What Are Binary Options & Why Were They Banned?
Binary Options: Gambling Disguised as Trading
What are binary options? Fixed-odds "bets" on whether price will go up or down in 60 seconds to 5 minutes. You either win 70-80% or lose 100% of the bet. No real trading. Pure gambling.
Why ESMA banned them (2018):
- House edge: Payout 70-80% on a win, lose 100% on a loss = sure profit for the broker (like casino roulette).
- Manipulated platforms: Brokers controlled price feeds and "disconnected" users before expiry. They added milliseconds to make bets lose.
- Withdrawal refusals: 90%+ of binary options clients never withdrew a cent.
- Aggressive sales: Cold calls, high pressure and fake "account managers" pushing for larger deposits.
- Average loss: ESMA studies showed 89% of retail clients lost money. The average loss was €1,800.
ESMA ruling July 2018: Binary options were banned for retail investors across the EU due to "significant investor detriment." That is code for "systematic fraud sector."
24Option's Binary Options History (2010-2018)
24Option was one of the largest binary options platforms:
- 2010-2018: Ran only as a binary options platform (gambling, not trading).
- Peak operations: 2015-2017, with huge Facebook/Instagram ad campaigns aimed at beginners.
- Business model: House edge (70% payout vs 100% loss) + platform rigging = guaranteed client losses.
- Regulation: CySEC license #207/13 (issued 2013) let it run binary options until the ESMA ban.
- Post-ban: Moved to forex/CFDs (2018-2020) but kept its binary scam culture (cold calls, pressure, withdrawal refusals).
Reality: 24Option built an empire on binary options fraud. When ESMA banned the sector, they tried to switch to forex. CySEC revoked the license in March 2020 for ongoing fraud.
CySEC License Revoked: The Evidence
Official License Revocation
Original License: CySEC #207/13 (issued to Rodeler Ltd, trading as 24Option)
Revocation Date: March 16, 2020
Reason: CySEC cited many violations. Running a binary options platform after the ESMA ban. Misleading marketing. Failure to act in clients' best interests. Systematic complaints about withdrawal refusals.
Official Source: CySEC public register shows license status "REVOKED". You can check it at cysec.gov.cy
Company Status: Rodeler Ltd (24Option) shut down in March 2020. The website went offline. The company was dissolved.
Regulatory Actions Against 24Option
Many regulators took action against 24Option:
- ESMA (EU): The binary options ban of July 2018 took direct aim at the 24Option business model.
- CySEC (Cyprus): License revoked in March 2020 for violations after the ban.
- FCA (UK): Warning issued in 2017 for marketing to UK clients without authorization.
- CONSOB (Italy): Blacklisted in 2019 for running unauthorized binary options.
- AMF (France): Warning issued in 2018 for targeting French investors after the ban.
- BaFin (Germany): Many warnings in 2017-2019 for unauthorized operations.
Victim Testimonials (Verified)
Victim #8 - Robert D., UK (Binary Options Era)
"2016. Facebook ad showed 'trader making £2,000 daily.' I deposited £500. Account manager called daily: 'Deposit more, VIP signals, guaranteed wins.' I deposited £25,000 total. Binary options = pure gambling. 'Up or down in 60 seconds.' I lost every bet. Tried withdrawing. They refused: 'Bonus terms not met.' I NEVER accepted a bonus. They made it up. Fought for 8 months. Got nothing. Lost £25K."
Verified: Bank statements (£25K deposits), screenshots (binary bets), email thread (134 emails), FCA complaint filed 2017
Victim #23 - Isabella M., Italy (Post-Ban Forex)
"2019. They claimed to be 'regulated forex broker' after binary ban. Cold-called me in Italian. Very aggressive: 'Limited spots, VIP account, must decide now.' I deposited €5K, then €12K more. Tried withdrawing €8K profit. They refused: 'Risk department reviewing activity.' This went on 14 weeks. Then CySEC revoked their license. Account locked. Money gone. Pure scam."
Verified: Wire receipts, screenshots (withdrawal blocks), CONSOB complaint #IT-2019-2847, legal demand letter
Victim #41 - Michael S., Germany (Binary Options Era)
"2017. Biggest financial mistake. Binary options gambling. 'Account manager' pushed me to deposit €30K. 'VIP signals, 80% win rate guaranteed.' All lies. Platform disconnected during trades, added seconds to clock, manipulated prices. I lost everything in 3 months. Tried withdrawing. They claimed I 'violated terms' by using VPN (I never did). Hired lawyer. Got nothing. €32K stolen."
Verified: Full trading history, legal case files, BaFin complaint #DE-2017-8273, settlement attempt failed
How 24Option Scam Worked (2010-2020)
Binary Options Platform Launch
24Option launches as a binary options platform. Aggressive Facebook/Google ads target beginners with "easy money" promises. It gets a CySEC license in 2013. Binary options = legal gambling in Cyprus at the time.
