The Australian Securities and Investments Commission (ASIC) warned Australian investors not to click on any advertising of the TitanTrade binary options broker and not to sign up for binary options trading or other products or services offered on its site www.titantrade.com.
The reason is that the broker is not holding an Australian financial service (AFS) license and is not authorized by any AFS licensee, as required by local law. The ASIC is concerned, however, that TitanTrade is nevertheless offering financial services both on its website and via its webinars and is misleading the Australian public.
This is why on July 26 the ASIC has taken action in the court to restrain the operators of the website (Titan Trade Solutions Ltd.) from carrying out financial services without a license. The court has banned both the operator and persons and entities who may have received funds from the website to issue financial products, including binary options trading, advertising its products and operating the site in Australia. The court order is valid until November 16, 2016, while ASIC continues its investigation of the site and persons and entities, including Allianz Metro Pty Ltd, who appear to have received payments from it.
“Unless an Australian license has been obtained by the operators of the Website, the Australian public should avoid signing up for any of the financial services listed on the Website,” the ASIC notes and adds the potential investors are likely to suffer detriment as a result of being misled.
According to its website, TitanTrade is based in London, but is not regulated by the Financial Conduct Authority (FCA).
This is not the first warning against the broker. In April Italy’s financial watchdog CONSOB warned that it is not licensed to provide financial services in the country.