Follow-up: TraderXP Intensifies Restructuring with Cutbacks on the Horizon

In September, we reported that the owners of a consortium of binary options brands, led by TraderXP, are examining the prospect of an initial public offering (IPO) at the London Stock Exchange’s AIM venue. It appears that the internal restructuring process is still taking place, as in its current form the key broker’s core activity could be impacted.

Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates has learned from several sources that TraderXP, which was said to generate monthly revenues of as much as $2-4 million, is set to reduce its staff and operations in the process. Many of the brand’s global contact numbers have been dormant in the last couple of days, and the live support chat services are inoperative.

Speaking to Forex Magnates, the group has stated that the internal structure merely involves the shifting of various operations from the main brand to smaller ones, with “virtually no effect on clients."

Back in September, the Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) issued a warning outlining that the TraderXP doesn't hold a license to operate in the country.

A month later, the announcement was followed up by a warning from the Bulgarian Financial Supervision Commission (BFSC) which also highlighted that the firm does not hold a BFSC license nor does it passport through MiFID.

In previous versions of the website of TraderXP, the contact details page did lead to a Bulgarian phone number, however at present that isn't the case.

What’s Next for Binary Options?

The race for the first initial public offering in the binary options space has recently taken yet another turn, with Anyoption stepping up its London Exchange listing plans. Another binary options broker seeking public recognition is EZtrader, which has filed for the OTCQB market in the US, and has recently signed sport clubs sponsorship deals in Germany and Holland.

With a considerable number of players in the industry cultivating similar aspirations, it remains to be seen what role TraderXP’s group will play in this hyper-dynamic field.

The instrument's simplicity and proximity to betting accounts for the growing popularity of the binary options translates into lucrative prospects for brokers and platform providers. The young industry’s evolving regulation agenda and promising growth potential are covered comprehensively in the dedicated binary options report written by the Forex Magnates Research Department.