The British Columbia Securities Commission (BCSC), one of the thirteen provincial financial regulators in Canada, has added forex brokerage Stoxmarket to its growing ‘Investment Caution List’, according to a BCSC statement.
Solicited Services Without A Licence
The BCSC became aware of StoxMarket after finding out that a British Columbia resident was able to open a trading account with the brokerage.
StoxMarket is owned and operated by Marketier Holdings Ltd and claims to be based in the Commonwealth of Dominica, with further UK addresses listed on its website. The company offers an online forex and contracts for difference (CFDs) trading platform, allowing traders to speculate on the price movements of an underlying asset.
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CFDs are considered to be securities under the securities legislation in British Columbia. However, the brokerage is not registered to trade in or advise on securities or exchange contracts in the province. A glance at the website in question also reveals that the brokerage provides no confirmation regarding licences held by any of the other leading global jurisdictions either, which raises a red flag as far as investors are concerned.
The warning is one of many alerts issued by the BCSC which involve unauthorised soliciting or contact with retail investors in Canada by unlicensed brokers, and follows the recent addition of two binary options brokers who unlawfully solicited their services in a similar manner, as reported by Finance Magnates earlier this month.
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 unauthorised activities.
In parallel to today’s warning against StoxMarket, the BCSC has reminded BC residents to exercise caution when dealing with firms that are not registered to trade or advise in BC.