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Members are to note a recent warning from The Australian Securities and Investment Commission (ASIC), regarding unlicensed binary trading websites and online platforms.
This warning regards websites and online trading platforms that are frequently based outside of Australia, and do not have Australian regulations and licensing requirements, leaving consumers little recourse should a high risk binary options provider fail to fulfil their obligations.
Binary options are an extreme risk, speculative trading option. They are a form of online stock/share trading, in which consumers ‘bet’ on the price movements of particular assets or options (e.g. indexes, commodities, asset prices). Many binary options providers promise high returns for accurate speculations, but at the cost of extremely risky options. Whilst there are legitimate, ASIC approved, binary options providers operating within Australia, there have been a number of reported instances of unregistered overseas businesses taking money from consumers and disappearing once identified. In short, many overseas binary options providers are often a channel for financial scams.
In line with ASIC’s guidance, Firefighters Mutual Bank, Teachers Mutual Bank, and UniBank, will no longer be processing transactions to binary options trading platforms which are operating outside of Australia, or binary options providers which ASIC has noted as likely being fraudulent.
We encourage all members who may have an interest in binary options trading, to check any trading platform that promotes these binary options against ASIC’s current list of professional, regulated, traders and another list detailing unlicensed, unregulated, scam traders.
The bank recommends that all members seeking to investigate any form of investment trading first contact a professional, registered financial advisor, for further advice and support.
For further information look at the ASIC or Money Smart websites and search for ‘binary options’.