Unregulated Binary Options Brokers Warned by Watchdogs
A series of warnings from a host of regulatory and watchdog agencies seeks to expose unregulated off shore binary options brokers. These warnings, from a vegetable soup of international agencies, are putting non compliant brokers in the spot light in an effort to help educate traders. There seem to be goals in mind at this time. The first is to keep unregulated brokers from preying on citizens of the respective countries. The second is to expose those brokers falsely claiming to based or authorized in those same countries. One thing to keep in mind is that a broker unregulated in one arena may in fact be regulated in another. The good news is that the efforts of these agencies is helping the industry to mature as it exposes the unscrupulous businesses seeking to profit from unwitting binary options traders. The take away, it is still important for binary traders to stay abreast of the industry, local laws which brokers are regulated in your area.
Canadian Grizzlies Bite Tradologic
Two Canadian provinces and no less than 4 EU economic arena countries have issued warnings in the past 2 months. In Canada British Columbia and Saskatchewan authorities have warned against two broker specifically. Tradelogic.com and Tradequicker.com have both been listed in warning statements in regards to their lack of registration and authorization to provide financial services in Canada or those provinces. Traderush is a well known and respected, unregulated, off shore broker at this time whereas Tradequicker.com is a new broker who has not only been the subject of a previous warning from the British Columbia BCSC is also the subject of a warning from other agencies such as France’s AMF.
French Bulldogs List 79(!) Brokers
The French AMF, Authorite Des Marches Financier, has issued a list with 79 binary options brokers on it. One of note is Tradequicker.com. The AMF has warned residents that the broker is involved in aggressive advertising tactics that must be ignored and that it is unauthorized to service financial transactions in France. The broker, and all others on the list, run the risk of criminal sanctions if they do not comply with French binary regulation. In Cyprus regulators at CySEC are running into the problem of brokers falsely claiming to be regulated in that country. CySEC led the way in binary options and CySEC regulation is a feather in the cap of any broker. CallandPut.com is the latest broker to be put on the Cypriot warning list.
Belgium and Luxembourg Make a Move on Unregulated Brokers
Belgian officials of the FSMA, Financial Services and Markets Authority, are fighting unregulated brokers as well. They have issued a list of 6 brokers not regulated, registered or authorized to provide binary or any other financial service in the country. This is on top of the list already in place. Citizens and residents are urged not to respond to the advertising or make any deposits with brokers on the list. Officials at Luxembourg’s Commision de Surveillance du Sector Financier have issued similar warnings about brokers Royal de Bank and FutureMarket. These brokers allege to have offices in the country as well as in New York and Bahrain in order to service French speaking clients. They are not registered or allowed to sell financial products in Luxembourg.
*Special Thanks to ForexMagnates.com for this regulatory update.