No Such Thing as Canadian Regulated Binary Broker
And never has been…
We reported earlier this month on how “Crackdown is Working: Binary Options Brokers are Asking Marketers to Stop Recruiting Canadian Investors” – and after doing some digging we have found out a mind boggling and frightening fact that there has never been such a thing as a Canadian regulated binary options broker. There are also no current brokers that are officially regulated by any of the Canadian regulators including the BCSC (British Columbia Securities Commission), the CSA (Canadian Securities Administrator), the MSC (Manitoba Securities Comission) or the OSC (Ontario Securities Commission).
What Does This Mean – Canada Has Been Sleeping on The Watch
This means that for over a decade, unregulated binary options brokers, many of them using various methods of indecent practice, have been accepting clients from Canada and making tens if not hundreds of millions of dollars. Has this all happened under the radar? Why is it that only just a couple of years ago the regulators started posting warnings about this? How is it that they are just now waking up? Why is it that just now they are looking into this issue?
Without having any real concrete information from anyone of the Canadian regulators all we can do is speculate as to why this happened and how. It seems though that most of the binary options brokers have decided to stop accepting Canadian traders because of “regulatory issues” and that for now the regulator warnings and fines have made brokers back off but how can it be that not even 1 single broker ever received an official Canadian license and regulation?
What Should Canadian Traders Do?
Canadians that feel the need to bet on binary options and other speculative high risk trades, should probable stay as far away from possible as they can from any binary options brokerage until the Canadian regulators officially license a true and legit brokerage. In the USA we know that NADEX is fully licensed and regulated and they have a very strong reputation. Maybe in the near future the Tradologic BINAREX exchange will also step up and fill the void for traders and speculators that want to trade binary options without having to worry about being swindled.
For now Canadians will have to just steer clear and like always, we will have to wait and see..