A lot of interest has been generated by binary options investments opportunities in Newfoundland and Labrador. Many of the residents here do not want to be left out of the excitement and are taking advantage of the various offers and promotions being offered.The legality issue in this new form of trading does not arise because just like any other province in Canada, binary options trading are legal here. This then gives the residents the go ahead to sign up to a trading platform of their choice. However, this must be done with due diligence since this type of investment activity is not currently regulated and there are no clear policies and guidelines in operation.
Trading Binary Options in Newfoundland and Labrador
The fact that there is no regulating authority that oversees binary options here, makes it necessary for any potential investor to make sure that s/he only deals with a genuine broker. S/he should also be in a position to know where to seek redress in case of fraud. Investors who are looking for guidance and general information regarding the trade should visit the office of the Superintendent of Securities of Newfoundland and Labrador.
This office operates in line with the Securities Act and is part of the Newfoundland and Labrador government. The office, like any other provincial securities regulators in Canada, is mandated to protect consumers and regulate capital markets. Its primary concern is the welfare of investors and their security. It also issues advisories, scam alerts or any other sensitive information to investors by being up-to-date with the activities of brokers and other financial organizations.
The office also engages in consultancy services regarding trading practices of investors. Currently, it does not yet have the powers to regulate the binary options trading but it still handles matters relating to binary options on an advisory nature. Traders are therefore advised to take the necessary precautions to ensure the protection and security of their personal and financial information.
How do Brokers Store Credit Card information?
The most commonly used method of funds transfer by investors is the credit cards. The most popular credit cards like MasterCard, Visa and the American Express cards are accepted by brokers. The concern here is the security of the information on the cards.
Procedurally, most regulated brokers have solid systems of storing such information to protect them from leakage. They use the strong SSL encryption layer system which is also PCI DSS compliant. This is a set of strict guidelines to be followed regarding how credit card data information is to be stored. Compliant brokers undergo a series of tests and have to demonstrate that they have databases which are compartmentalized and insulated, where the cards’ information can be stored safely. No other staff is supposed to be privy to such information and only the last four digits are legible. Traders are therefore advised to only choose brokers who are compliant so that they can rest assured of the security of their sensitive information.