The regulator of British Columbia province – the British Columbia Securities Commission (BCSC) has added another binary options company to their Investor Caution List. The list comprises of companies that offer financial services, mostly online, in Canada, even though they do not have a proper license to do so. This time they have added a binary options broker Redwood Options.
The broker operates through the website redwoodoptions.com and it claims to be based in Norwich, England. However, the true location is probably somewhere else, while the England location is a simple company that gets set up by other companies who offer such services in the UK.
As many of binary options brokers, it claims it is a leading broker in the industry and offers many assets to trade. However, with binary options, traders do not trade the assets, but the assets’ prices act as underlying assets for binary options which are usually formed as a two way bet. The broker’s website does not name any regulator or authority where their business is licensed, leading to conclusion it is part of the unregulated binary options industry.
The BCSC, which is responsible for regulating financial services in the British Columbia, suspects Redwood Options is offering its services in the province. Due to the fact that the binary options broker does not possess license in Canada, the regulators calls for caution. Customers are recommended only to trade with regulated companies.