As More and more international financial regulators are issuing warnings against binary options brokers. The reason is simple to understand; these repetitive warnings are quite simply the consequence of the extent of fraud and scams to the binary options faced by individual traders. Every day, there are hundreds of people who engage in binary options trading with the purpose to benefit from the financial markets and these potential clients do not only interest honest brokers, but also scammers or companies with questionable practices. Thus, the BCSC financial regulator has recently warned against the MagnumOptions and Option.fm brokers since they do not seem to respect its financial regulations.
You probably know the CySEC (Cyprus financial regulator), which is a true reference in the European Union in terms of financial regulation, along with the AMF in France, the BaFin in Germany, the CNMV in Spain, the CONSOB in Italy or the FCA in the United Kingdom. Although it appears that the BCSC plays the same role in Canada, we are specifically referring to the “British Columbia Securities Commission”. Its role is to oversee the financial activity in Canada, including the activities of binary options brokers. When it comes to brokers, the BCSC reprimands actors that do not meet its financial rules through fines and warnings, with the aim to protect individual investors in its country.
The MagnumOptions binary options broker is the property of Hampshire Capital Ventures Ltd. The company is based in the United Kingdom and its address is located in “Cavell House Stannard Place, Crispons Rd, Norwich, NR3 1YE”. This broker allows its traders to speculate on the course of 250 financial markets. The minimum position to trade on its platform that is developed by Spot Option is $ 10 and the maximum return on investment reaches up to 81% per trade. The MagnumOptions broker likes to highlight its educational department and the training in binary options that it offers to its traders.
The OptionFM broker (Option Markets Financials) is a relatively new binary options broker; the Option.fm broker has barely existed for 2 years now since it emerged in March 2014, and it is based in Hong Kong. Meanwhile, this second broker offers trading signals to its traders, short-term binary options (30, 60 and 90 seconds) as well as longer term ones on a large number of markets.
Although these two brokers offer good services, they do not have the necessary licenses that would make them recognized and serious brokers. Hence, it is not worth the risk to open a trading account with them. Therefore, why not opt for an authorized binary options broker that offers similar services? 😉
In fact, the BCSC issued two different warnings against these brokers and their respective parent companies. The fact is MagnumOptions and Option.fm offer their services and their binary options platforms to Canadian traders. While doing so requires a license to demonstrate that the practices of the broker in question are fully consistent with local regulations and financial laws, MagnumOptions and Option.fm do not in any way have any licenses from the BCSC and are thus binary options brokers to avoid. As a Canadian trader, if you choose one of these two brokers to practice trading, please note that no financial authority can assist you if you encounter a problem withdrawing your money.
Unlike unauthorized binary options brokers, it is best to choose a regulated binary options broker with whom you can practice trading. Trading through a licensed and recognized binary options broker makes it possible to speculate on the price of financial markets while keeping your funds safe, contrary to unauthorized brokers that can, among other things, do whatever they want with the traders’ money (such as not repaying the money). Choosing a binary options broker that has the required authorizations to enable it to legally offer trading to individuals in a given country is absolutely necessary and it is one of the criteria that you need to consider when choosing a broker.
Please also note that when you open a binary options account with a partner on our website, you can enjoy exceptional benefits. For example, while the 24Option broker usually offers its traders a bonus on deposit of about 20%, when you join this broker through our website and you open a 24Option account by clicking on one of the links on our website, you will be able to enjoy a 100% negotiated bonus on deposit. Accordingly, when you deposit $ 250, you will notice that your trading account is credited in the amount of $ 500. In addition to the bonus on deposit that we have negotiated with 24Option, you will also be eligible for the BonusBinaryOptions.net guarantee.