More binary options brokers than ever are making deals with tops teams but it’s not all peaches and cream. Must read this now to learn the hot details.
A Growing Trend In Binary Options Marketing
There is a growing trend in the binary options business and no, it is not scams. That trend, thankfully, is on the decline due to aggressive actions by regulators and law makers but that is another story. The trend I am talking about is that of binary options brokers partnering up with major professional sports teams. One reason, to attract new customers, is obvious but not as important as another, to build trust. Brand awareness is one thing by itself but means something totally different when it is coupled with brand trust.
EZTrader Leads The Charge
A leader in this endeavor is EZTrader which signed another deal, this time with Italian football club Roma. The deal is good for three seasons and will allow EZTrader to promote itself at AS Roma home games and through the media channels and website. The companies CEO Shimron Citron had this to say about the deal; “As we continue to build our business and brand across Europe, it is increasingly important for us to have a partner in Rome. AS Roma is an ambitious and iconic club and, with Rome as its home, the perfect choice of partner for us.” The company now promotes four major sponsorships with teams and facilities across Europe including Tottenham Hotspur, DHB Handball and Grand National horse racing.
EZTrader is operated by a company headquartered in Tel Aviv but incorporated and listed on the US stock exchange under the ticker symbol EZTD. This does not mean that EZTrader is US regulated binary options, because it isn’t. The broker, EZTrader, is registered and listed with Vanuatu binary options regulation license number 300201. The company is focused on the EU and international marketplace but has yet to get CySEC, MiFID or other EU approvals.
ZoomTrader is another brand taking steps raise brand awareness and trust. This broker has recently entered an agreement with Italian team Bologna FC, an A ranked team. This deal follows a three year agreement made with Bundesligga team FC Köln. The full details of the deal with Bologna are not know but include access to marketing channels, hospitality tickets and other mutually beneficial arrangements.
A Fly In The Ointment
The quest for legitimacy through media sponsorships is not without hurdles. The very real prospect that digital and on-line marketing of binary could be banned in several countries makes such deals unproductive for both parties. EZTrader is one company suffering from such issues. It’s deal with AS Monaco, entered into last year, was severed under good terms because of France’s push to eliminate aggressive and irresponsible internet marketing practices well known to plague binary options.
Banc De Binary, a long time broker well know for scandal, recently entered a deal with Southampton FC only to back out of it two weeks later. Little in the way of details were given, CEO and founder of BDB Oren Laurent said that “after multiple discussions we have reached the conclusion that the expectations and results may not be in line and decided to mutually cancel the deal.” No word from Southampton FC has been forthcoming but speculation is rampant as to why the deal was canceled. Other top name brokers such as EZTrader and 24Option have been able to benefit from partnerships with UK teams.
The Bottom Line
The bottom line is that binary options will continue to seek inroads to new clients, new depositors and more revenue. At this time that approach includes sponsoring top name international sports teams in order to build brand recognition across the European continent, the UK and elsewhere. The problem that many brokers face, and the teams too, is the individual countries, and the EU for that matter, will continue to allow on-line marketing of binary options and if newly suggested restrictions will include licensed, regulated binary options brokers along with all the bad apples.