ASIC Bans 4 Binary Option Brokers

Another regulator has just joined the fight against unregulated Binary Options brokers. The Australian Securities and Investment Commission (ASIC) just added 5 brokers to their “black list”.

These brokers include 365BinaryOption, Pearson Investments, Libor Capital and CFD Stocks. The view held by the ASIC is that brokers who are offering their services to Australian clients should be regulated. If they are not they could be involved in binary option scam tactics.

The ASIC also claimed that the following brokers had been involved in making calls and emails to residents in Australia without having being contact first. This was all done without prior authorisation by the ASIC.

This follows on the heels of similar announcements that were made by the Canadian regulators last week on brokers including Binary Tilt and Hedgestone group.

Unlike the regulators in the USA and Canada, Australia does allow some brokers to contact Australians yet a number of conditions must be met before this could even be considered.

Unsolicited email promotions are usually the backbone of the elicit Binary Options scammers. The ASIC recently also warned Australians to be careful of these types of emails especially around Christmas time. They quoted that “..such products were traditionally targeted at inappropriate investors who were less likely to profit from dealing in the financial product”.

FXaxe has covered the numerous global Binary Options regulations and has a number of ASIC approved brokers for traders to choose from.