FCA UK warns against Binary Options broker Plusoption and several brands under its management. The FCA stated that firms under the spotlight have been providing professional investment services to the UK residents without any permission from the regulators.
13 March, AtoZForex – The UK’s financial regulatory body, the Financial Conduct Authority (FCA) has issued a number of warnings on its website for the investors’ attention. The latest FCA warning features the name of the Binary Options brokerage Plusoption and several brands operated by this entity.
FCA UK Warns Against Binary Options Broker Plusoption
The UK financial markets watchdog stated that firms under the spotlight have been providing professional investment services to the UK residents without any permission from the regulators. In addition, the UK FCA has stated that Plusoption has no connection with any of the FCA-licensed entity.
The UK financial markets supervisor further stated that it has red flagged Plusoption due to operating and targeting the UK citizens without any valid license in place.
The official announcement from the UK FCA also notes that Plusoption operates online via www.plusoption.com. The entity has acquired several brands that include Redfield Markets, Tradeplus Solutions Ltd and ACV Operations S.R.L. The UK regulator cautions that this is a typical move that many scam companies follow. They do so in the attempt to gain the trust of the potential clients.
In the meantime, the UK FCA has been active in relation to the oversight of the Binary Options industry recently. Complementing its list of warnings, the regulator has published a list of 94 firms that offer trading to the UK based investors without any authorization from the officials.
In addition, the FCA has established certain types of rules in regards to the particular Binary Options products, thus following the best practices of the new EU-wide regulation framework, MiFID II.
Earlier last November, the FCA has issued an announcement in regards to the risk of investing in Binary Options. The regulator has called Binary Options “high-risk and speculative products.”
In its release, the UK regulator has drawn the attention of investors to the number of points. For instance, the regulator has highlighted the definition of Binary Options:
“Binary options allow a consumer to make a bet on the value or price of a stock, commodity, currency, index, or just about anything that is capable of being measured in financial terms. The time periods involved tend to be very short (often around 30 seconds to 5 minutes).”
In fact, the data from the FCA indicates that the majority of traders lose money when making bets. The regulator also stated that consumers find it difficult to achieve sustained profits over a series of bets.
Think we missed something? Let us know in the comments section below.