The Financial Conduct Authority (FCA)
UK’s financial services watchdog, The Financial Conduct Authority (FCA), has announced warnings against several unregulated binary options brokers and a portfolio management firm. BigOption, Rbinary and VIP Brokers are the binary options brokers that FCA has warned against for providing financial services or products without authorization.
Furthermore, LTX Markets has been targeting clients in the UK and is also conducting financial activities that require regulation without FCA’s authorization.
1. BigOption’s website is currently down, so I could not get further information about this company. However, looking at its name, it is safe to say that this is an unregulated binary options broker.
2. Rbinary is a binary options broker, also social trading platform with claimed returns up to 80%. There is no information on the website about the company who owns the brand, but according to the Terms and Conditions, the Company is registered in the Marshall Islands.
3. VIP Brokers is registered in the Marshall Islands and owned by Wilkinson Development LTD. The broker offers different account types with promised returns between 80% to 90%. We should say that it is common to see that binary options brokers promise high returns, but in reality most of option traders lose their money.
LTX Markets claims to offer automated portfolio management systems on fixed return contracts based on the clients’ investment objectives and risk sentiment. Supposedly, the company is headquartered in UK and has offices in South America and Switzerland.
I keep saying that investors who are intending to open trading account with a binary options broker, that is registered in offshore regions such as the Marshall Islands, must think twice. The same goes with forex brokers as well. Many of those brokers are simply scams, and even if they are not, the clients have no financial and legal protection if things go sour.
On the other hand, all forex brokers licensed by UK’s FCA goes under strict regulation and standards.