spread betting (UK only) brokers has rebranded its binary options products and now calls them “Digital 100s”. Read more

It's official: Banc De Binary renounces Cyprus license

Jan 11 2017 12:43:49

 Banc De Binary, the largest and oldest regulated binary options broker has renounced its Cyprus license, several days after the first reports that it is planning to shutter its business and has stopped taking clients from the EU. Read more