Canadian provincial regulator, the Manitoba Securities Commission (MSC), has issued an alert, warning the public against investing with unregistered binary options broker TorOption, according to a regulatory statement.
The brokerage, which operates online at www.toroption.com and is owned and operated by Smart Choice Zone LP provides investors and traders with the ability to trade stocks, currency pairs, commodities and indices on the exotic options market.
TorOption is, however, not registered to sell securities in Manitoba, or anywhere else in Canada, and has therefore failed to comply with provincial securities laws.
In its capacity as one of Canada’s provincial regulators, MSC seeks to protect investors while promoting fair and efficient capital markets throughout the province. The regulator website provides information, tools and resources for investors, including investor warnings about individuals and companies that appear to be engaging in unauthorized activities.
In response to escalating binary options scams, provincial and territorial securities commissions across Canada have formed a task force and launched a new dedicated website to crack down on its aggressive marketing tactics, cloning and false claims of regulation.
In addition to the Binary Options Task Force, the Canadian Securities Administrators (CSA), comprised of the country’s thirteen key financial market regulators across their respective provinces, launched a new resource site, www.BinaryOptionsFraud.ca. The move is part of a campaign to educate Canadians about the binary options scams.
The initiative against binary options activities comes after the Canadian watchdogs received more than 800 reports and inquiries from investors in 2016 alone, saying the schemes have the become nation’s most widespread securities fraud targeting the general public, namely to retail investors.