Quebecois financial markets authority AMF has on Thursday issued a special warning regarding the recent rise of activity of binary options brokers that are targeting investors from the Canadian province, without having the necessary licenses.
The team of the regulator which deals with cyber surveillance has over the past week detected a steep increase in the activity of binary options brokers located overseas that try to attract Quebecois investors with unrealistic promises of high returns and easy gains. Many of these companies have even produced commercials specifically designed for the traders in Quebec.
Jean-François Fortin, head of AMF’s department for market control, stated that the majority of these unauthorized binary options brokers are located in Cyprus, the Virgin Islands and the United Kingdom.
Fortin added that such fraudulent companies target primarily traders who have already lost money due to investment over the course of the past month. The fraudsters easily obtain the personal data of such investors from previous companies they traded with. Additional problems are created by false promises about a binary options broker being licensed by a regulator, while, in fact, the company has no authorization at all.
Canada’s Quebec permits companies to offer binary options trading OTC as long as necessary licenses are obtained. To make sure that a company has the necessary regulatory permission, AMF advises investors to contact it before signing any contracts and investing money.
The regulator has updated its list of unauthorized binary options providers in Quebec. The most recent additions include:
To view the official text of the warning, click here.