Canada’s leading securities regulator, the CSA, is set to implement a total ban on the advertising and provision of binary options trading within the country, after releasing a proposal document entitled “Prohibition of Binary Options”.
The financial trading instrument has been offered to Canadian investors for several years, by both regulated and unregulated brokers, making use of pushy sales tactics to lure customers into their deceitful web.
“We are deeply concerned by the increasing number of investor losses and complaints resulting from binary options,” commented the Chair of the CSA together with CEO of the Canadian AMF, going on to say that the ban is “critical to our efforts to help stop binary options fraud.”
Numerous binary options firms have been employing bold marketing ploys to persuade local traders to deposit money with firms registered in offshore locations. Subsequently, traders find that they have not been able to reacquire these funds, resulting in major losses.
“The transaction takes place for the sole purpose of stealing money,” the CSA explained. Additionally, some investors have also suffered identity theft by providing their personal details to these firms.
Currently, none of the country’s financial watchdogs have authorised any firms to provide binary options trading to local investors. However, despite numerous warnings about industry scams, investors across the nation have fallen victim to fraudulent brokers.
Authorities encourage traders to check the national website http://www.aretheyregistered.ca/ in order to check whether any firm has the right to offer investment services within Canada’s borders before depositing any funds with them. In the case that funds have already been invested, traders should contact their provincial securities regulator immediately. Traders may also educate themselves on the risks associated with binary options trading through the website http://www.binaryoptionsfraud.ca/.
Leading EU watchdog, CySEC, has been implementing harsher measures for all its regulated binary brokers to comply with, in order to limit fraudulent practices rife in the industry; the regulator ordered trading platform reforms and implemented a strict bonus ban for all CIFs last year. The ISA has also participated in these efforts by prohibiting binary firms based in Israel from advertising to both local and foreign investors.