British Columbia Securities Commission (BCSC), one of the thirteen Canadian provincial financial regulators, has updated its warning list to include binary options broker, Magnum Options. The latest addition follows the inclusion of another binary options broker, Interactive Option, which was added to its list in April this year for soliciting to British Columbia (BC) residents.
The BC based watchdog recently became aware that a BC resident was able to open an account with Magnum Options with the intention of attracting them to invest in binary options. Binary options brokers are not licensed to do business in Canada, however, it has not stopped some of the offshore companies soliciting potential traders with their services.
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Magnum Options is operated by Hampshire Capital Ventures Ltd., which claims to have an office in Norwich, England. Besides not having a licence to conduct business in BC, Finance Magnates has not found any evidence to confirm that the broker is regulated by any other financial jurisdiction, leaving potential investors worldwide open to risk.
The BCSC is the independent provincial government agency responsible for regulating capital markets in British Columbia. Its warning list contains individuals and companies that appear to be engaging in activities that may pose a risk to investors. The BSCS confirms that Magnum Options is not registered to trade in, or advise on, securities or exchange contracts in BC and urges investors to use caution when dealing with this firm.