Early this week, the Autorité des marchés financiers (AMF) released an investor warning advising traders located in Quebec who seek to trade binary options to thoroughly review any platform to ensure it is regulated and not a scam.
The Autorité des marchés financiers is the regulatory authority mandated by the the government of the Canadian province of Quebec to oversee the province’s financial markets and to ensure consumer trust in financial products and services. The Canadian regulatory system is different than most countries’ as it doesn’t have a federal regulatory body such as the CFTC in the United States. Each province has an independent body with the legal authority to regulate local markets. An outgrowth of this system is that certain companies, products, or service maybe authorized in one province and not in another. Most Canadian provinces adhere to a ‘passport system’ whereby the approval of a financial company, product, or service in one province will automatically pre-approve it in the remaining provinces. But, this isn’t always the case and it is best to check with your local provincial authority.
The investor warning release made by the AMF was prompted by an institutional concern for consumers who were enticed by aggressive marketing practices. AMF President and CEO Louis Morisset was quoted as saying “We are especially concerned that consumers have been enticed by attractive payouts..have exposed themselves to a high risk of fraud.”
There are many binary options platforms online. Many of them are reputable and adhere to the highest professional standards. Unfortunately binary options scams do exist on online and it is important that any new trader, or experienced trader looking to open an account with a new platform does due diligence to avoid binary options scams.
Along with a warning, the Autorité des marchés financiers released a list of binary options platforms that are not authorized to operate in Quebec. The AMF updates the list regularly so make sure to check back to our daily news to be up to date with regulatory news as well as technical and fundamental market analysis.
Below is a list of binary options platforms not authorized to operate in Quebec.