The British Columbia Securities Commission (BCSC), one of Canada’s thirteen provincial financial regulators, today added a further two binary options brokerages to its Investor Caution List, once again raising the flag on an industry that has frequently come up against the regulators in recent times.
Last month, the BCSC warned investors against binary options firm, Binary Uno, which the regulator honed in on for unlawfully soliciting its offerings to the British Columbia (BC) public. This time around, PrimeBrokerz and Crown Managers are under scrutiny.
The BCSC became aware of PrimeBrokerz after a BC resident was able to open a trading account with the firm which is not registered to trade in, or advise on, securities or exchange contracts in BC.
According to the BCSC, PrimeBrokerz which operates online via www.primebrokerz.com and offers binary options trading on a variety of assets, claims to be based in London, England, but a glance at the firm’s website shows that the website is owned by ELLA Solutions, 5th floor, Koenigsallee 2b, Dusseldorf, 40212, Nordrhein Westfalen, Germany.
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With no clear sign of regulation by any jurisdiction and the apparent lack of transparency, concerns about the authenticity of the firm have been thrust into the spotlight.
Transparency is also the operative word as far as Crown Managers is concerned. This entity, according to the BCSC, claims to have offices in China, Norway, UK and US, and offers an online binary options trading platform. However, there is little to be revealed on the website in terms of contact details which could indicate a scam.
Once again, the firm came to the attention of the BCSC after a BC resident was solicited to invest with them, and as in the case of PrimeBrokerz, Crown Managers is not registered to trade in, or advise on, securities or exchange contracts in BC.
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.