Regulators in New Brunswick are the latest provincial authority warning investors about the risks of binary options trading.

The province’s Financial and Consumer Services Commission (FCSC) issued an investor alert Thursday, warning investors about the binary options market. Regulators in Alberta, British Columbia and Quebec, among others, have previously cautioned investors about these sorts of trading opportunities, too.

In its alert, the FCSC reminds investors that they are not protected by securities laws when buying these kinds of options, and that any money they venture is at “significant risk”. It notes that binary options “are typically traded within extremely small time frames, which increase risk significantly”, and that wins and losses happen very quickly; that these instruments are often traded on risky foreign exchange markets; and, that many of these trading platforms operate from servers in the U.S. and overseas, which “makes it virtually impossible to get your money back.” It also warns against dealing with unregistered firms.

“New Brunswick residents should be extremely cautious if considering the purchase of binary options,” said Jake van der Laan, director of enforcement with the FCSC. “These securities are primarily offered by offshore firms that may not be registered with or regulated by FCSC.”

“Before making any purchases of these options, or any other investment, consider what you can and cannot afford to lose,” said van der Laan. “Be realistic in your expectations and verify all information before you part with your hard-earned money.”