The growing popularity of trading in binary options has been highlighted with a mounting number of so-called scam sites and unauthorised traders being blacklisted.
Recently, the UK, France and Canada have taken action to help protect traders in what can be a lucrative market.
The Financial Conduct Authority (FCA) has announced that FX firm KSFTrade is operating without a licence.
The financial markets regulator, which has a campaign to protect investors in the UK from unscrupulous brokers, says the company has been providing financial products and services online without authorisation.
Any company offering financial services to retail customers in the UK, or trying to solicit business, is not allowed to operate without a licence being granted by the FCA.
Binary traders: check the FCA’s financial services register
Potential binary option trading investors can expect the FCA’s financial services register to check that the firm they want to trade with is listed – and licensed.
The FCA’s warning was followed up by the Ontario Securities Commission who say binary options firms HasOptions and OneTwoTrade are also unauthorised.
Both firms are the trading arms of a company called Up & Down Marketing Ltd and it does not, says the commission, have the necessary licence for its services.
Indeed, the growth in online firms offering binary trading facilities is growing at such a rate that the Canadian Securities Administrators has announced that it will now begin a blacklist of these companies.
The Canadian plan follows in the footsteps of a similar list created by the French watchdog, the Autorité des Marchés Financiers (AMF).
List of unauthorised binary options trading websites
The AMF has also recently announced that it has published its latest list of unauthorised binary options trading websites.
The blacklist now features 223 entries which is a rise of 34 since its last update in March.
All of the services listed do not have the correct licence to offer binary option trading facilities to French investors.
When publishing its latest list, the AMF urged investors to be extra careful when it comes to selecting a binary options provider because trading carries huge risks as well as rewards.
The blacklist of binary option traders can be found on the AMF website.
Italian watchdog blacklists two binary firms
The Italian financial services watchdog, Consob, has also announced that it is warning investors of a firm called City Equities and LiveTrader – which also trades as NTD Invest Corp Ltd.
The organisation says that neither company is authorised to provide binary option investment services for Italian investors.