The Manitoba Securities Commission (MSC), the financial regulatory body of the Canadian province of Manitoba, issued a warning on Wednesday against binary option broker B4Binary and SG 55 Ltd. which operates without being authorized.
B4Binary, www.b4binary.com, is a brand of SG 55, which claims to be based in the UK. The company is missing from the Financial Conduct Authority’s (FCA) Financial Services Register.
The two entities are not registered in Manitoba to engage in the business of trading securities or advising anyone with respect to investing in, buying, or selling securities, the regulator’s notice read.
The broker offers trading in binary options on various instruments, including forex, stocks, commodities, and indices. It promises a welcome bonus of up to 100% and payouts of up to 89%. Traders can choose from four trading account types (Silver, Gold, Platinum, and VIP) or the services of a professional broker under a managed account program.
B4Binary is allegedly operating out of Leeds, the UK, China, and Israel.
Last month another Canadian regulator, the Ontario Securities Commission (OSC), also issued a warning against B4Binary for operating unauthorized.
Although binary option instruments are not illegal in Canada, brokers need to acquire regulatory approval in order to offer them to local citizens. They are considered securities and fall under the jurisdiction of the relevant provincial watchdogs. Earlier this year, the Canadian Securities Administrators (CSA), an umbrella organization of Canada’s provincial and territorial securities regulators, warned twice there is not a single binary options broker or platform authorized or licensed to operate on the country’s territory.
When engaging with unauthorized and non-regulated brokers, traders are putting their investments at higher risk. We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.