Multi-asset option broker Binary Selections is not associated with Forex Ltd., as it claims, the country’s Financial Markets Authority (FMA) said in a warning issued on Wednesday. The broker does not hold a derivatives issuer license and is not registered to provide financial services in the country.
The FMA recommends investors should exercise caution before dealing with Binary Selections.
The broker operates via www.binaryselections.com. It offers to both retail and institutional clients trading in a number of instruments, including binary options, bonds, stocks, commodities, and exchange-traded products (ETPs). In addition, it offers retirement savings plans. The broker claims its clients receive on average a return on investment of 60%-70%.
No information regarding regulation is available on its website.
On the other hand, Forex Ltd., to which Binary Selections claims to be associated, is a registered forex broker with a license by the FMA.
Financial service providers operating in New Zealand must be entered into the country’s Financial Service Provider Register (FSPR). Otherwise, they are not allowed to operate there. If a company is included in the FSPR, it is not necessarily licensed or regulated in New Zealand but it is required to be registered if it wants to operate in the country. Entities that are licensed, but are not in the FSPR are not allowed to target local citizens. This rule applies for both entities and individuals who work in New Zealand, as well as those who are based there.
The FSPR is a searchable online register of people, businesses, and organizations that offer financial services in New Zealand. It was created by the government as part of a wider strategy to make the financial services sector more accountable and transparent.