Canada BCSC Adds Two Unregulated Brokers to Investor Caution List

BCSC noted that a large portion of CFDs are illegally traded through unregulated online platforms.

The British Columbia Securities Commission (BCSC), one of the thirteen provincial financial regulators in Canada, has added Royal Downing Investments and Inter Global to its growing ‘Investment Caution List’, according to a BCSC statement.

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According to the Canadian provincial regulator, Royal Downing Investments solicited a British Columbia (BC) resident and the company opened a trading account for him, without being authorised to do so. The firm is based in the United Kingdom, and claims to offer trading across multiple markets including equities, options and futures. The BCSC has therefore urged investors to use caution when dealing with this brand.

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The Canadian watchdog has also updated its blacklist of companies that are illegally conducting financial services targeting provincial residents to add Inter Global operating as Fx-Inter, and doing business through its website http://www.fx-inter.com/. The firm is not registered in British Columbia to engage in the business of trading in securities or advising anyone with respect to investing in, buying or selling securities.

A brief review of the broker’s websites reveals that it offers trading facilities on a wide range of financial instruments, ranging from foreign exchange, forex options, to contracts for difference (CFDs) on stocks. ‎However, Fx-Inter didn’t claim a specific regulatory status in any jurisdiction.

Getting to back to the BCSC warning, after briefly explaining contracts for difference (CFDs) and certain risks and features with these types of products, the BCSC noted that a large portion of CFDs are 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.

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