The British Columbia Securities Commission (BCSC), one of Canada’s thirteen provincial financial regulators, has added a further two binary options brokerages to its Investor Caution List, once again raising the flag on an industry that continues to incur the wrath of the world’s regulators.
The Canadian watchdog last warned investors against binary options firms Prime Brokerz and Crown Managers in October for soliciting their services to the BC public while unauthorised to do so. This time another two brokers BSDOption and BinaryOnline have come under the regulator’s scrutiny.
BSDOption is operated by Lybss Ltd and owned by YDBM Ltd, a binary options brokerage based in Liverpool, England. The firm operates via url: www.bsdoption.com, and offers trading on 200 tradable assets, including currencies, commodities, stocks and indices.
The BCSC recently became aware of BSDOption when a local resident was able to open a trading account with the brokerage when it is not registered to trade in, or advise on, securities or exchange contracts in BC.
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On further investigation into this company’s website, Finance Magnates did not find any evidence of any other regulation, notably the FCA which oversees UK financial entities.
The second brokerage to be flagged by the BCSC is BinaryOnline which is owned and operated by Zola Ltd. Operating an online platform via www.binaryonline.com, BinaryOnline claims to be a binary options trading brokerage based in Sofia, Bulgaria – another apparently unregulated broker that had also come under the BCSC’s watchful eye after it became aware, as with BSDOption, that a BC resident was able to open a trading account with the company.
The BCSC is the independent provincial government agency responsible for regulating capital markets in British Columbia. Its Investor Caution List contains individuals and companies that appear to be engaging in activities that may pose a risk to investors.
As with all brokers included on the list that are not registered to trade in and advise on securities or exchange contracts in BC, the Canadian watchdog has warned that trading with these brokers may present a risk to investors and has therefore urged the public to be highly cautious when dealing with them.