The warnings keep coming but it is unclear if they are really doing anything. As noted in previous reports the French regulator AMF has stated time and time again that fraudulent unregulated brokers will change their names and URLs just as fast as they can in the race to outrun the law. In this update we hear from a few well known names, as well as a few new members in the fight against unregulated binary options trading.
Canada Is Still #1
Canada is still #1 when it comes to warning its citizens about binary options financial scams. Like many countries around the world binary trading is legal in Canada, so long as the brokers are registered, regulated and in compliance with the terms of operation as set down by the Canadian government and the individual province within which the broker wants to operate. One of the biggest hurdles to entry, and an example of how fractured binary options regulation is, is that brokers in Canada will have to comply with national as well local regulations in each of the 10 provincial and 3 territorial jurisdictions.
This month we have warnings from 3 of them; British Columbia’s BCSC, Quebec’s AMF and Manitoba’s MSC. Topping the list are 13 new additions to the AMF watch list, many of them are obvious frauds. The concern for traders and the issue facing international regulators and brokers alike is that a broker regulated in one jurisdiction, such as FMTrader.com, is not in another and getting warnings as happened here. The BCSC and MSC each warned against one broker, both off-shore and unregulated; 72Option and B4Binary.
European Regulators Are Still At It, Too
Italy’s CONSOB is well know in EU circles as one of the first to truly tackle the issue of CySEC regulation and how it works in the EU with the financial passport and MiFID. Their response, warn against unregulated brokers and require regulated ones to also register with them. This month they’ve added 5 new names to their list and they, like regulators everywhere, have included Isle Of Mann regulated and trusted broker MarketsWorld in their statement. The question now is if Italy will follow in the footsteps of other EU nations in their quest to establish a “hostile” environment in which the brokers must operate.
Spain is another name that is not unfamiliar to those following the progress of EU regulation. This month the Spanish regulator CNMV added Netmark Consultores En Soluciones Y Innovacion, operating as Capital Forex and other brands, because it is skirting the regulatory framework of the EU and soliciting customers through fraudulent means in jurisdictions around the world. A new name on the list of regulators warning citizens is the Bulgarian FSC. This watchdog has added a number of names to its list and the unifying factor is that none are regulated in Bulgaria.
The Bottom Line
The bottom line remains the same. There are scam, fraudulent and unregulated brokers out there, there is a growing amount of regulation in the world, there is really no reason to trade with a shady broker because there are so many good choices and in the end, it comes down to your own due diligence. Be smart, stay sharp, choose wisely, don’t get scammed and have fun trading.