In the News: Canada To Ban Short Term Binary Options

The allegorical noose is tightening around the necks of the scammers as more and more financial regulators around the globe are issuing warnings against them. This is a round-up of the most important warnings released during the recent period:


Canada to Ban Binary Options Under 30 Days

Canadian regulator Nova Scotia Securities Commission (NSSC) has announced a new law that makes it illegal to advertise, sell and even trade binary options with an expiry time of less than 30 days. Bye, bye 60 sec! Also, the regulator has issued a warning against Ashford Investments, mentioning that the entity is not authorized to offer securities in Nova Scotia. The Commission also urges residents to use extreme caution when dealing with unregistered firms, saying that it is illegal for firms to solicit investments without the proper authorization. Sources: NSSC Rule 91 – 102, Leaprate.

Italy’s Commissione Nazionale Per Le Società E La Borsa (CONSOB) has updated its warning list and added binary options broker OptionInt, which is operated by IBA Group Ltd. and connected to Tradelux Group Ltd. In addition, the Italian watchdog advises investors to check its registers before investing any money with a broker, especially if that broker is using aggressive marketing tactics. Source: “Consob Informa” no. 36/2017 – 9 October 2017


Warnings All Over the Place

The Malta Financial Services Authority (MFSA) has warned investors to stay away from three entities: Smart Choice Zone LLP, Capital Markets Banc and Marketier Holding Limited. The former company operates the brokerage BinaryUno – read a full review here. The other two companies are operating websites that offer trading in stocks, CFDs and FX. Source: MFSA Warnings

The Financial Commission, an external dispute resolution (EDR) organization, operated by FinaCom PLC warned on the 3rd of October 2017 that binary broker CTOptions is claiming to be regulated by the Financial Commission but instead they are associated with “a pseudo-clone entity mimicking Financial Commission in an attempt to clone Financial Commission’s brand and masquerading with purported services.” That’s a pretty intricate scheme and the Financial Commission (the real one) has taken measures to notify parties that the perpetrator is a pseudo clone. Source: Financial Commission Warning

The Financial Services Board (FSB) has issued a warning against BCI Business Consultancy International (Pty) Ltd and Jacques Magliolo. According to the FSB, Magliolo and BCI advised clients to invest in Oil options but then the money was used for other purposes. Magliolo is the author of several books on investing (The Millionaire Portfolio, Become Your Own Stockbroker, Richer than Buffett) but he and BCI are not authorised to offer investment advice or to render financial services in derivatives. Source: FSB Press Release

The FSB also warned against investing with Chemmi Holdings trading as Binary Tilt. According to the information the FSB holds, a South African citizen invested in binary options with Binary Tilt and couldn’t get his funds paid back. Source: FSB Press Release

The Federal Antimonopoly Service of the Russian Federation (FAS) launched a case against Yandex and Process-A due to alleged violations of the Russian advertising law. The complaint was originally filled by the Russian Association of Forex-dealers over illegal advertising. The brokerage that allegedly used the illegal ads is Olymp Trade, a brand of Smartex International Ltd. Source: Finance Feeds

On the brighter side, binary options broker OptionRally has regained its CySEC license after a 3-month suspension that followed a series of fines for non-compliance. According to the Cypriot regulator, OptionRally has now complied with regulatory guidelines and as a result, CySEC has decided to withdraw the suspension. Sources: CySEC Board Decision, Finance Magnates


Wrapping It Up

All these warnings show that regulators are putting their foot in the door and are slowly making binary options a safer place. Also, people are finally starting to understand that binary options are not an easy way to get rich quick and that some expertise is needed if you don’t want to lose your shorts. Keep up with the news and don’t invest with unregulated brokerages or with companies that have a bad reputation.