Australian Regulator Declares Ban on Five Brokers

The Australian Securities and Investments Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term) has joined the war on binary options, and it does not seem to be slowing down. Just today ASIC added five more brokers to its national blacklist. The companies are: A.I.M Corporation Limited, Oproserv Limited (also known as 365BinaryOption), Pearson Investments, CFD Stocks, and Libor Capital.

The one size fits all reasoning that the Australian regulator gives on its website is that these companies might be running scam operations, and so they have not received licenses to trade with Australian clients. These brokers have also been found guilty of making unsolicited calls and sending out similar emails to locals regarding Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, financial consultation, loans, and credit without gaining the proper Australian Financial Services (AFS) license from ASIC.

Australia is following the lead of several other countries worldwide which have been waging war against binary options brokers due to numerous instances of traders falling victim to frauds, presented under the guise of easy money. Though Australia is placing more companies under ban as months go by, it still allows brokers to approach clients under certain restrictions.

Earlier this year, ASIC warned Australians of online trading scams in the form of emails which were likely to appear once the Christmas or tax seasons were about to arrive. Greg Medcraft, the Chairman of ASIC, has said that the organization’s focus in 2017 will include CFDs and forex companies because “..such products were traditionally targeted at inappropriate investors who were less likely to profit from dealing in the financial product.”

ASIC's battle is far from over.