For a few weeks now, the authority of financial services and markets, the FSMA, in charge of overseeing the financial industry and the companies offering financial services in the Belgian territory, had not made news since it has not issued any warning to traders and other investors against a binary options broker. The latest enforcement action of the Belgian regulator consisted of a warning against the EZ Trader broker in March. Only a few months after the regulator warned traders against the brokers Banq of Broker, Ikkotrader and AJ Browder Capital, the Belgian financial regulator is now warning traders against the BFXoption broker.
In the warning of the FSMA dated April 9, 2014, the Belgian authorities stated that the BFXoption broker offering binary options trading to individuals, is not a company authorized to provide such investment services in the Belgian territory. Hence, the regulator warns traders against doing business with this company and using the services that it offers. The FSMA also indicates in its report that binary options are highly speculative trading instruments subject to significant risks of financial losses, therefore traders must deal in binary options with caution and with a strategy such as money management.
The warning of the FSMA regulator is largely justified; if we go to the BFXoption website, we can see at first glance that the trading platform of the broker seems of good enough quality; it includes a wide range of trading instruments with significant yields and was developed by Tradologic, a company that has also developed the platform of the OptionBit broker, regulated by the CySEC. However, BFXoption does not provide any information regarding the company that owns the broker, its location (physical address) nor its license from financial regulators, which raises questions about the credibility of the broker and calls its credibility into question.
This is not the first warning issued against the BFXoption broker; other European financial regulators have also published updates to warn against this broker. For example in February 2014, when the AMF published its black list against 75 binary options brokers to avoid, the BFXoption name was included therein. The CONSOB, which is the Italian financial regulator, has also undertaken preventive steps against BFXoption since the practices of this broker do not comply with local financial regulations and expose investors to significant financial risks.
Recently, we have seen a lot of warnings issued by various financial regulators within the trading industry. In addition to the present warning, there is also the OSC’s warning against EZ Trader, the CySEC’s warning against OptionSmarter and the OSC’s warning against RBOptions. The efforts of various international financial regulators reflect the willingness to consider binary options as a real financial product and not a simple gambling. It also aims at keeping traders informed of news regarding binary options brokers.
It is particularly recommended to opt for a regulated binary options broker. Brokers in this category are companies that have received various authorizations, licenses and permits from European financial regulators such as the European regulator CySEC, the French regulator AMF, the Spanish regulator CNMV, the Italian regulator CONSOB or the UK regulator FCA. The regulators’ approval and issuance of their licenses shows among other things that the activities of these brokers are recognized as being in full compliance with the financial regulations of the jurisdiction in question and that traders’ funds are separated from the company’s money, in most cases in segregated bank accounts, hence allowing anyone to recover his/her funds regardless of the financial strength of the broker. A regulated broker is synonymous with quality and trust in relation to non-regulated binary options brokers that have no authorization such as the BFXoption broker referred to in this article.
As readers of this website, traders can enjoy additional benefits to registering with a binary options broker; the first of these advantages is the allocation of a negotiated bonus on deposit. Regulated by 12 financial regulatory agencies in Europe, the TopOption binary options broker is currently the most regulated broker that normally provides a 0% bonus. However, thanks to the special relationship that we enjoy with the team of this broker, we have been able to negotiate an exceptional 100% bonus on deposit that makes it possible to directly double one’s deposit upon opening a TopOption account through our website. Another advantage we are referring to is the BonusBinaryOptions.net guarantee, which each trader can benefit from upon opening a binary options account through a link on our website. Amongst other things, this guarantee allows the trader to receive the assistance of our team in case of a conflict encountered with a broker and help find a quick solution to the problem in question.