The AMF or Autorité des marchés financiers is the body responsible for regulating operators and products that transit the French financial markets. It is responsible not only for the regulation of authorisations, but also for supervision and control. If necessary, it can conduct the investigation and impose sanctions. In addition, it ensures that investors can be well informed and, depending on the case, take charge of accompanying them. In its information role, the AMF warns in particular against the usurpation of authorisations observed on certain binary option platforms which, in reality, are not regulated..
Fraudulent binary option brokers
Today, trading in binary options and the foreign exchange market (Forex) is becoming increasingly popular. As a result, interested traders should be very careful, as there is an increase in dishonest and fraudulent acts. In particular, the AMF warns against binary option brokers who usurp the authorisations of other duly regulated brokers to also appear “regulated”.
It should be noted that these unscrupulous operators steal not only names and logos, but also legal information such as the licence number or the approval number issued by a regulatory body. The public is then misled and risks losing money by registering on these dishonest platforms.
The usurpation of authorization has become a common practice among scammers. It is mainly operators regulated by the FCA, the British regulatory body, that pay the price. The usurpers steal almost everything from them: name, logo, license… Then they create a platform that looks “normal” and legal. On the surface, it is a trustworthy interface. Internet users are quite easily misled, especially since it is very difficult to distinguish between the true and the false.
Faced with these dangerous practices, which expose Internet users to relatively large losses of money, the AMF is sounding the alarm. The French regulator also stressed that trading in binary options and Forex remains a risky practice for individuals. First, there are the many operators who operate without the necessary authorisations and/or use incorrect or stolen information.
In addition, it should also be noted that even when dealing with a regulated broker, there is still a risk of losing money. Finally, in the event of a dispute, it is very difficult to obtain compensation. In any case, traders should be cautious, not only in choosing the broker with whom they will deal, but also in their investments.