Canada’s British Columbia Securities Commission (BCSC) today issued an investor alert warning residents of the province to exercise “extreme caution” when considering whether to invest with FX and CFDs brokerage firm Broker Official.
Most warnings of this type involve unauthorized advertising to or contact with retail investors in Canada by unlicensed brokers, and this one is no different.
Although Broker Official is not registered to trade in securities or exchange contracts in BC or anywhere else in Canada, the BCSC became aware that a British Columbia resident had been solicited by a representative of this broker, and was able to open and fund a trading account.
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According to the provincial watchdog, Broker Official claims to be based in London, England. The BCSC alert further states that while some companies follow through on their regulatory requirements, some do not, and that some companies are purely scams for speculative trading.
The BCSC maintains an investment caution list to alert investors of unregistered securities activity and unqualified investments promoted in British Columbia and encourages the public to report these kinds of activities to the respective regulators.
In issuing this alert, the BCSC joins other regulators around the world that have rung alarm bells about unregulated FX and CFDs brokers in an effort to encourage investors to carefully scrutinize investment products.
On the cryptocurrency front, the Canadian watchdog has voiced increased concerns about bad actors and high-risk investments in the virtual assets space. The BCSC also responded with increased efforts to educate investors about the potential dangers of cryptocurrency investments.