The first days of 2017 have brought big news for the binary options industry. One of the biggest brokerages, Banc de Binary announced that it is closing doors. After clients of the brokerage receive their deposits back, they might start looking for an alternative venue to place their bets. Since Banc de Binary didn’t sell its client book and states that it intends to exit the business completely, a number of clients might be up for grabs.
Big brokers from the binary options industry are already charging ahead with renewed campaigning efforts. However with the new marketing requirements heavily limiting advertisement messages, their efforts could be in vain.
Binary options brokers have been employing a very successful model to attract deposits in recent years. They have been providing big ticket clients with big bonuses in order to entice them to deposit their funds. After the bonuses were credited to the account, the terms and conditions associated with the bonus took effect and the client had to roll over his deposit amount up to 30 times in order to withdraw funds from the account.
Under the new regulatory framework, brokers are no longer allowed to solicit clients with generous bonus offers. At the same time clients that are looking to place binary bets might already have an affinity towards a certain broker. The sheer size of Banc de Binary was massive enough to cause a stir in the industry, so targeting its former clients could be an opportunity.
The main goal of brokers should be to shift away from going after high net worth clients. Those are the most problematic for the industry and frequently complain to the authorities regardless of whether they have the legal grounds to do so. With the pressure on binary options brokers in Europe rising, marketing and client targeting should be shifting towards smaller clients that are looking for opportunistic bets.