Is CySEC authorized OptionRally scam or reliable? One of the Canadian provincial regulators, Ontario Security Commission (OSC) has issued a warning against the binary options broker. Based on what motives did the OSC issue the warning?
27 February, AtoZForex – The Canadian regulatory entity OSC has published a warning against TCM Investments Ltd. The firm is registered in Belize. TCM Investments Ltd offers the trading of binary options through OptionRally.
Is OptionRally allowed to operate in OSC’s territory?
One of the SpotOption’s biggest brands, OptionRally is an online binary options trading platform. OptionRally Financial Services Ltd. possess over the the Cyprus Securities and Exchange Commission (CySEC) license. The firm offers its services in EU through the website www.optionrally.eu. The headquarter of OptionRally is in 201 Zavos Kriel Court, 1 Griva Digeni Street, 3035, Limassol, Cyprus with CySEC license No. 220/13.
However, TCM Investment Ltd. owns the binary options brand. In turn, TCM Investment Ltd. holds the International Financial Services Commission (IFSC) of Belize. Considering that the OptionRally brand only has a CySEC license, the firm is only allowed to operate in all European countries. Therefore, it does not give the authority to the company to target Canadian clients.
Is OptionRally scam or reliable?
In the recent past, the Japanese regulator already added OptionRally in its warning list. Moreover, in October 2016, CySEC had imposed a fine of total €138,000 to OptionRally Financial Services Ltd. for noncompliance. Also, in August 2016, OptionRally laid off hundreds of employees after shutting down its customer service center in Israel. This move came by the financial institution following Cyprus regulator CySEC amendments regarding binary options.
Additionly, in October 2015 the Canadian Securities Administrator (CSA) blacklisted OptionRally for offering unauthorized services in Canada. The CSA is a statutory council that represents and coordinates the local regulatory bodies over 10 Canadian provinces and territories. Similarly, in September 2015, the Hong Kong SFC listed OptionRally in its warning list.
What care should investors take?
In Canada, the provincial regulatory bodies regulate their province financial markets and their jurisdiction may vary. The Ontario Securities Commission (OSC) is responsible for the financial markets in Ontario, which is the largest Canadian province by population. OSC maintains a searchable register. In order for investors and traders to check whether a given entity is registered to provide financial services in Ontario.
Investors are putting their investments at higher risk when engaging with unauthorized and non-regulated brokers. Moreover, it is strongly advised to only deal with regulated brokers, authorized and registered by reputable regulatory bodies. We have reached out to OptionRally, but we found them to be unresponsive.
What do you think is OptionRally scam or reliable? Let us know in the comments section below.