France’s financial watchdog, the Autorité des Marchés Financiers (AMF) issued a warning against binaries trading software Preditrend on Friday.
The program is widely marketed via social networks, email campaign and through a couple of websites: predi-trend.com, preditrend.com and starupf5.com. These sites are related to WGM Services Ltd, a Cypriot company, operating as Eztrader, which has been recently fined by the Cyprus Securities and and Exchange Commission (CySEC).
The emails and websites promoting Preditrend are targeting the largest number of people possible, flaunting unrealistic promises about profitable trades and large gains to be made. Due to the hazardous nature of the offer and binary options in general, AMF urges the public to be on alert regarding Preditrend and all similar algorithmic trading offers.
Earlier this month Marielle Cohen-Branche, the ombudsman of the French financial regulator AMF published an annual report, turning the public attention to the rising number of complaints against forex and binary options brokers, most of which are CySEC-regulated. According to the report, the total number of complaints against forex and binary options brokers in 2015 was 228, 85% of which were against CySEC-regulated forex and binary options brokers.
In an attempt to discontinue these malicious practices, CySEC tightened the requirements for the binary options brokers earlier in April.
What is more, the French regulatory authority published a list of unregulated binary options brokers in March, which is not exhaustive, as new unauthorized binary options brokers appear all the time. In fact, the majority of financial regulators in the world issue warnings of unregulated binary options as such spring up like mushrooms after the rain.