Interactive Option is a binary options broker with a solid reputation among traders. Present for nearly two years, this operator has made an almost effortless journey and has made a name for itself on the French market. However, today, things are rather unclear for Interactive Option, whose CySEC operating licence has been suspended for a period of 30 days since the beginning of March 2016. It may be returned to him provided that the current situation is regularized…
Some mistakes for Interactive Option
At the beginning of March 2016, the binary options broker Interactive Option was in the spotlight and not doing well: the suspension of his licence for 30 days was mentioned, knowing that this decision by CySEC was based on various violations.
To better understand the situation, we must return in 2015. During that year, Pegase Capital Limited, which is none other than the parent company of Interactive Option, was fined €300,000 for an offence: it uses third party companies to prospect and manage customer accounts.
The broker would then have relied on companies that did not have the legal authorization, as they were not in compliance with CySEC regulations. As a result, Interactive Option had to check the authorizations of these companies before joining forces.
Moreover, these companies would have deliberately caused losses to the traders for whom they managed accounts. Returning to the suspension of the account, this was done by a finding of passivity on the part of Pegase Capital Limited after this case in 2015. And to this are added other accusations..
Several charges against Interactive Option
Interactive Option has several things to blame itself for. Charges are officially brought forward by CySEC:
- traders do not receive adequate support from financial advisors. Even if the broker still communicated that he was not playing against his clients, it was found that certain actions by advisors were against the client’s interest;
- financial transactions are not carried out in complete transparency (the destination of traders’ money is unclear and withdrawals are not always made under the best conditions, involving delays that can exceed one month).
In the face of all this, the Cypriot regulator was quick to take action.
Temporary suspension of the Interactive Option license
CySEC’s decision to temporarily suspend the Interactive Option license (for a period of 30 days) is understandable. It should be noted, however, that if this operator reimburses its customers within the time limit, it could regain its licence. If this happens, CySEC will make a refund and its activity may be compromised. We should soon know the fate of Interactive Option.
In the meantime, if you are following our site, you should know that this broker had a good place in our ranking. We had tested Interactive Option’s services by finding nothing to complain about. We have never gone through a financial advisor, preferring to respect a money management base that we encourage you to practice. To return to binary options, you can count on brokers like OptionWeb or TopOption, two sure values in France.