The Italian regulator CONSOB issues a warning against GMOption, a binary option brand owned by LinkGM Limited. Is GMOption Scam or reliable?
28 February, AtoZForex – The Italian Securities and Exchange Commission (CONSOB) is the public authority responsible for regulating the Italian financial markets. The regulator has issued an investors’ warning about GMOption and its associates LinkGM Limited and BT Systems Ltd. According to the warning, the said firms are not authorized to provide investment services or carry out any financial activities in Italy.
Is GMOption Scam or reliable?
The Italian regulator CONSOB has added the binary options broker GMOption to its warning list. The firm operates through the website of www.gmoption.com. This website is owned and operated by LinkGM Limited. The company provides its UK address as Tea Factory, Wood Street, Liverpool L1 4DQ. It, however, mentions no information regarding regulation. GMOption offers a web-based platform for binary options trading on a wide range of products. This includes currencies, cryptocurrencies, commodities, metals, energies, indices, stocks, and others.
The CONSOB warns the Italian investors to avoid trading with this broker and its associates. The regulatory entity warning list contains unauthorized names of businesses in Italy that are not registered with CONSOB. They are also believed to have targeted local investors or made fake claims to be associated with the regulated entities.
Which other companies are on the warning list?
Additionally, CONSOB has published a warning against a list of other financial companies that have been listed as trading fraudulently by other financial regulators. Moreover, protecting the investing public is the aim of the Italian regulator. It also conducts investigations with regards to potential violations of insider dealing and market manipulation law.
In Italy, as in any other EU member, financial institutions, including Forex and binary options brokers, are not allowed to function without being registered or authorized from the local authorities or the relevant regulator of any other EU country. Moreover, if a broker is licensed in any European member state, the license allows it to provide services in the rest of the union.
What does the regulator recommend the investors?
As a result, the regulator recommends the investors to check the list of the firms registered and authorized by them. They should check the list before they deposit any funds with the broker particularly if the related broker used aggressive marketing techniques.
Investors are putting their investments at higher risk when engaging with unauthorized and non-regulated brokers. It is strongly advised to only deal with regulated brokers, authorized and registered by reputable regulatory bodies. We have reached out to GMOption, but we found them to be unresponsive.
What do you think is GMOption scam or reliable? Let us know in the comments section below.