RoboForex Stops Binary Options Services, What's the Cause?

Shocking news came from RoboForex, a broker that has been presenting many attractive features. After quite a long time offering binary options trading via the "RoboOption" brand, RoboForex has finally decided to stop providing this product. Through his interview with Finance Magnates, Anton Ivanov, business development manager at RoboForex, revealed the reasons behind this big decision.

Switch To Stock CFDs

The development of stock CFD trading was the main factor behind the termination of the RoboForex binary options service. "At this stage, we see more prospects in the currency and stock markets. We are also developing a trading platform for stock CFDs, which has now entered the beta testing stage," said Ivanov.

So far, RoboForex's trading instruments tend to be limited to a variety of forex pairs. CFD options are only available on oil and stock index instruments, and even then, exclusively for users of certain trading accounts (Pro-Standard and ECN-Pro). Seeing the increasingly tight competition between brokers, including in the trading instrument sector, RoboForex's decision seems quite understandable.

Not Because of CySEC Appeals

Asked about the possibility of discontinuing the binary service due to CySEC circulars, Ivanov dismissed the issue. "This warning has absolutely no effect on our decision. We always try our best to comply with the standards proposed by CySEC," he said.

Previously, it was reported that the Cypriot regulatory body was under pressure from the European Securities Market Authority (ESMA) to improve service arrangements for the brokers listed under it, especially binary options trading providers, who have been known to be aggressive when trying to attract clients. As a result, CySEC issued warning letters to various brokers (especially binary options brokers) to improve service standards, especially those related to promotion procedures.

Solutions for Binary Options Traders

Due to the characteristics of binary options, which are often associated with an easy way of trading, Anton Ivanov recommends that his clients turn to social trading services. Such a feature, he said, is able to replace the role of binary options because they both provide solutions for newcomer traders as well as being able to provide more controlled risk control. "Binary options are mostly chosen by beginners who think that trading options is easier, even though it's not really. With the termination of the RoboOption service, we have better alternatives for them, namely CopyFx and RAMM," said Ivanov.

Previously, RoboForex provided alternative binary options trading through RoboOption for a long time, with feature support that cannot be understated. For example, the RoboOption binary service is licensed by CySEC under license No. 191/13. Although it does not develop its own platform, RoboOption cooperates with the most popular binary platform provider, SpotOption, to facilitate clients' trading activities. Various bonuses and extra facilities have also been offered by RoboOption, such as deposit bonuses, ZuluTrade signals, access to Autochartist, and binary trading educational programs.