Warning keep coming as Binary Options Regulators step up
Authorities are unrelenting in their bid to keep folks in the financial market abreast of the current happenings. The warnings keep coming but are people taking note of it? As previously reported, the French regulator AMF has stated repeatedly that fraudulent unregulated brokers will change their company names and URLs just as fast as they can in the bid to outrun the law. This article will attempt to shine the light on the activities of Binary Options Regulators in their fight against unregulated binary options trading.
Canada Still on Top
Canada is well ahead of the rest when it comes to warning its citizens about fraudulent binary options brokerage platforms. Like most countries in the world, binary options trading is a legitimate business in Canada, as long as the brokers are regulated, registered and in compliance with the rules of operation as stipulated by the Canadian government and individual province within which the brokerage firm might want to operate. One of the biggest obstacle to entry, and an example of how fragmented binary options regulation is, brokers in Canada will have to comply with local and national regulations in each of the 10 provincial and 3 territorial jurisdictions.
Just a couple of weeks ago we had warnings from 3 of them: Quebec’s AMF, British Columbia’s BCSC and Manitoba’s MSC. Interestingly, there are 13 new additions to the AMF watch list; most of them are obvious scams. The concern here for traders and the challenges facing international regulators and brokers alike is that brokerage firm regulated in one jurisdiction, may not be registered in another and therefore getting warnings. The practice of registering and being regulated in multiple jurisdictions has created a complex challenge for both regulators and brokers in Canada.
European Union Regulators are still at it
Italy’s CONSOB is very popular in EU circles as one of the first regulatory body to truly tackle the issue of CySEC regulation and how it operates in the EU with the financial passport and MiFID. They have issued periodic warnings against unregulated brokers and require regulated ones to also register with them. Early last month, they added 5 new names to their list and just like regulators everywhere, they have included Isle Of Mann regulated broker MarketsWorld in their statement. The question in everyone’s mind now is if Italy will follow the example of other EU nation in their quest to establish a ‘hostile’ environment in which brokerage firms must operate.
Spain is another country that is not unfamiliar to those keenly following the progress of European Union regulation. Within last month, Spanish regulator CNMV included Netmark Consultores En Soluciones Y Innovacion, operating mostly as Capital Forex and other brands, because of the fact that it is circumventing the regulatory framework of the European Union and soliciting for customers through questionable means in jurisdictions around the world. A new entry on the list of Binary Options regulators warning citizens is the Bulgarian FSC. This financial watchdog has added a few more names to its list and the unifying factor is that none of them is currently registered and regulated in Bulgaria.
The conclusion remains the same. There are lots of fraudulent, scam and unregulated brokers out there and there are growing amount of regulation and awareness in the world. There is absolutely no reason to trade with a shady broker because there are lots of good choices out there. In the end, it will come down to your own due diligence. Be smart and choice wisely when you want to trade.