Another regulator warned investors against unregulated Binary Options platforms. Now, Singapore MAS issued a warning. How can investors protect their funds?
15 March, AtoZForex – The Monetary Authority of Singapore (MAS) has published a warning to investors’ community in Singapore in relation to the Binary Options firms with unregistered platforms.
Singapore MAS warns against unregulated Binary Options platforms
The warning notice from Singapore regulator emerges in the wake of the rise in the number of complaints from investors. The investors based in Singapore have been suffering financial losses while dealing with unregulated Binary Options platforms.
According to Singapore watchdog, unregulated platform providers usually use promotional techniques, which involve phrases like “trading with zero risk”, “trading amounts of as little as $1”, and “profit payout of 500% per trade.” Such catchphrases are utilized by the fraudsters in order to lure investors. The MAS has stated:
“Contrary to promises of low investment risks with exceptionally high returns, binary options are in fact speculative and risky investment instruments. There is a high chance of the investor losing his entire investment amount, whether the investor deals with a regulated or unregulated entity.”
How can investors protect themselves?
Additionally, a big part of these unregulated Binary Options platforms is considered to be fraudulent and based outside Singapore. The regulator warns that in case investors choose to deal with these platforms, they are unlikely to recover their funds if something goes wrong. The MAS has highlighted:
“Investors should know that if they choose to deal with unregulated entities, they will not
have access to avenues for dispute resolution should a dispute later arise.”
For protection purposes, MAS proposed to think carefully about the claims made by platforms about their products. The watchdog has stated:
“If the touted ease of making significant profits sounds too good to be true, it probably is. Always assess whether the investment offer is suitable for you, in light of your investment objectives and personal circumstances.”
Moreover, investors should check the reliability of entities offering the product. The MAS states that it is vital to check if the Binary Options firm possesses trading license. Additionally, investors should keep the track of the MAS Investor Alert list.
Think we missed something? Let us know in the comments section below.