Canada’s Nova Scotia Seccurities Commission (NSSC) issued earlier this week an alert notice against binary options trading robot Quantum Code Software, aka Quantum Code, since it operates within the Nova Scotia province without being authorized.
The entity is not registered to trade in securities in the Canadian province and cannot offer or advertise such financial services. At least one local resident has been lured by a Quantum Code Facebook advertisement to view an online video explaining Quantum’s platform.
“These types of promotional videos prey upon people’s biggest financial dreams, offering ‘free’ software and impossible-to-refuse guarantees” says Heidi Schedler, senior enforcement counsel with the commission. “But investors are required to provide credit card information when signing-up, despite the claims that all services offered are free. These promotions are, quite literally, too good to be true, and Nova Scotians should be very cautious when providing any personal or financial information online.”
Quantum Code is an automated trading binary options robot. It promises a “100% guaranteed way to make profits everyday” and offers investors “to make over $1,892,460 every month”. Traders need to activate a new account via the Quantum Code website, work with their partner-broker, make a deposit of a minimum $250 and “watch the money roll in”as the software places bets on their behalf. The guarantees made by Quantum Code are rather unrealistic and seemingly target investors with little to no knowledge of trading.
The NSSC is regulating the investment industry in the Canadian province of Nova Scotia. In Canada, capital markets fall under the regulation of provincial watchdogs and legislation rules may vary from province to province. In Nova Scotia, binary options are regulated as securities and it is illegal to solicit investments in the province without registering with the Commission and complying with Nova Scotia securities laws.
Unlike in some other countries, trading in binary options in Canada is legal, but falls under strict regulations. Brokers need to be authorized in order to operate in the country. However, there are no authorized binary options brokers or platforms in Canada.
In binary options 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.
We strongly advise you to only deal with regulated forex and binary options brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.