Canada VS Binary Options
None of the Canadian regulators have licensed any binary options brokers at all this year nor will they do so in 2017 from what it looks like, in the following public information article released on the ASC website yesterday called “New year, new investor risks to watch out for”.
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New year, new investor risks to watch out for
Did you make a money resolution for 2017? Perhaps you vowed to save more diligently for retirement or pay off your debt? Your financial goals could be compromised if you fall victim to investment fraud. In a recent press release, the ASC’s enforcement and public inquiries office compiled a list of top risks for Alberta investors in 2017:
#1 Unregistered sources – Many people consult restaurant reviews before choosing to dine out to avoid disappointment or wasting their money. At the very least, the same consideration and due diligence should be paid to a potential investment opportunity. With limited exceptions, any firm or individual selling securities or offering investment advice in Alberta must be registered and there is a free and easy way to check at www.aretheyregistered.ca.
#2 Binary options scams – This top risk also made the list in 2016 and you can “bet” on the fact that there are still no registered binary options dealers in Alberta or Canada in 2017. Binary options are essentially “bets” on whether the value of an asset will increase or decrease in a fixed time frame. For more on binary options, watch this financial fraud explainer video.
#3 Offshore investments – If an investment opportunity involves sending funds to a company with “offices” overseas, it’s a red flag. When investors send their money overseas and something goes wrong, it can be difficult or impossible to get the money back, and unfortunately regulators and agencies in Canada can do little to help.
#4 Deceptive online advertising – Like many marketing and advertising companies, scam artists know the power of social/online media as a promotion tool and use this knowledge to their advantage. They may use photos of celebrities in their ads (without permission), who appear to be endorsing the investment as a tactic to lure people in who believe that a well-known celebrity supports the investment.
#5 Being lured by “the next big thing” –While investing in an emerging industry might sound appealing, it’s important to use caution before buying into the hype. There are usually very little facts available on these new companies, which makes it easy for scam artists to spread false information.
Make 2017 your most financially successful year yet, make informed investment decisions and minimize the risk of falling victim to investment fraud. Happy New Year!