Binary Options broker Tooptions warned against by Hong Kong watchdog

The battle between financial markets regulators and unlicensed brokers across the globe continues unabated as the online retail binary options trading market expands and moves closer towards regulation. Watchdogs keep issuing warnings to help investors protect themselves by avoiding to deal with brokers who are not properly authorized and regulated.

The most recent case of a regulator warning against a binary options broker comes from Hong Kong, where the Hong Kong’s Securities and Futures Commission (SFC) has proceeding in adding one more company to its Alert List, which is the list that includes the names of firms that target Hong Kong investors although they are not authorized to operate in the jurisdiction of Hong Kong.

The broker that was most recently added to the said Alert list is called HongKong Tooptions Limited and it operates via www.tooptions.com, through which it the offers a range of binary options trading services. The Hong Kong regulator points out in its relevant announcement that although the company claims to have offices at the following address: Unit 17, 9/F, Tower A, New Mandarin Plaza, No 14 Science Museum Road, Tsim Sha Tsui, Kowloon, Hong Kong, in fact no such offices are actually found at this location.

 

Urging investors to exercise caution, the Hong Kong Securities and Futures Commission points out that the company in question is unlicensed to market its services in Hong Kong. Moreover, the regulator takes the opportunity to also warn potential investors of the common practice known as cloning, which is often employed by unlicensed entities, during which they use names similar to those of legitimate companies in order to confuse investors.

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George Milios

George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.

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