Service NL is offering a caution about two companies soliciting people in this province to trade in binary options. The companies in question are Porter Finance and Dalton Finance, both based in the UK.
The provincial government says no company is registered to trade in binary options in any jurisdiction in Canada.
Binary options are wagers as to whether the value of an asset will increase or decrease within a specific period of time. Investors are asked to bet on the performance of a currency, commodity, market index or stock within a short period of time, sometimes as little as a few minutes. The company then tells the investor whether they've received a payout or lost their investment. Payouts are often virtual, meaning that the gains shown are held in an account owned by the company. Investors then learn that their "gains" are inaccessible and the accounts do not exist.
People contacted by anyone purporting to represent a company trading in binary options are advised not to send any money or provide access to personal information including credit cards, drivers licences or passport information. If you have been contacted notify Service NL or call the Financing Services Regulation Division.