Some time after Fair Binary Options started to warn traders about dangers lurking when signing up with EZTrader binary options broker. This is another confirmation of our unparalleled commitment to promotion fairness in binary options industry. Only higher standards in customer treatment are allowed and scammers are called out for what they are!
While CySEC awarded incense is a guarantee of better control of brokers conduct, EZTrader case shows why it may take some time for regulators to act. Fair Binary Options was among the first warning about negative experiences customers had with EZTrader. These violations of fair customer treatment included trading on behalf of customers which is forbidden, and not releasing customer’s funds. You can read more about such case where our website tried to help the client here.
Now, CySEC recognized EZTrader’s misconduct and revoked their license. In the mean time this broker managed to grow on such misbehavior so we do feel it is a bit late. But, as noted, this is another confirmation of integrity Fair Binary Options achieves in the binary options industry.
Specifically, the Cyprus Securities and exchange commission suspended the authorization of EZTrader mother company, WGM Services Ltd, due to suspecting serious violations of the Investment Services and Activities and Regulated Markets Law. WGM is suspected to have violated not just one, but three sections of the aforementioned Law.
Violations include sections concerning the basic operational requirements which include Clients’ funds, part IV in the law and ‘Safeguarding of clients’ funds,’ of the Directive DI144-2007-01 of 2012. Two other sections are: Section 67, ‘Own Funds’, of the Law and the Directive DI144-2007-05 of 2012 on the capital adequacy of investment firms.Section 69, ‘CIFs large exposures’, of the Law and paragraph 8, Part ΙΙΙ of the Directive DI144-2007-06 for CIFs of 2012 on large exposures.
Since, according to the Commission’s announcement, WGM Services Ltd cannot provide/perform any investment services/activities and must close all open positions in relation to clients’ contracts, if a client so wishes, and return to them all their funds and profits earned — we advise all traders once more not to deposit funds with EZTrader. Of-course, all readers are invited to report any irregularities they may experience with any of our brokers to Fair Binary Options.