CONSOB, Italy’s financial watchdog, has published a warning that the companies Titan Trade Capital Limited, Dom Technology Services Ltd and Titan Trade Solutions Ltd. are not authorized to provide investment services in Italy by any means, including trough the website www.titantrade.com.
According to its website, Titan Trade is a binary options broker with a business address in London, but obviously with no regulation. A quick check in England’s company registry reveals that Dom Technology Services and Titan Trade Solutions – the company, which serves as a payment service provider of the broker, have the same business address. The former was incorporated in March 2015 and the latter – in November 2015.
At the same time, in March 2015, one of Canada’s financial services regulators – the Ontario Securities Commission has issued a warning against Titan Trade Capital Limited, doing business as www.titantrade.com, that it is not registered in the province to engage in trading in securities and providing investment advice.
Binary options are a type of financial instrument similar to gambling. The “investor” bets on random events such as whether the price of a financial instrument will go up or down or whether it will reach a certain price within a very short period of time. It is an all or nothing proposition and the “investor” could lose a large sum very fast.
Binary options are usually offered in the portfolio of forex brokers, but there are companies only offer trading in binary options. Some of them are properly registered and regulated, but many are rather shady affairs operating out of offshore zones, soliciting unsuspecting individuals and often swindling them out of large sums.
The national and regional financial regulators across the world regularly issue warnings against unregistered binary options brokers. Earlier today, for example, Canada’s British Columbia Securities Commission warned that the Opteck binary options broker is not registered.
Trading with unregistered and unregulated brokers usually carries higher risk of loss, as they are not abiding by the rules and usually are not members of any self-regulatory bodies and financial compensation schemes.