Securities regulators in British Columbia are warning investors against dealing with online binary options trading platforms.
The B.C. Securities Commission (BCSC) issued an investor alert today, warning investors about Internet-based binary options trading platforms.
Returns on binary options are based on whether the underlying asset rises above or falls below a specific level. The commission says that these products are particularly risky because they are usually an “all or nothing” product.
The regulator notes that, while some binary options are listed on exchanges and traded by registered individuals, the BCSC says it “is concerned that a large portion of binary options are illegally traded through unregistered and unregulated online trading platforms.”
And, it notes that many of these platforms are located offshore. That said, it also specifically cautions investors about a platform, RBOptions, “an unregistered online trading platform claiming to operate out of Toronto.”
“The BCSC urges B.C. residents to use extreme caution if approached by this company,” it says.
In addition to RBOptions, the BCSC is also warning the public about 24options.com, GOoptions.com, and TradeRush.com.