Alarm bell rings as iOption files for bankruptcy days after being regulated

Although their website is still up and appears to be running, news reports, especially from Israel, seem to be converging on the truth of the fact that iOption, regarded until recently as a reliable binary options online brokerage firm, has actually shut down. What is perhaps most striking is that this development comes only a few days after iOption formally received its license from the Cyprus Securities and Exchange Commission, rendering it one of the few EU regulated binary options brokers out here.

Another worrying factor is that iOption was no “small fish” since reports raise the number of company employees, who suddenly have to go without pay and become jobless without an explanation, to almost 70 people. However, for those in the know, it appears that iOption’s bankruptcy did not come as a great shock, since the company has been having problems for some time now. Rumours about a possible buy-out from unknown buyers were being circulated for days among company staff and associates. Indeed, the employees did not get paid for October, while for the past several months the company was refusing to process withdrawals by traders, while at the same time payments towards affiliates were not made either. Since the dust has not settled down yet and things are still highly convoluted, with no clear and precise answers from any company officials or other authority, we will refrain from extracting any definite conclusions from this development.

 

However, please stay away from iOption and look to other reliable brokers for your online binary options trading. Also, if you are one of the iOption’s existing customers try to contact them, although all our efforts in this regard were to no avail, or take any other measures you deem necessary to safeguard your interests. At the same time, tread with caution as it appears that companies going bust and taking your money with them might be a new trend that could sweep the binary options industry as well in the days to come, since the number of brokers has spiraled, increasing the element of risk associated with it.

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George Milios

George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.

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