The Japanese Financial Services Authority (JFSA) has warned traders about a number of binary options and forex brokers that are illegally providing financial services to Japanese citizens. Amongst the operators of binary options brokers are GFB Options, Monkey Trade, Fox Forex and FX Best.
The above mentioned entities with registrations ranging from New Zealand to the United Kingdom have failed to adhere to local rules and regulations which require a JFSA license for the provision of financial services to clients from Japan.
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While a number of provincial regulators have been frequently issuing warnings against unregulated providers, the JFSA is updating its list on a monthly basis. Customers which are trading with entities that are not licensed by the Japanese watchdog will have a hard time getting access to adequate protection from fraudulent companies that are a frequent occurrence in the binary options and forex world.
Looking at the binary options offerings in detail, there is a big difference between the unregulated offerings and the ones that are licensed to operate in Japan. The brokers are required to provide bid and ask pricing on the binary options and permit their clients to close open positions. In addition the offering is laddered around the price and clients can not purchase a typical call or put binary option at the current market price.
The companies which the Japanese authorities are warning against are GFB Capital, Monkey Trade Carlson, BM Group Asia, and Fox International. They are the legal entities behind the brands which the JFSA has listed on its website and exposed in December.