Do not invest more money than you can afford to lose.
Canada’s financial regulator British Columbia Securities Commission (BCSC) added to its Investment caution list the binary options brokers: Option Orbit, LBinary, ZenithOptions and the equity firm Tain Capital. The main reason for the companies to be put on the caution list, is that neither of them is registered to to trade in securities, advise or exchange contracts, as required by law.
OptionOrbit.com claims to be the leading binary options platform and promises safe and convenient trading experience. It offers trading in forex, stocks, indices and commodities with up to 88% profit, claiming partnership with the feed provider Reuters, but no information on regulation and registration has been found by the SMN Weekly staff. Other details about the company, including an address, could not be found either. It offers telephone services in Sydney, Madrid and New York, but the online 24/7 support center is offline.
Lbinary.com promises profit of up to 85% and also uses the Reuters feed. It offers trade in currencies, indices, stocks and commodities. Like OptionOrbit, information on regulation and registration was not found. An interesting touch is the mission statement of the company, signed by one Joseph Goldenberg, Chief Trading Officer. In it he thanks those who chose Lbinary, stating the company believes in “synergy and deliver an innovative environment where investors can leverage their success to reach their financial goals.” It is not the first time Lbinary has been put on a warning list. In January this year Canada’s Ontario Securities Commission (OSC) has also put LBinary on its warning list for not being authorized to provide its services in Ontario. As early as 2014 Cyprus’ regulator Cyprus Securities & Exchange Commission (CySEC) warned the broker was not regulated in the country.
One of ZenithOptions‘ websites – the .com one, is unavailable. The other one .net, however, is active and offers profit of up to 81% in less than one hour. It offers trade in forex, stocks, commodities and “indeces” (sic). Customers can open VIP, bronze, silver, gold or platinum accounts. According to its website, ZenithOptions is a trade name of Edwards Limited, registered at 103 Sham Peng Tong Plaza, Victoria, Mahe, Seychelles. An SMN weekly check showed that no such company has been registered with the Seychelles’ financial regulator FSA.
On its website Tain Capital states it is a boutique private equity firm, offering investment related services. The company address is 16th floor, Park Place, 666 Burrard street, Vancouver, British Cloumbia, thus placing it in the jurisdiction of BCSC. The province’s financial services watchdog, however, notes that the company is not regulated by it.
In conclusion the BCSC warned the British Columbia residents to be cautious when dealing with companies that are not registered to trade or advise in the Canadian province, or that are offering unqualified securities in or from BC.