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Singapore's regulator warns of dangers of unregulated binary options brokers

Singapore's financial services regulator, the Monetary Authority of Singapore (MAS) has published an advisory warning the investors of the dangers of trading with unregulated binary options brokers and platforms. 

 
According to MAS, the document comes in the wake of a rising number of complaints from investors who have suffered financial losses from such investments.
 
The regulator explicitly points out that binary options are “speculative and risky investment instruments” and that there is “a high chance of the investor losing his entire investment amount” no matter if the investor deals with a regulated on unregulated binary options platform. 
 
Further, MAS warns, the unregulated brokers often promise zero trading risk,  “trading amounts of as little as $1”, and “profit payout of 500% per trade” in order to attract investors. The regulator also notes that the unregulated binary options brokers and platforms are fraudulent and based outside Singapore and clients are very unlikely to recover their losses. “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”, MAS said.
 
In conclusion the Singapore regulator advises investors to consider carefully any claims about the products offered 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 MAS, which is also in charge of forex brokers operating in Singapore, in the Financial Institutions Directory and the Alert list of the watchdog.
 
 
TAGS: singapore  mas  warning  binary options  unregulated  risk  fraud 

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