CSA Investor Alert: Unregistered binary option platforms target Canadians
The Canadian Securities Administrators (CSA) are warning investors to exercise caution when considering an investment in binary options. The CSA has become aware of multiple websites promoting binary options trading platforms that are soliciting Canadians. Many of these websites are trying to lure investors by making untrue and/or misleading statements about Canadian securities regulators’ oversight of binary options.
Binary options are essentially “bets” on how a particular underlying asset will perform in a limited amount of time. Despite listing Canadian contact information, many binary options trading platforms are based overseas purportedly in countries like Cyprus, Belize and the Seychelles, and the companies managing these platforms are often not registered to conduct business in Canada.
Offering investment services or products, whether online or in person, is a regulated activity. Investing with offshore companies operating outside of Canada can be risky and is a common red flag of investment fraud. Once offshore, it can be nearly impossible for an investor to recover their money.
Unregistered trading platforms currently soliciting Canadians:
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This is not an exhaustive list. The CSA encourages all investors to visit aretheyregistered.ca to check the registration of any person or company offering binary options to Canadians. Anyone who has invested with these or other offshore binary options trading platforms should contact their local securities regulator.
March is Fraud Prevention Month. Throughout the month, investors can follow tweets from @CSA_News for additional helpful tips and information on being a smart investor and fraud prevention.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
Source: British Columbia Securities Commission
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