A while ago, Fair Binary Options reported about potential scam hidden behind the name of EZTrader. EZTRader respresents itself as a serious binary broker in the industry, but we seriously doubted that there are some dangers hidden behind doing business with them. Now, we received another confirmation for our efforts in making binary options industry safer and more serious. We always support good brokers with ethical practices, but we also blacklist those who try to deceive traders or manipulate their trust.
Traders who want to feel secure while doing trading, are often looking for registered brokers. One of the regulatory bodies is CySEC, and usually it guarantees better control and safer trading, but as every other official can be quite slow when it comes to reacting on time. We at the Fair Binary Option were among the first to react in case of EZTrader scam, trying to warn all traders that this broker violating customer’s trust including trading on behalf of the trader and not processing withdrawal requests.
Cysec denounced EZTrading and their business practices, wich was soon followed by revoking their license. Unfortunately, in the meantime this broker made more money by scamming innocent traders and misusing their trust. In this case, we could all witness how slow regulatory bodies can be. Despite that, we noticed this broker on time and warned traders which is another proof of FBO’s integrity, professionalism and devotion.
In this particular case, the regulatory body, CySEC, suspended the authorization of mother company, WGM Services Ltd, and by that suspending the EZTrader as well. CySEC had every reason to suspect that WGM violated several sections of Investment Services and Activities and Regulated Markets 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.
CySEC released an announcement that clearly states how WGM Services Ltd is not authorized to provide or perform any investment services or activities. Besides that, mother company has to close all open positions in relation to clients’ contracts, if a client so wishes and return to them all their funds and profits earned. Fair Binary Options would like once again to warn about EZTrader and invite all readers to report any suspicious behavior by any brokers.
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