Illegal Binary Options Trading Called Online Gambling

Published Thursday, March 24, 2016 -
Illegal Binary Options Trading Called Online Gambling

Betting at an online casino is straight forward with slots and cards but gambling on the stock market is a completely different kettle of fish. A recent warning from the Canadian Securities Administrators about the proliferation of web locations promoting offshore binary options trading platforms has been published. The CSA makes it very clear that these sites that are targeting Canadians are not registered or authorized to market or sell binary options in Canada.

Binary options are like “bets” on how an asset, currency, or stock, will perform in a limited amount of time. These transactions are “all or nothing” wagers, similar to gambling in many respects. The problem is that even when investors see some sort of virtual gain, they cannot access these profits as they don’t really exist.

Explaining the consequences of going to these offshore trading platforms Chair of the CSA and President and CEO of the Autorité des marchés financiers, Louis Morisset,  commented, “Canadians are exposing themselves to the high risk of identity theft and fraud when signing up for these platforms that often request their credit card information,” Morisset continued to add, “The CSA warns investors that if they deal with these platforms, they risk the threat of thousands of dollars in unauthorized withdrawals on their credit cards and of being stuck with high-interest payments for a non-existent investment.”

Businesses illegally offering gains from binary options are operating all over the planet. The CSA is working with other regulators to share best practices in order to counter the proliferation of the illegal activities. It was suggested by the CSA there are a number of steps that the investor should take before jumping in to the binary options pool. For example, not making hasty decisions and taking some time to research the opportunity and review it with an independent third party and asking for written information about the investment to be sent to you among other precautions.  


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