Japan’s FSA warns against unauthorized OptionRally, two other binary options brokers

Japan’s FSA warns against unauthorized OptionRally, two other binary options brokers

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FSA Japan

Japan’s financial watchdog, the Financial Services Agency (FSA), included on Wednesday into its alert list binary options brokers LFG Investment, trading as OptionRally, and WorldOptionner Management Office and BizOption Management Office, trading as Bizoption and Worldoption, respectively. The three companies have been providing financial services in the country without being registered and authorized.

OptionRally is based in Hong Kong, while the location of the other two binary options brokers is not known, the FSA said. In Japan, companies that provide investment services need to be registered and authorized by the local regulatory bodies, even if they are licensed in a foreign country.

OptionRallyOptionRally operates through at least two branches, one of which is based in Hong Kong and the other one, named OptionRally Financial Services, is located in Cyprus. The FSA issued a warning in September 2014 against the Cyprus unit, as well, since it also did business in Japan without authorization.

Other financial regulators, including Canada’s Ontario Securities Commission (OSC), have also warned against OptionRally and its two branches. Only at the time the OSC said LFG Investmen was based in the UK.

The broker’s Cypriot branch is licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC), which allows it to operate in all EU countries. It offers its services via the website www.OptionRally.eu. The company operates an online binary options trading platform under the OptionRally brand.

Our research showed the website of Bizoption, www.biz-option.com, is no longer available.

Worldoptions is registered and regulated by the relevant authorities in the Seychelles, according to data from the broker’s website www.world-option.com.

Binary options trading is a type of trading where investors guess whether the price of a certain instrument would go upwards or downwards within a specified time frame. Once the time is up, the option is deemed expired and the bet is settled. Depending on the bet, a trader either collects a profit, or loses funds. This type of trading is among the fastest growing investment segment. It is easy, fast, and does not require deep knowledge, which makes it perfect for novice traders.

We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.

Source: FSA

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