Canadian financial regulator British Columbia Securities Commission (BCSC) has issued a warning against online binary options platform Binex Markets and advisory firms Vision Financial Partners and Vision Trading Advisors for providing financial services in the district without being registered, according to a notice published on the watchdog’s website on Friday.
The regulator said it has been contacted by a British Columbia resident who has, on his part, been contacted by Vision Trading Advisors with a request for opening an account with Binex Markets. Investors were given instructions to send their funds to a bank account of Vision Financial Partners.
The above-mentioned companies offer their services via the websites www.binexmarkets.com and www.vision-trading-advisors.com.
Under the British Columbia regulations, trading in, or advising on, securities or exchange contracts services in British Columbia. Since the three companies are not registered in the district, they have been added to the BCSC’s Investment Caution List.
The BCSC warns local citizens to be cautious when chosing financial intermediaries, especially if they are not registered to trade or advise in British Columbia.
Binex Markets says on its website it is based in the UK, while Vision Trading Advisors says it is based in Florida.
Binex Markets is the trading name of BNX Systems and presents itself as a web-based trading platform for binary options on forex, stocks, commodities, and indices. It offers different trading types, such as One Touch, 60 Seconds, and long-term, or ladder. It promises a profit of up to 75%.
Vision Trading Advisors, on the other hand, is an advisor of companies of the over-the-counter (OTC) forex market. Its website does not clearly state what its business consists of.
The forex broker market in Canada is regulated by provincial regulatory bodies and the forex trading legislation can vary in the different provinces.The BCSC is in charge of the regulation of the capital markets in the British Columbia province. It consists of eight commissioners and a chairman, appointed by the governor of the province. The regulator reviews companies’ registration applications, informs the public of possible fraudulent entities, protects investors’ rights, investigates consumer claims and collects funds from fraudulent companies.
Unregistered and unauthorized investment companies that target British Columbia residents are included in an Investment Caution List, which is accessible to the public. Currently the list consists of 148 entities. The BCSC includes in it foreign brokers not registered in British Columbia which have targeted local citizens, as well as entities that wrongfully associate themselves with genuine companies authorized in the district. The regulator only includes entities in this list if it has confirmed they are engaging in these type of activities.
In binary options, traders bet on whether the price of a certain instrument would go upwards of downwards within a pre-determined time frame. Once that time frame is over, the option is deemed expired and the bet is settled. The binary options segment is among the fastest growing in the finance industry, mainly because it is simpler, easier, and more convenient than traditional trading.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.