UK’s Financial Conduct Authority (FCA) has published a warning against the TFX Traders binary options broker. According to the notice, the broker has been providing financial services or products in the UK without the necessary authorization. The FCA reiterated its admonition of dealing with unauthorized firms.
“Find out why to be especially wary of dealing with this unauthorised firm and how to protect yourself from scammers,” said the FCA.
According to its website tfxtraders.com, the broker offers trading in binary options on stocks, commodities, forex and indices, both to retail and institutional traders. Its office is located in London. In spite the fancy site and terminology such as “directional trading” and “directional trade options” used in it, apparently it is an unregulated binary options broker.
The binary options brokers, both regulated and unregulated, are a growing pain in the butt for many financial services regulators and they are seeking means to curb their activities. In some countries, such as the US, binary options trade is strictly regulated and allowed on three licensed exchanges.
In Canada there is not a single authorized binaries broker, which practically means trading in binary options is not permitted. This, of course, does not stop them from cold calling and soliciting Canadians.
In Israel binary options trading was banned earlier this year, even though there are many binaries brokers registered there. They, however, offer their services abroad and are mostly regulated in the hotbed of binaries brokers – Cyprus. Recently the local regulator, the Cyprus Securities and Exchange Commission (CySEC) tightened somewhat the rules about binary options brokers.
Earlier this year France’s AMF called for a ban on advertising of forex and binary options brokers, while Russia is already mulling a ban on binaries altogether.