Following our earlier report here on FortuneZ that Banc De Binary is preparing to eliminate all bonus promotions, we can now say this is going to be the new standard for the industry.
The self-regulatory organization of the binary trading industry EUBOA (European Brokers Association), held its third board meeting last week and continued to develop its memberships’ code of conduct as well as agreeing to some fundamental guidelines. One of the key focuses was on the Implementation of recent ESMA (European Securities Market Association) recommendations in relation to trading benefits (bonuses) and withdrawals.
On the 11th October 2016, ESMA updated its standard Q&A document ”relating to the provision of CFD’s and other speculative products to retail investors under MiFID”. In this update ESMA raised concerns on the widespread use of bonuses. EUBOA mirrors these recommendations and wishes to pro-actively eradicate the bad practices in relation to the use of bonuses as a retention mechanism and an encouragement for clients to trade beyond their limits.
The organization now recommends a complete termination of the use of bonuses when trading in binary options. Four of the licensed broker firms represented on the EUBOA board of directors have agreed to implement these changes within three months, these firms being Banc de Binary, Anyoption, Spot Capital Markets and Spotoption Exchange.
EUBOA is also recommending that its members implement the principle of the same-day withdrawal process, which was also recommended by ESMA in its October update of the Q&A document. This was agreed to by the members present on the board meeting and will be effective as soon as possible.
The orgenazation says it is committed to ensuring a regulated industry that reflects the recommendations of Europe’s head regulator, even though these have not yet been implemented by national regulators. Its Chairman Bjorn Anderson says: ”I hope all EUBOA members will follow through and make clear commitments to move quickly to ensure a fairer and more structured binary option market. We are serious and want to ensure an industry that better protects clients and eradicates bad practice.”