The British Columbia Securities Commission (BCSC) has issued a warning that the GTOptions binary options broker is not registered to trade in, or advise on, securities or exchange contracts in British Columbia (BC).
“We urge BC residents to exercise caution when dealing with firms that are not registered to trade or advise in BC”, the BCSC wrote in its publication.
GTOptions is a binary options broker that claims to be based in Bulgaria. It, however, is not regulated by the local Financial Supervision Commission (FSC). It is not the first time the broker appears on a warning list. Not long ago, the Cyprus Securities and Exchange Commission (CySEC) has included GTOptions in a warning list of around 100 unregulated forex and binary options brokers.
The lack of regulation does not necessarily mean its operations are illegal, but it is highly advisable to be careful when dealing with unregulated brokers, be they forex or binary options. As a general rule, clients should be extra careful with binary options brokers – regulated and unregulated alike.
Under Canadian and British Columbia legislation, binary options are considered securities and the companies trading in it have to be licensed by the respective regulators.