The British Columbia Securities Commission (BCSC), one of the thirteen provincial financial regulators in Canada, has added forex and CFDs brokerage ForexGrand to its ever-growing Investment Caution List, according to a BCSC statement today.
The BCSC became aware of ForexGrand after finding that the firm had solicited a British Columbia (BC) resident and opened a trading account for him, without authorisation. The BCSC has therefore urged investors to use caution when dealing with this brand.
ForexGrand, operating online under the URL ForexGrand.com, offers clients a range of financial services through a contracts for difference (CFDs), forex and options trading platform. A glance at the website in question also reveals that the brokerage provides no confirmation regarding licenses held in any jurisdictions either, which raises a red flag as far as investors are concerned.
According to the BCSC’s statement, this firm is not registered to trade in or advise on securities or exchange contracts in British Columbia.
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After briefly explaining certain risks related to derivatives products, the provincial authority noted that while some trading activities are regulated, these represent only a portion of the market, while a large portion is illegally traded through unregulated online platforms.
According to the information on its website, the brand is operated by Nordic Pearl Limited – a company headquartered in Bulgaria but not regulated by Bulgaria’s Financial Supervision Commission (FSC). Such lack of clarity and transparency in a broker immediately reduces its level of credibility.
Canada has been battling against online trading firms for a while now, and has added several brokers to its list as weeks go by. In early May this year, the BCSC banned Icon Markets Limited, which owns the brand Hedgestone Group. The brand, which offers CFDs and binary options trading, now says on its website that it does not accept Canadian and South African clients.
The BCSC is the independent provincial government agency responsible for regulating securities trading in British Columbia through the administration of the Securities Act. The regulator website provides information, tools and resources for investors, including investor warnings about individuals and companies that appear to be engaging in unauthorized activities.