Financial service IFSC alerts BinaryOptionInvestors’ license is fake
The International Financial Service Commission (IFSC) of Belize warned in a notice on Wednesday it has never licensed BinaryOptionInvestors Inc., despite the company’s claims otherwise.
The broker claims to hold a license for a brokerage, consultancy and advisory services in foreign exchange issued by the IFSC and signed by Gian C. Gandhi, former director general of the regulatory body. The watchdog, however, called this statement “a complete forgery” and alerted that the binaty options broker is not regulated by andy authority in Belize to engange in any type of trading.
The regulator noted that investors should take note and be cautious when engaging with financial service providers. Entities that are not licensed and authorized present higher risk.
Read also: Belize’s IFSC Warns FX firm ATS Markets
BinaryOptionInvestors claims to be based in Russia. On its website, www.binaryoptioninvestors.com, the broker offers trading in binary options on currency pairs and commodities. The broker offers four types of trading accounts, depending on the amount of deposit and profit – Basic ($1000-$2000, 10% profit), Premium ($3000-$4000, 12% profit), Professional ($5000-$6000, 15% profit), and Gold ($7000 and above, 18% profit). BinaryOptionInvestors not only offers very low return on investment, but it also charges a service fee of 15% on clients’ net profit.
Belize is known as an offshore destination and is renowned for its milder regulation and licensing requirements and lower incorporation costs.Earlier this week the IFSC made it to the financial market news headlines with its unexpected decision to delicense BDB Services (Belize) Ltd., the local branch of over-the-counter (OTC) binary options broker Banc De Binary.
Belize is usually known as an offshore destination with very lax supervision over authorized financial service providers. The regulator rather relies on self-regulation by licensees. Nevertheless, a broker license is attractive to traders as it brings them a feeling of confidence and security when choosing a broker.
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.