BCSC and AMF caution against online binary options trading platforms
BCSC staff placed 24options.com, GOoptions.com, and TradeRush.com on its Investment Caution List (ICL) on Aug. 7, 2013. The websites offer online trading platforms for binary options, a type of investment product that trade in currency markets.
The payout for this type of option depends on whether the underlying asset (such as a stock, a commodity, a currency pairing, etc.) increases or decreases in value. Options are considered securities under British Columbia’s securities legislation.
The three websites are not registered to trade in, or advise on, securities or exchange contracts in British Columbia.
On Aug. 8, 2013, The Autorité des marchés financiers (AMF) also cautioned investors about an online binary options trading platform, Banc de Binary.
This firm, headquartered in Cyprus, was placed on the Ontario Securities Commission’s (OSC) Investor Warnings List in October 2012 and the U.S. Commodity Futures Trading Commission filed a civil complaint against Banc de Binary in June 2013, charging it with violating U.S. law by soliciting U.S. citizens and operating as an unregistered Futures Commission Merchant (FCM). BCSC staff also added Banc de Binary to ICL on July 29.
We urge British Columbians to exercise caution when dealing with firms that are not registered to trade or advise in B.C. If you are approached by a person or company that is not registered in B.C. to trade in, or advise on, securities and exchange contracts, or if you need help understanding the results of the National Registration Search tool, please contact us at 1-800-373-6393 or e-mail [email protected].
Al-Tar Energy Corp.
On July 31, the OSC issued an Investor Alert regarding Al-Tar Energy Corp. announcing a civil forfeiture proceeding in Ontario that resulted in a $199,073 deposit into a special purpose account. More information how to make a claim, and who is eligible to make a claim, is available on the BCSC’S website.