FMA Warns Traders Against Trading with 24Option

This was the first case of a Cyprus-based firm to be banned from the European market.

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The Financial Markets Authority of New Zealand (FMA) has issued a serious warning directed to the well-known binary options firm called 24Option. The statement issued by the regulator is almost the same in nature as the ones that were issued by the Autorité des Marchés Financiers (AMF) of France and the Australian Securities and Investments Commission (ASIC).

This specific warning is oriented towards the New Zealand potential traders. The FMA strongly advises the local population be careful when deciding on trading with this particular brokerage. The additional part of the information is certainly the fact that 24Option does not have a registration nor authorization to operate in New Zealand.

24Option is however licensed by CySEC under the license number 312820 and authorized to provide online trading services to clients. This company is operated by Rodeler Limited. It seems that regardless of their regulation status, it has not prevented regulatory bodies in certain countries to warn the traders against these broker’s activities.

It has not been that long since ASIC also blacklisted 24Option and forbid the broker company to offer their services to australian traders. 24Option was singled out from over 40 other brokerage firms. AMF, the french regulator, also took a stab at 24Option, in August last year, and has banned it from providing or offering any type of service to french traders. This includes offering services, soliciting, contract signing and providing financial advice.

There was major coverage on the french ban last year, while at the same time, the press asked for a response from CySEC. The Chairwoman of the Cypriot regulator expressed her surprise at the turn of events commenting that this was the first case of a Cyprus based firm to be banned from the European market. She also highlighted how the ban was put in place over a couple of sentences placed on the company’s website which were assessed as misleading. She also noted that from 10,000 clients, there was only one complaint in total.

However, the Ombudsman of the Autorité des Marchés Financiers made a service report in 2015 where a total of 194 complaints received were regarding CySEC regulated companies. As an additional note, out of the total, an estimated 85% of the reports referred to companies based in Cyprus.

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