AMF, the financial markets regulator of the Canadian province of Quebec, has updated its black list of binary options brokers by adding 13 more:
The full list can be seen on AMF’s website. The regulator notes that it is not exhaustive and the fact that a broker is not on it, does not mean it is allowed to offer binary options in Quebec.
Even though trading in binary options is not explicitly forbidden in Canada, there are no brokers authorized to provide this service, hence all of them are operating illegally, including the ones properly regulated elsewhere and/or owned by reputable companies.
In its statement, the AMF once more alerts the Quebec consumers that trading in binary options is extremely risky and is akin to gambling.
“Despite our many appeals to be wary of promises of payouts associated with binary options, we continue to receive reports and requests for information from the public,” said Jean-François Fortin, AMF Executive Director, Enforcement, quoted in the press release.
Victims of this type of scheme are tempted by the allure of quick profits or an easy first-time investment opportunity, the regulator noted and added it is concerned that consumers are being solicited aggressively to invest on other platforms to recover their losses, and that some are unfortunately responding to these offers and are being defrauded a second time.
It is worth noting that some of the new additions to AMF’s list have been singled out by other regulators as well. One such example is TitanTrade, which is one of the most frequently warned against binary options brokers this year. Another is MagnumOptions, which has popped up in warnings from Manitoba‘s, British Columbia‘s and Nova Scotia’s securities commissions, as well as on a list of Bulgaria’s Financial Supervision Commission.