AFM Imposes €375,000 Fines on 24option for Illegal Activities

The Netherlands regulator, the AFM has fined 24option for aggressive pressure methods and misleading customers.

January 25, 2021 | AtoZ Markets – The European Regional Regulator, the Netherlands Financial Markets Authority (AFM), issued a public warning today expressing concern about the illegal and aggressive activities of Cypriot forex broker 24option.

Moreover, the Dutch regulator imposed a total fine of €375,000 on the legal entities associated with this brand, as well as on one of the managers.

AFM Fines Platform Operators

It is noted that the decision to fine the companies Rodeler (NL) BV, Rodeler Limited, Rodeler NL and Rodeler Ltd, operating the online platform, and Mr. A. Shkuri (CEO of Rodeler NL) was made by the Authority on December 18, 2020 ... The reason for this was the illegal activity of an online broker who offered citizens of the country to take part in trading on the OTC Forex and CFD market without having the appropriate license from the local authorities.

Related: Consob Bans 24Option From Providing Services in Italy

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Moreover, the Dutch regulator believes that the subsidiary of Rodeler used aggressive methods to involve citizens in high-risk investments, that is, misled customers about the risks associated with trading. The platform deliberately created the illusion that it primarily respects the interests of the client, but in fact, its actions led to the loss of funds, which became the profit of the company itself. Thus, on average, clients lost half of their investments. Meanwhile, the company's employees continued to persistently "huddle" customers.

The AFM regulator draws the attention of citizens to the fact that this is far from an isolated case of this kind. Since 2019, the Office has received hundreds of signals from affected users of foreign trading platforms offering CFD trading. Consumers often lost all their investments, from tens to hundreds of thousands of euros.

It should be noted that just last week, another financial regulator, the National Commission on Securities and Stock Market of Ukraine, added the 24option brand to its “black list”.

Read also: 24option Renounces CySEC License After FCA Ban

The Ukrainian regulator commented on the activities of this scandalous platform:

“A dubious forex broker, whose activities in our country are not regulated in any way, most likely simply appropriates user funds. The Commission does not recommend investing even small funds with these or similar forex brokers."

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