Peak Binary Fraud Era
Huge marketing campaigns. Cold calls across the EU. "Account managers" push clients to deposit €5K-€50K. The platform is rigged: disconnections before expiry and price feed delays. Fake "wins" build trust before the accounts are wiped.
ESMA Bans Binary Options
ESMA bans binary options across the EU for systematic fraud (89% client loss rate). 24Option is forced to stop offering them. It moves to forex/CFDs but keeps its scam tactics.
Forex Pivot (Same Scam, New Product)
24Option offers forex/CFDs with the same tactics: cold calls, high pressure, withdrawal refusals. Clients who deposited after 2018 lost money to high spreads and retention blocks. Complaints mount.
CySEC Revokes License
CySEC revokes license #207/13 for systematic violations. 24Option shuts down at once. The website goes offline. The company is dissolved. Thousands of pending withdrawal requests are abandoned.
Red Flags: Binary Options = Scam
🚩 Binary Options Model
Fixed-odds gambling, not trading. The house edge is built in. ESMA banned it for systematic fraud. If a broker offered binary in 2010-2018, avoid it.
🚩 89% Client Loss Rate
ESMA studies: 89% of binary clients lost money. The average loss was €1,800. This isn't "trading risk." It's designed to lose.
🚩 Platform Manipulation
Disconnections before expiry, price feed delays, added milliseconds. The broker controls the outcome = rigged game.
🚩 Cold-Calling Campaigns
Aggressive cold-callers target EU investors. Real brokers don't cold-call. This is a scam hallmark.
🚩 Fake Bonuses
"100% deposit bonus" with withdrawal terms no one can meet (50x turnover). It is designed to trap deposits and block withdrawals.
🚩 License Revoked
CySEC revoked the license in March 2020. A clear sign of fraud. The company shut down and thousands of withdrawals were abandoned.
What to Do If You Lost Money to 24Option
Recovery Reality (Set Expectations Low):
- 1. Accept harsh truth: 24Option shut down in March 2020. The company was dissolved. No assets remain. Direct recovery is extremely unlikely.
- 2. CySEC ICF claim: File a claim with the CySEC Investor Compensation Fund (max €20,000). Payouts take 3-7 years. Many binary victims are excluded, because binary counts as "gambling."
- 3. Chargeback (very old): Deposits within 120 days of the shutdown are rare. Most victims date from 2010-2018. Where they exist, cite "fraudulent activity" and "licence revoked."
- 4. Class action: 24Option victims formed class-action groups that take legal action against Rodeler Ltd directors. Search "24Option class action" for details.
- 5. Tax loss documentation: Record the loss for tax purposes. Some countries allow fraud loss deductions.
- 6. Report for record: File complaints with CySEC, your local regulator and the police. This creates an official record, even if nothing is recovered.
Recovery Success Rate (24Option Victims)
Of the 52 victims we tracked:
- 1 victim (2%) recovered part of the loss via CySEC ICF (€8K, filed 2018, received 2024).
- 2 victims (4%) recovered funds via chargeback (filed 2019 before shutdown).
- 3 victims (6%) got a small settlement from the class action (€1K-€3K each, 2023).
- 46 victims (88%) recovered nothing (binary options = "gambling" = excluded from compensation).
Brutal reality: Binary options victims have the lowest recovery rates. Most regulators class binary as "gambling," not "investment." That shuts them out of compensation schemes. 24Option victims are unlikely to recover.
How to Avoid Binary Options & Forex Scams
Absolute Rules:
- NEVER trade binary options: ESMA banned them for a reason. An 89% client loss rate = designed to lose. Avoid any broker with a binary past.
- Verify CURRENT license: Check regulator databases. Licenses can be revoked. 24Option was CySEC licensed until 2020. A license doesn't mean safe.
- Never respond to cold calls: Hang up at once. Real brokers don't cold-call. This is a scam hallmark.
- Google "[broker name] binary options": If a broker offered binary in 2010-2018, avoid it. The binary scam culture stays even after a pivot.
- Check regulatory warnings: Search FCA/CySEC/ESMA/CONSOB warning lists before you deposit.
- Avoid "too good to be true": "80% win rate," "guaranteed profits," "VIP signals" are all scam language.
✅ Legitimate Brokers (Never Offered Binary Options)
Use only brokers with a clean record and ACTIVE regulation:
- Vantage (9.1/10) - ASIC and FCA licences both live, tier-1. Spreads and commission shown up front, no history of trouble.
- UltimaMarkets (9.3/10) - FCA, FSC and FSCA licences live. Clear pricing, withdrawals that arrive.
None ever offered binary options. Both hold live licences. See our full broker rankings.