It appears that the appeal of binary options trading is so big that the industry is literally inundated by firms offering online retail binary options trading services and claiming to be licensed to do so when in fact they are not.
Regulators and market watchdogs in many jurisdictions are finding hard to keep up pace and effectively clamp down on such misleading practices. One such watchdog, is the Cyprus Securities and Exchange Commission the pertinent authority in the jurisdiction of Cyprus which a popular hub for forex and binary options brokers. CySEC has often been criticized for being too lenient with brokers and it has been taking measures to toughen up its position and improve its image as a regulator.
Within this framework it has recently turned its attention on Fundsaver Services, a firm that is behind several binary options brokerage labels, which falsely claim to be CySEC regulated. The first incidence occurred when on 10 September 2015 CySEC issued a warning against Fundsaver Services in its capacity of being the parent of www.ubroker.com ,informing the public that this entity has never gained a license to offer binary options trading in the jurisdiction of Cyprus and thus it is not allowed to do so.
The next episode came a few days later, when a warning was issued on 28 September again against Fundsaver Services, this time for its brand www.500option.com.
It appears that the warnings were not very effective, as CySEC was forced to turn its attention again on Fundsaver Services and issue another two warnings today, one regarding the company’s brand name of www.everyoption.com and a repeat warning against www.500option.com. What is more surprising is that on the website of the latter it is claimed that it has been regulated by CySEC for more than 10 years, a claim that according to the regulator is completely false and thus a plain lie.
Since it appears that many binary options brokerages have no inhibitions in publishing misleading statements and claims on their websites it is always best if traders do not take such statements for granted and at face value and check with the relevant regulators first, before opening an account with a specific broker. In the case of CySEC this can be done easily by visiting the watchdog’s website, where all the investment firms licensed and regulated by it are clearly listed.
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.