After multiple complaints filed by many representatives of the English-speaking trading community, the CSA, Canada’s financial regulator, decided to ban a number of binary options brokers. All in all, there are 37 brokers on the blacklist. The decision was made on March 9th, 2016.
It is interesting to note that the CSA is going to expand the blacklist, should some other brokers compromise themselves. That is why the financial regulator urges the trading community to the regulator’s websites and report their complaints on other brokers if they are trying to play dirty tricks or scam their customers.
Loss of Trading Capital - Major Risk With Binary Brokers
According to the professional trading community of Masterforex-V Academy, binary options are nothing but a certain kind of casino business tailored to financial markets.
Basically speaking, binary options traders, like casino players, bet on how the chosen asset (for instance, EURUSD) is going to behave over a certain period of time. Simply put, they can bet on whether EURUSD goes up or down in, say, 5 minutes relative to the current price level. There is nothing wrong with that. If the broker is honest and doesn’t play dirty tricks on you, there is a chances to capitalize on trading binary options provided that you have enough skills and expertise in doing so.
Still, the thing that spoils everything is the fact that there are many scams operating in the niche, which is why the folks may have a hard time telling reputable and honest companies from fakes. The thing is that a lot of binary brokers are registered in offshore areas and their businesses are regulated by local legislation. When dealing with offshore brokers, some traders may face a serious problem when trying to withdraw their profits, if this happens to be a disreputable broker.
Is it possible to make money trading binary options? Yes, it is!
However, Masterforex-V Academy experts say that this is possible only if you are an expert in trading binary options and if you trade with a reputable broker.
A couple of years ago, a scam FX broker named Broco refused to pay a Masterforex-V Academy trader $8000 of profit. In 6 months, the broker was banned in the USA and disappeared with client funds. With that being said, it is crucial to go with a reputable broker.
CSA’s Blacklist 2016
The regulator’s blacklist contains 37 binary broker to date. However, it is strongly recommended to visit the regulator’s official website to check the blacklist for updates. For now, the blacklist looks as follows:
10trade.com, 24option.com, 247binary.com, 24winner.com, amberoptions.com, anyoption.com, bancdebinary.com, binareo.com, binarytilt.com, bosscapital.com, cedarfinance.com, cherrytrade.com, dragonoptions.com, fmtrader.com, goptions.com, grandoption.com, gtoptions.com, leaderoption.com, lionlive.com, no1options.com, onetwotrade.com, opteck.com, optionfair.com, optionrally.com, optiontime.com, optionweb.com, option.fm, poweroption.com, rboptions.com, redwoodoptions.com, stockpair.net, sycamoreoptions.com, topoption.com, traderush.com, tradersking.com, triumphoption.com, ubinary.com.
However, the CSA’s decision seems to have had zero impact on the binary options industry in Europe, where binary options have been very popular with traders of all kinds. Still, the CSA’s ban may well trigger a wave of closer attention to the industry by other financial regulators and central banks worldwide.
Different financial regulators exchange valuable information with each other and are perfectly aware of the fact that a blacklisted company may violate the law in other countries as well.
That’s why savvy clients of such blacklisted companies are among the first to start withdrawing their funds since they know what’s probably going to happen next. However, this is happening everywhere expect Russia and the CIS. Let’s consider 24option as an example.
The company concealed the incident from the clients and keeps on promoting the service through Yandex.Direct and Google AdWords.
The company’s official website says that it can boast as much as 9 prestigious awards!!!
24option is still a member of Russia’s CRFIN.
Rodeler Limited, which owns 24option and some other related brands, keeps on promoting them in the EU. It is licensed and regulated by the CySEC. The licenses are given to:
www.24option.com, www.rodeler.com; www.24fx.com; www.grandoption.com; www.quickoption.com; www.24option.it; www.24option.ru; www.24option.eu; www.24option.de; www.24option.fr; www.24option-tr.com; www.24option.es:
The bottom line is… ambiguous at best. A binary options broker banned in Canada is officially licensed and allowed in Russia, the CIS and even the EU.
Ratings Should Be Up To Date
Under circumstances when financial regulators blacklist brokers ONLY AFTER they scam people or have already done something illegal, he only way for the average trader to avoid such scams and fakes is to make use of unbiased ratings of brokers. While most ratings out there keep on promoting those brokers banned by the CSA, there is a handful of ratings that stay honest and unbiased.
On top of that, Masterforex-V EXPO is the only source of ratings that was quick to reach to the incident and instantly updated the ratings of binary brokers based on the CSA’s blacklist.
As you can see from the screenshot of the rating of binary brokers by Masterforex-V EXPO, none of the 37 blacklisted brokers can be found in the ultimate league of binary brokers, which is includes the industry’s most reliable companies to date. Moreover, 6 out of 37 brokers belong to the secondary league. With that being said, if you want to go with a secondary league representative, please keep in mind that you are doing so at your risk. The rest of the blacklisted brokers can be found in the 3rd league, which includes the brokers you are strongly recommended to avoid.
The bottom line is that Masterforex-V EXPO’s ratings can be treated as some kind of leading indicators for the FX and BO industry. This is an unbiased project based on dozens of independent factors taken as criteria for the ratings – from year of expertise to client feedback/open voting. We also fine any broker that was caught blacklisted or playing dirty tricks on their clients. That’s why even tough such brokers as AnyOption, OptionRally, and OptionFair are fairly popular in the industry and have a lot of rating points, they still don’t belong to the ultimate league anymore since they were find for 100 points, which made them go way down. This is basically one of the key reasons why you can trust Masterforex-V EXPO’s ratings. Stay tuned and good trading!
