Investor Warnings

Saint John - The Canadian Securities Administrators (CSA) today issued an investor watch to make investors aware of the significant risks involved in foreign currency exchange (Forex/FX) investments. Investors who trade Forex are also warned against dealing with unregistered firms offering Forex trading.

The investor watch was created after CSA staff identified an increase in unregistered foreign exchange trading services being offered to Canadian investors, by both Canadian and foreign firms.

"Forex trading can be complex, volatile and extremely risky. It should only be entered into if investors are aware of the risks and prepared to lose their investment," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "If they do enter this market, investors are advised to get expert advice from a registered professional before participating in Forex trading or purchasing a Forex-related investment."

Use the National Registration Search This link will open in a new window or check with your local securities regulator to find out if an individual or firm is registered in your province or territory.

To improve public understanding of foreign exchange trading, the CSA have published a detailed document This link will open in a new window describing Forex and the various risks associated with this type of investment. It has also created a Forex resource page This link will open in a new window on its website.

Investors should be aware of the potential for fraud and avoid offers to trade Forex associated with any of these characteristics:

  • a guarantee of little or no risk and high investment returns;
  • dealers or brokers that are not registered with the provincial or territorial securities commissions, and typically are based outside of Canada where it can be difficult or impossible to protect or retrieve funds;
  • an unwillingness to discuss the past performance or track record of the specialist traders who will purportedly handle their money;
  • an unwillingness to identify specialist traders or traders located in offshore jurisdictions who will purportedly handle their money; and/ or
  • high-pressure sales techniques to buy a Forex investment, to purchase software or take courses related to Forex trading.

 

This investor watch is published on the new Investor Alert Page and is the first major one issued by the CSA since the launch of this resource on its website. This centralized location of investor alerts is designed to aid the public in identifying potential threats related to investing.

The Investor Alerts This link will open in a new window list is available on the CSA website This link will open in a new window.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

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For more information:

CSA member name

Point of contact

Phone number

Alberta Securities Commission

Mark Dickey

403-297-4481

Autorité des marchés financiers

Sylvain Théberge

514-940-2176

British Columbia Securities Commission

Richard Gilhooney

604-899-6577

Financial Services Regulation Div. Newfoundland and Labrador

Kimberly Ryan

709-729-2602

Manitoba Securities Commission

Ainsley Cunningham

204-945-4733

New Brunswick Securities Commission

Wendy Connors-Beckett

506-643-7745

Northwest Territories Securities Office

Donn MacDougall

867-920-8984

Nova Scotia Securities Commission

Shirley Lee

902-424-5441

Nunavut Securities Office

Louis Arki

867-975-6587

Ontario Securities Commission

Carolyn Shaw-Rimmington

416-593-2361

PEI Securities Office, Office of the Attorney General

Janice Callbeck

902-368-6288

Saskatchewan Financial Services Commission

Jennifer Anderson

306-798-4160

Yukon Securities Registry

Helena Hrubesova

867-667-5466