9 June, AtoZForex — The Australian Securities and Exchange Commission (ASIC) issued a warning directed at investors in Australia today. Traders were suggested by the warning to stay away from eight binary options companies. Amongst the eight listed binary options firms were OptionsXO, Citrades and RBOptions.
Reasons for the ASIC warning on OptionsXO, Citrades and RBOptions
ASIC indicated that all the listed firms operated websites offering binary options and related services. None of them had the official authority or the required licenses to carry this out in Australia. The ASIC warning on OptionsXO, Citrades and RBOptions comes from their concern for the safety and security of traders and residents. They believe the firms are attempting to acquire Australian clients by pretending to be regulated legitimate firms.
All the websites of the firms listed allow clients (including residents of Australia) to register live trading accounts and for ASIC this meant a potential risk due to their unregulated status. ASIC concluded that based on this criteria while bearing in mind the safety of all its residents, that they are suggested to avoid these entities until they get appropriate licenses.
Why are the firms registered on identical addresses?
The regulator made several attempts at contacting the listed eight firms. All these efforts were eventually unsuccessful and resulted in the announcement of these warnings to protect the residents from malpractice. The detailed addresses and corresponding websites of all the firms (inclusive of brand or alias names) were listed along with the country of origin and location of incorporation.
– Operating as OptionsXO – Omni Capital Ltd (or Omni Global Solutions SRL) has its addresses registered in the Marshall Islands: Ajeltake Road, Majuro MH96960 Marshall Islands
– Operating as Citrades – is owned by CIT Investments Ltd, while the billing and clearing services of the brokeris provided by Triple S Capital Ltd. CIT Investment Ltd, is also registered on the same similar address: Ajeltake Road, MH96960, Majuro, Marshall islands.
– Operating as RBoptions – Zulutoys Limited is also registered at: Ajeltake Road, Majuro, MH96960 Marshall Islands
The registered addresses of these brokers appear to be identical. One of the reasons for this coincidence is that firms are known to use local agents to acquire registered addresses for mailing purposes. This is usual when the firms have no physical office presence there.
Think we missed something? Let us know down in the comments section.