Canadian provincial financial regulator British Columbia Securities Commission (BCSC) has issued a warning against binary options brokerage and platform holder Wirestech Ltd., operating as BigOption, for the company operates within the province without authorization.
The broker is not registered in British Columbia as required to trade in, or advise on, securities or exchange contracts. The regulator said, however, that it became aware of a local citizen who was solicited by BigOption representatives to open an account with the broker and trade in binaries, according to a notice published on the BCSC website on Friday.
Late last month, another Canadian regulatory body, the Ontario Securities Commission (OSC), also warned against BigOption for operating unauthorized.
On its website, www.bigoption.com, BigOption does not have information regarding licensing or regulation. The broker is based in London and offers a fully web-based trading platform and trading in binary options, one-touch options, and pair options with a payout of up to 85%.
In the British Columbian legislation, binary options are regulated as securities under the securities laws. In this type of trading, investors guess whether the price of a certain instrument would go upwards or downwards within a pre-determined time frame. Once the time is up, the option is deemed expired and the bet is settled. Depending on the outcome, a trader either looses all or collects an attractive profit.
In the forex world, binary options are the closest thing to gambling. It presents great risk and can result in substantial losses. Worldwide, regulators have been active in issuing warnings against binaries brokers either because they are non-regulated or because they act suspiciously and represent high risk for investors and their funds.
In Canada, binary options are not forbidden, but providers of such services need to be regulated in order to operate in the country. In Canada, capital markets fall under the regulation of provincial watchdogs and legislation rules may vary in from province to province. In March, the Canadian Securities Administrators (CSA), an umbrella organization of Canada’s provincial and territorial securities regulators, warned that there is not a single binary options broker or platform authorized or licensed to operate on the country’s territory.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.