The binary options bug has caught the residents of New Brunswick, a small province in the eastern part of Canada. Most investors in New Brunswick are excited at this new trading opportunity which offers them a chance for short-term investments that translates into quick profits. The prospects of investing in minimum deposits, short term trades, and requirements to participate by using small increments of money, has attracted quite a number of residents to the binary options investment alternative.
Like the rest of the country, trading in binary options is legal in New Brunswick but the problem lies with its regulation. This sector is currently not regulated and lacks clear policies to control the trade. This state of affairs is subjecting the local investors to regulations which are under the control of other jurisdictions that are outside the country.
The main reason is that most brokers trading in binary options operate under the regulations of the countries in which they were registered. However, brokers that are registered with organizations like CySEC operate legal businesses. With no regulation, the risk of unlicensed brokers operating as genuine entities is real. They may try to woo unknowing traders into their platforms and this increases the chances of fraudulent activities that local traders should be aware of.
Trading in Binary Options in New Brunswick
Although there are no agencies that are mandated by law to oversee binary options trading in New Brunswick, guidance and assistance can be accorded to traders engaging in this investment activity. The Financial and Consumer Services Commission (FCNB) is a self-funded organization that was established by the provincial government in mid-2013 to oversee the compliance of securities organizations within the province.
It is a service regulator that is mandated by law to tackle all matters pertaining to provincial legislation with regards to securities, trusts and loan companies among others. Its main objective is to help consumers on matters relating to their financial concerns and ensure that their rights are protected. It also aims at instilling and reinforcing public confidence across financial markets. Being the sole authority that regulates the financial marketplace, and also one that provides education services, it is best placed to address the concerns of the binary options traders.
Gambling and Binary Options
Many people look at how the binary options trade operates and equate it to gambling. They argue that binary options traders depend on luck by guessing on the outcome of their investments the same way gamblers do. On the contrary, binary options trading is not gambling because unlike gambling, any money acquired through this trade is not a winning but an earning which does not depend on luck.
Serious traders, in most cases, engage in extensive research and use a certain amount of skills to make investment choices. Investors do not depend on luck as they take calculated risks which are based on various sources of information. Sometimes luck plays a part on the outcomes of those decisions but it is never the intention of any investor to depend on it. His/her actions are purely based on available information that influences his/her investment decisions.