News

Don't Give Away Your Money to Unregistered Binary Option Websites

June 8, 2017

The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has issued two Cease Trade Orders against FMTrader and Capital Force Ltd.  The orders expire on June 17, 2017 and may be extended.

“Both provincially and nationally we are seeing significant losses to investors dealing with these unregistered binary option companies,” FCAA Acting Deputy Director of Enforcement Harvey White said.  “Staff has been working diligently to reduce the threat to the public.  Over the last two years, Saskatchewan residents have lost more than $490,000 US.”

 

FMTrader uses the website of www.fmtrader.com, and claims to be located in the United Kingdom.  The second company, Capital Force Ltd., operates out of Samoa and uses the website www.option888.com.  These companies are not registered to trade securities or derivatives in Saskatchewan.  Anyone dealing in binary options in Saskatchewan must be registered with FCAA.

Many binary option trading companies’ websites contain references to being registered to do business; however, registration is usually in a foreign country and not applicable in Canada.  Any unsolicited calls or online offerings of investment opportunities should be immediately followed up by checking to see if the companies are registered to sell securities or derivatives in Saskatchewan.

Investors can check the registration status of any person or company selling investments by using the Canadian Securities Administrators’ National Registration Search database at www.aretheyregistered.ca.

FCAA has published for comment a ban on advertising or selling binary options to individuals if the time period specified in the binary option is less than 30 days.

Anyone contacted by FMTrader or Capital Force Ltd. or any of their representatives should contact the FCAA Securities Division at 306-787-5936.

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For more information, contact:

Shannon McMillan
Financial and Consumer Affairs Authority
Regina
Phone: 306-798-4160
Email: shannon.mcmillan@gov.sk.ca

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