The UK Financial Conduct Authority (FCA) warned binary options brokerage CWA Options has been providing financial services in the country without being authorized. The broker operates via the websites www.cwa-options.com and www.cwaoptions.com.
Almost all providers of any type of financial services are required to be authorized in order to do business in the UK. The FCA noted that some firms act without our authorisation and some knowingly run investment scams.
CWA Options provides a directional trading platform for binary options on forex pairs, stocks, indices and commodities. Traders can earn up to 90% payback, according to the broker’s website. Investors can also work with a personal account manager. The broker services retail and institutional traders globally.
The broker claims to be based in London, but it provides not information regarding authorization or licensing,
The UK is a strong forex market with tight regulation. Nearly all financial service providers are required to hold a license by the relevant authority. An FCA license provides access to the rest of the countries in the European Economic Area (EEA). Without a license, however, forex brokers are not allowed to provide financial services in the country.
The FCA is renowned for its strict standards and tight supervision. It keeps a register of authorized forex and binary options brokers where investors can look up a broker prior to engaging with it. It also issues warnings against entities that could possibly harm investors.
Investors should be aware that they can claim a compensation of up to $50,000 under the Financial Services Compensation Scheme (FSCS) in case something goes wrong, but only if the broker they are working with is regulated.
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.