Some binary options websites were using UK’s companies in order to process credit card transactions and bank transfers.

According to the latest publication (please find attached), Metro Options Limited who provided services to was shut down by the UK’s Insolvency Service.

The website and Metro Options Limited, by its sales representatives, offered the opportunity to conduct binary options trading. The website made various investment return claims, none of which were founded, including:

  • profits of £400 per £500 trade were achievable
  • Metro Options Limited would match customer deposits and that a bonus scheme existed
  • trading insurances of between 50% and 100% would be provided
  • Metro Options Limited had more than 600 retail clients
  • Metro Options Limited was awaiting a licence renewal from the Cyprus Securities and Exchange Commission
  • Metro Options Limited operated a one-off refund policy for losses incurred in a 90 day period

Those customers who contacted the police, via Action Fraud, complained that they were unable to obtain any refunds of deposits or supposed investment returns, and that the company effectively ceased to communicate with them after requests for refunds or investment returns were made. Those parties reported losses of £350,000.

Metro Options Limited also falsely claimed to have had an established trading presence at its Canary Wharf registered office, at 5 Harbour Exchange Square, London, E14 9GE. In fact the company had never had any registered office presence at that location.

Metro Options Limited director, Mr. Miklos Attila, could not be traced by the investigators.

Conclusion, it is advisable not to invest via unregulated entities or regulated entities from unfamiliar jurisdiction (UK, US, Australia, Germany, France etc = familiar jurisdictions). However, if you decide otherwise, in order to avoid sad-ending, you should preform some Know Your Broker checks. You should, at least and not limited, ask the sale representative to send you his/her passport copy and utility bill in English, and/or, get a signed letter from the Company’s director + the Company documents (you should know who are the company’s owners and directors) + the director and owners passport copies + utility bills in English. The letter should state that the director and the owners will be held accountable if misleading information will be provided.