Brokers scam alert: Japanese regulator issues new warning

0
23 views
Japan’s Financial Services Agency the (FSA) warning

The constant growth of the online retail forex and binary options trading industries brings with it a corresponding growth in the numbers of unregulated brokers which spring up like mushrooms. It should be noted here that even if a broker is regulated in one jurisdiction, this does not mean that they are allowed to solicit traders from all countries, since each jurisdiction has in place different rules for those wishing to offer services to their residents, meaning that brokers need to licensed in all the countries they wish to operate (except of course in the case of the EU where a license in one member state, allows operating in the entire Union).

Due to the fact that clone companies and unregulated brokers or firms that are registered in obscure offshore territories may be posing substantial risks for traders, especially the less experienced ones, regulators across the globe try to remain vigilant and alert consumers about such firms in order to help them protect their rights and avoid being victimized.

Within this framework, Japan’s Financial Services Agency (FSA) has just updated the lists of online trading companies that are found to target Japanese investors while lacking the necessary authorization to do so. More specifically, these latest additions to the FSA’s Warning List include one Forex broker and two binary options brokers, as follows:

Max Trading (Commercial) Limited, which is a Forex broker, claiming to be located in British Anguilla. The company offers its services under the DynamicTrade brand, with its website being available in Japanese, thus one can conclude that they are targeting Japanese clients.

STDF Services LTD, which is a binary options broker, also known as OPTIONS XO. Claiming to be based in Herfordshire, England, this entity also offers a Japanese version of its website

Ssbinary, which is another binary options broker, of an unknown address, wand whose site also has a Japanese version, meaning it is soliciting Japanese investors.

The FSA entered all three entities to their Warning List since they are all offering derivatives trading services to Japanese investors without having the necessary license and registration to do by the pertinent Japanese regulators.

NO COMMENTS

LEAVE A REPLY