Fortrade Broker

iOption Bankruptcy

iOption Bankruptcy

On Sunday November 10th, iOption notified its sales team and affiliates to stop sending new traders to their website. Further investigation shows that iOption is bankrupt. There apparently has been problems now for a couple of months over at iOption. Apparently trader withdrawals were not being processed in a timely fashion and other financial problem where happening.

iOption was a very popular binary options broker owned by IOPTION GLOBAL GROUP 2012 LTD. They just announced on October 31st that they received their license from the Cyprus Securities Exchange Commission (CySEC). When we checked CySEC’s website we could not find a license number for iOption. iOption is located at Akara Bldg., 24 De Castro Street, Wickhams Cay 1, Road Town Tortola British Virgin Island.

We spoke with an employee of iOption to see if we could get any answers regarding what will happen with trader accounts or how many traders iOption had. The employee had no answers for us. Employees apparently have not been paid their wages for October. We can only wait and see what will happen.

Although this does not look good for the binary option industry, it is the natural progression of a young industry. Remember there are over 200 binary option brokers all vying for the same business. There will be continued bankruptcies and consolidation in the industry. The fact that iOption was not a regulated broker, or only recently applied for regulatory oversight from CySEC leaves unknown what will be with traders account balances.

Who is a trader of iOption suppose to turn too? Your local regulator will not be much of a help because they did not regulate iOption, see list of regulators here.

There are currently less than ten binary option brokers regulated by CySEC. Read coverage of regulated binary option brokers here.