Do not invest more money than you can afford to lose.
Canadian provincial financial regulator British Columbia Securities Commission (BCSC) issued last week a notice in which it warned binary options broker Edgedale Finance operates within the British Columbia province without having the required authorization.
The broker offers binary options platform and trading services to citizens of British Columbia and at least one local was able to open an account and invest with it. Under the local regulation, financial providers need regulatory authorization in order to operate in the province. Binary options are considered securities and fall under the supervision of the BCSC and Edgedale Finance is not registered to trade in, or advise on, securities or exchange contracts.
Edgedale Finance says on its website, www.edgedalefinance.com, it is based in London, without providing any information regarding regulation or authorization. The broker provides access to the forex, stocks, commodities and indices markets. It offers four types of trading accounts depending on the amount of deposit– Entry Level ($250-$5,000), Preferred ($5,000-$25,000), Signature ($50,000-$250,000), and Premium (exceeding $250,000).
In binary options, 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. As of today, 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.
