Be careful: Selling binary options to the general public is prohibited in Québec.End of the warning
Are you looking for investments with high returns on the Internet? Be careful. Offers that promise a quick profit without risk can expose you to fraud, including schemes related to binary options.
What are binary options?
Binary options offered illegally on the Internet are akin to a game of chance or a lottery. You are invited to wager that an asset will rise or fall in value within a very short, specific amount of time, for example 10 minutes. The asset may be, for example, shares, a commodity or a currency. At the expiry time, you face two possible outcomes: a pre-determined “virtual” gain or the loss of your wager.
Despite what you are promised, it is impossible to make money with binary options on the Internet. The expected profit turns out to be negative and, what’s more, your losses will widen through obscure transaction fees. A number of websites try to earn your confidence through simulated transactions using hypothetical amounts of money. You go through the simulations and generally come out a winner. But the simulations are far from reality. When you invest your own money, you’ll incur a loss.
Dice are loaded
Binary options trading platforms open to the public are often associated with scams, including identity theft, embezzlement and rigged platforms. The latter two schemes take place when an investor opens an account and starts winning wagers with small amounts. Once he feels comfortable enough, the investor often wagers larger amounts. However, the results are not tied to market fluctuations, but are manipulated for the benefit of the platform promoters.
The AMF has also noted cases where investors forwarded photo IDs to claim their profits. Unfortunately, in addition to never receiving their profits as promised, these investors could be victims of identity fraud.
If you’ve tried your luck on a binary options platform, notify the AMF. This could help other investors from falling victim to fraud.
Register of firms and individuals authorized to practise
Check whether your representative is authorized to sell you the product he is offering you.End of the insight
No website is authorized to sell binary options in Québec!
This list is not exhaustive. Note that some of these sites no longer market binary options, having branched out instead into similar “hot” financial products (e.g.: cryptocurrency CFDs) offered illegally. Stay informed!
Examples of websites that solicit investors illegally
Documentation and tools
- Red-flagging financial fraud (pdf - 2 MB)This link will open in a new window Updated on 23 October 2015
- Choosing an Investment Dealer or Representative (pdf - 3 MB)This link will open in a new window Updated on 22 August 2016
- Trust must be earned! (pdf - 1 MB)This link will open in a new window Updated on 15 September 2014