On-line trading platforms - Updated list of unauthorized sites
Thursday, December 18, 2014
Montréal – The Autorité des marchés financiers (the “AMF”) is notifying Québec consumers that it recently identified five on-line trading platform websites that are not authorized to offer products and services in Québec: avatrade.com, avatrade.ca, ilq.com.vn, vaultoptions.com and sycamoreoptions.com. Quebeckers should therefore not trade via these websites.
Offering investment services or products, whether on the Internet, from an electronic platform or in person, is a regulated activity. Any person or company offering investments must be registered with the AMF. Furthermore, the AMF must approve any company that creates or markets derivatives and must authorize the marketing of those derivatives.
Unauthorized trading platforms are sometimes associated with fraudulent schemes. The consequences of these schemes can include denial of access to the accounts and assets of certain clients and even identity theft.
Below is the AMF's updated list of websites that are not authorized to offer investment products and services in Québec. The list is updated when new unauthorized sites are brought to its attention. Check our Investor Warnings section regularly to make sure you have the most up-to-date list. This list is not exhaustive; always check whether the person or company with whom you are considering investing is duly authorized.
Binary options – “All or nothing” options
Two of the five websites identified in this investor warning, vaultoptions.com and sycamoreoptions.com, offer binary options trading platforms. Binary options are a type of option where the investor faces two possible outcomes when his investment matures: either he receives a pre-determined cash payout (sometimes called the “premium”) or he loses his investment, hence the term “all or nothing” options. Binary options are often used to trade on the derivatives market, but also on the stock, bond, stock index and commodities markets. This type of option carries specific risks and is suitable only for certain investors.
Visit the AMF website for other advice on how to prevent fraud.
The Autorité des marchés financiers (the “AMF”) is the regulatory and oversight body for Québec’s financial sector.
– 30 –