8 June, AtoZForex – right after breaking news of another binary options broker RoboOption closing its operations, one more shocking update entered the media. One of the SpotOption’s biggest brands OptionRally fires 50 staff members as a part of restructuration.
The history of OptionRally
The brokerage was founded back in 2010 by a group of business partners with ex-SuperDerivatives software engineer, Tal Fromchenko as a Head. In its previous initial form, the company had 85 staff members in its Tel Aviv office in 2012. The sales staff was mostly busy with selling binary options services to retail clients across the Middle East and Europe.
The company decided to expand in 2013 when they acquired a license from the Cyprus Securities and Exchange Commission (CySEC). Later on, OptionRally opened another office in Limassol, Cyprus.
OptionRally fires 50 staff members: what is next?
OptionRally currently has offices in Limassol, Cyprus and Tel Aviv, Israel. It operates through the platform called SpotOption. The firm has recently started a complete restructuring process, firing approximately 50 staff members. The office administrators and retention staff still remain in the company, while the exodus mainly touched the sales department.
Back in 2012, The Israel office was full of activity using the model which is popular among binary options brokers. It consists of contacting the leads in the lists attained from entities in online gambling industry. This is done with the purpose of extracting first-time deposits, which are most likely blown away the same day.
The AtoZ Forex team tried to reach out to OptionRally through phone but the company didn't reply. When we tried to contact through their website, the company's website operator gave us following comment:
We remind that in the past few years majority of the regulators (AMF, CySEC, etc.) gave warnings against a number of brokerage firms in the OTC binary options industry. While possessing the power of pointing at the firms who lack proper authorization, the watchdogs have no legal jurisdiction to prevent potential investors from working with unreliable companies. Therefore the regulators strongly advice traders to keep an eye open to the warnings and be careful when choosing a company to invest their assets in.
See also: CONSOB Binary Options warning: Boss Capital
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