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Screenshot of a breaking news alert e-mail from Q2 2017
LeapRate Exclusive… Binary options platform providers TechFinancials Inc (LON:TECH) has seen its shares trade down more than 25% this week, sinking below its IPO price for the first time since TechFinancials’ IPO back in March.
Originally placed at £0.27 in mid March, TechFinancials had seen its shares climb to as high as £0.48 in April before settling back to trade in the mid-to-low £0.30’s for most of the first half of March.
But in the past four trading sessions TechFinancials has lost about 26% of its value, with its shares closing Thursday at £0.24 – its first close below the £0.27 IPO price.
So what has happened?
There has been no new ‘news’ out there about TechFinancials the past week, nor anything regarding its OptionFair binary brokerage subsidiary, which accounts for about half of TechFinancials’ overall business and financials.
After speaking with several London City insiders, it seems that TechFinancials’ problem is not company-specific, but rather a change in heart toward upstart online trading companies following the problems experienced by FCA-regulated Forex and CFD broker Plus500 Ltd (LON:PLUS).
Plus500 shares are down nearly 50% this week, as the company has been forced to freeze UK client accounts while it works out know-your-client and money-laundering rule related issues with the FCA.
There is no reason to believe that any Plus500-like issue might hit TechFinancials (nor any other online Forex, CFD or Binary broker for that matter). However stock market investors often do things in a pack mentality. And that mentality seems to be heading for the exits right now.