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”.
In essence, the Digital 100s are the same product and let clients place binary bets on volatility by answering a yes/no question.
They include the One touch, Ladder, Tunnel, Target, Hi-Lo and Up/Down types and have time frames from five minutes to a month. Clients can guess on movements of a whole set of assets: forex, commodities, indices and some economic news like US jobless claims and US non-farm payroll. Last year IG ventured into some political events binary options and offered betting on the outcome of the Brexit vote and the US presidential election.
IG Group was established more than 40 years ago and was the first financial services provider in the UK to launch spread betting. It also offers trading in forex, CFDs, stocks, bonds and cryptocurrencies like Bitcoin.
IG is regulated by UK’s Financial Conduct Authority (FCA), but its subsidiaries are also regulated by the relevant authorities in the countries where they operate (Australia, Japan, South Africa, UAE and Singapore). Besides, IG is listed on the LSE, and is a member of the FTSE 250.
IG's move to rename the binary options is understandable, considering that binary options are getting increasingly bad reputation both among clients and regulators, with the latter undertaking measures to curb the advertising or offering altogether of binary options.
Even though those measures are mostly not yet implemented and are still in the discussion stages, their effect is already felt.
Earlier this week the largest and oldest regulated binary options broker Banc De Binary renounced its Cyprus license and closed up shop
, leaving the industry experts speculating what its next move would be. According to sources from within the company, the main reason for the decision was the growing bad reputation surrounding Banc De Binary in 2016, but our guess is that the more likely reason are the hefty sums it had to pay in settlement - €350,000 to CySEC and $11 million to CFTC.