Continuing a string of warnings against Forex and binary options brokers, targeting traders in Portugal, Comissão do Mercado de Valores Mobillários (CMVM) has cautioned investors regarding First Financial Banc, Invcenter and RB Options.
The regulator explicitly points out that these firms are promoting speculative and risky trading products and that they could lose their entire investment.
The CMVM typically blacklists unlicensed platforms engaged in activities that may pose a risk to investors in its jurisdiction, which are apparently targeting Portuguese traders.
Portugal’s watchdog confirmed that registration under the local laws is required in principle, even for overseas operators offering financial instruments for residents, or making transactions on their behalf as counterparties.
Some of the brands flagged today by Portugal’s securities watchdog had previously received similar warnings earlier from other regulators. This includes Zulutoys Limited and its subsidiary RBOptions, a binary options broker domiciled in Canada but not authorised to render financial services in Portugal.
RBOptions is a Canadian broker with a history of raising the hackles of financial regulators. Three Canadian provincial watchdogs have warned against the binary broker in the last few years, including the British Columbia Securities Commission (BCSC) and Ontario Securities Commission’s (OCS). Saskatchewan’s regulator also followed other provincial authorities and warned about the brand.
Inherent Risks in Trading with Unlicensed Entities
According to the broker’s website, RBOptions is owned by Zulutoys Limited in the Marshall Islands, and the Clearing services with respect to the website and the company are provided by RB Secured Processing LTD, a UK company located at NWMS Center, 31 Southampton Row, London WC1B 5HJ.
Apparently, they eventually changed their headquarters address to the Marshall Islands after Canadian regulators cracked down, but who can confirm? Virtual office addresses can be bought over the internet everywhere.
RBOptions attracted the attention of many Canadian authorities after the company proudly released a press release stating that it is the only binary options brokerage operating from within Canada, although it does not claim on its website that it is regulated.
In conclusion, the Portugal regulator advises investors to consider any claims about the products offered carefully, and if it sounds too good to be true, then it probably is a fraud. Investors should also check whether the brokerage or platform are regulated by CMVM, which is also in charge of forex brokers operating in Portugal.
