The Nova Scotia Securities Commission (NSSC), one of the thirteen provincial financial regulators in Canada, has added the forex firm HQBroker to its ever-growing Investment Caution List, according to an NSSC statement today.
HQBroker, doing business through its website https://www.hqbroker.com, offers clients a range of financial services which includes seminars about forex, social trading, as well as unrealistic payouts are associated with its affiliate programs, which compensate clients for attracting new traders.
Last month, Ukrainian police arrested principals of HQBroker for operating an online trading scam across the Eastern European country. According to a police report, the scheme has been orchestrated by a 34-year old Ukraine who also operated the brand “Trade12” through offices in Kyiv, Kharkiv, Dnipro, Zaporozhye, Mariupol and in the Dnipropetrovsk region
Getting back to the warning, the Nova Scotian watchdog said this firm is not registered to trade in or advise on securities or exchange contracts in the province and is one of many alerts issued by the watchdog which involve unauthorized soliciting or contact with retail investors in Canada by unlicensed brokers.
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A dangerous place to shop for investments
HQ Broker was also flagged for cold calling Nova Scotia residents offering to establish derivate trading accounts, in a manner that bears the hallmarks of an overseas broker scam, the regulator said.
After briefly explaining certain risks related to derivatives products, the provincial authority noted that online advertising services are a dangerous place to shop for investments and recommends exercising extreme caution when dealing with firms that are not registered in Nova Scotia.
The NSSC is the independent provincial government agency responsible for regulating securities trading in Nova Scotia 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.
To fulfill its mandate, NSSC also works in close co-operation with the securities regulatory authorities across Canada through the Canadian Securities Administrators (CSA). The CSA is the umbrella organization for the 13 securities regulators of Canada’s provinces and territories that work together to coordinate and harmonize the regulation of Canada’s capital markets.