The Canadian Securities Administrators (CSA) are warning Canadians about binary options scams and urging them to educate themselves on the risks and serious consequences of binary options. In Canada, the number of victims affected by this form of fraud is on the rise, and these 'get rich quick' schemes are dangerous.
Binary options take the form of a wager in which investors bet on the performance of an underlying asset, often a currency, stock index, or share, and the timeframe on this bet is typically very short, sometimes hours or even minutes. When the 'investment' period is up, the investor receives a predetermined payout or loses the entire amount.
The CSA wants Canadians to know that there are no registered individuals or firms permitted to trade these products in Canada.
To learn more about this type of scam, visit the Binary Options Fraud website.
See the CSA News releases From 2016:
Three Steps to Protect Yourself From Investment Fraud, March 4, 2016
If you hear the promise of high returns and no risk, it is a warning sign for investment fraud. Videos by the British Columbia Securities Commission's InvestRight. For more tips and tricks, visit their website.
You can also follow BCSC InvestRight on YouTube.
Know Yourself: Set your goals and understand your risk tolerance.
Choose Your Advisor and Check to see if they are registered.
More information on assessing your risk, how to check out an investment, how to spot a scam and more can be found on the below websites: