The CySEC’s warning against the PlanetOption broker

planetoption logo

The regulator of financial markets, Cyprus Securities and Exchange Commission (CySEC), which oversees and regulates the binary options brokers on a European scale from its headquarters on the Mediterranean island of Cyprus, has published another news release to warn traders and other investors against the PlanetOption broker. This broker is not authorized to operate in the European territory and does not have a license from the CySEC, hence PlanetOption does not comply with the regulation of European financial markets and therefore it is important to avoid this broker. 

Who is PlanetOption? 

From the legal point of view, the PlanetOption binary options broker is actually part of the company that bears the name of Ferrofortia Ltd; a company whose head office is based in Nicosia, the capital of Cyprus. However, when we take a quick look at the terms and conditions of use of the broker’s website, we can see that the Cypriot and Greek traders agree to conduct their binary options business through the Home Land Ltd company which is based in Seychelles and which does not appear to be directly related to Ferrofortia Ltd. 

planetoption plateforme

The PlanetOption broker offers most of the trading instruments that can be found among all binary options brokers. With this broker, trading with currency pairs (forex), indices, shares and raw materials is offered to traders. The return on investment varies from 70% to 91% and the return on loss is 15%.

Trading accounts require a minimum deposit of $250. The broker offers a bonus of 10% if the deposit is less than $500, 20% if it is less than $1000 and 30% if the deposit is between $1000 and $5,000. 

The CySEC, a strict regulator

The Cypriot regulator, CySEC, seems decidedly determined to continue its crusade against the unregulated binary options brokers. After having issued warnings against the NRGbinary and TraderXP brokers a few weeks ago, the CySEC now addresses the PlanetOption broker. Over a year and a half ago in May 2012, the CySEC regulator has also stated that the financial authorities of Cyprus would in the future require all binary options brokers should obtain a license and be recognized as companies that invest in securities (investment firms) in order to be able to freely operate their brokerage business on European soil. This is obviously not the case of all companies claiming to be binary options brokers. 

For unregulated binary options brokers, it is extremely difficult to obtain a license from the CySEC or other regulators. For example, the CySEC requires the broker to have a million euros of capital to provide a certain guarantee to both the regulator and the clients. Most new brokers do not have much money and therefore their license application gets rejected. Hence, we only recognize a few regulated binary options brokers at the moment; these are the brokers that have been able to prove themselves, are creditworthy and have an impeccable reputation, and have a certified license from the various regulators of international financial markets.  

Choose the right binary options broker 

As we have previously seen, the PlanetOption broker is a binary options broker that should be avoided since it does not correspond to the European standards of the CySEC with respect to financial activities. The CySEC, the French Financial Markets Authority (AMF) and FSA/FCA regulate several binary options brokers with whom opening a trading account is not risky. Brokers such as AnyOption, OptionWeb or TopOption that are regulated by more than 10 international authorities are the kind of regulated brokers in France and Europe that a trader should prioritize when considering to embark on the wonderful world of binary options. 

The non-regulated PlanetOption broker had the distinction to offer traders bonuses that could reach 30% of the deposit with OptionWeb and TopOption brokers that are both regulated by the French and European financial authorities. It is also possible to obtain bonuses on deposit which remain more attractive than those offered with PlanetOption. By being a reader, you can take advantage of a 100% bonus on the deposit when opening a trading account with OptionWeb. On the other hand, under normal circumstances this broker only grants a 20% bonus. If you decide to open a trading account with TopOption, your bonus will also be equivalent to 100% of your deposit instead of the initial 0%. Also note the guarantee that you will obtain for your loyalty allows you to be protected by our team in case a conflict is encountered with the broker of your choice.

0 0 0 0 0



This month's offer logo 24options

100% exclusive bonus (instead of 20%) on your 1st deposit from €250 on the best regulated broker 24 Option! (Bonus terms and conditions apply)