Australia’s leading national securities regulator, ASIC, recently added 5 binary options brokers to its current blacklist after investigating the possibility that these firms might be operating scams since they are unauthorized to offer their services to Australian traders.
The brokers in question are A.I.M Corporation Limited, 365BinaryOption, Pearson Investments, CFD Stocks, and Libor Capital. Additionally, these companies were also revealed to be employing aggressive sales tactics such as cold calling and engaging in unsolicited correspondence with the aims of luring local investors to use their services without proper AFS licensing, which all brokers must obtain from ASIC.
The regulator appears to be participating in the global ongoing battle against the binary industry which has been underway for almost a year. Thousands of traders across the world have succumbed to brokers’ deceptive sales tactics only to become the victims of fraud, resulting in a complete loss of their investments.
Moreover, a recent report published by FinanceMagnates, indicates that traders from the Antipodes, particularly New Zealand and Australia, have been taking the lead in terms of deposits made to binary brokers in March of this year.
Despite the country’s increasingly strict regulation on binary firms, it continues to allow some brokers to solicit investors in specific circumstances and provided all legal licensing is in place. The watchdog also recently issued warnings to Australian citizens to be on the alert for “online trading scams” they could receive as emails, especially during the Christmas and tax periods.
According to ASIC’s chairman, Greg Medcraft, the regulator plans to focus its efforts on Forex and CFD brokers too, noting how these financial instruments “were traditionally targeted at inappropriate investors who were less likely to profit from dealing in the financial product.”