Canadian regulatory body issues warning to their constituents over binary trading platforms
The Ontario Securities Commission (OSC) an independent Crown corporation that is responsible for regulating the capital markets in Ontario, Canada has issued a warning to Canadian investors over parent company of 24option, Rodeler Limited, who operates their HQ in Cyprus under regulation of CySEC in the EU. The OSC’s statutory mandate is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets.
Officially the OSC states: “Rodeler Limited doing business as 24option.com, 24fx.com, zoneoptions.com, grandoption.com and binaryoption-affiliate.com is not registered to engage in the business of (i) trading in securities or (ii) advising anyone with respect to investing in, buying or selling securities.” Formally, they are not allowed to solicit clients from Ontario or anywhere in Canada. We don’t know if they were actively being solicited or Canadian clients are signing up thru back door channels.
Canada is known as a conservative business culture with very stable capital markets. They have not embraced retail FX and binary trading as much as other jurisdictions as they are more equity and stock oriented. Further, Canada has a much more fragmented regulatory structure with each province regulating capital markets a bit differently. This is not the first time a Canadian regulator has issued a warning against binary option platforms, back in January of 2014, British Colombia Securities Commission (BCSC) issued a warning to a number of platforms including again, Rodeler Limited.