The British Columbia Securities Commission (BCSC), one of the thirteen provincial financial regulators in Canada, has added forex and CFDs brokerage uTrader to its ever-growing Investment Caution List, according to a BCSC statement today.
The BCSC became aware of uTrader 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.
uTrader, operating online under the URL en.utrader.com, offers clients a range 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 licences held at any global jurisdictions either, which raises a red flag as far as investors are concerned.
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According to the BCSC’s statement, this firm is not registered to trade in or advise on securities or exchange contracts in BC and is one of many alerts issued by the watchdog which involve unauthorised soliciting or contact with retail investors in Canada by unlicensed brokers.
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.
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.