MSC issues an Investor Alert on Accredited International / Accredited FX
The Manitoba Securities Commission (MSC) is warning Manitobans to exercise caution if approached to invest in foreign currency exchange (Forex/FX) contracts. The Commission has been made aware of a Manitoba resident who has received a cold call from a purported Forex dealer located in Costa Rica soliciting an investment. The MSC warns that Accredited International/ Accredited FX is not registered to do business in Manitoba.
“The MSC wants the public to be aware of the significant risks involved in foreign currency exchange (Forex/FX) investments. The trading of Forex contracts is highly speculative and should not be done without extensive knowledge of the Forex market,” said Len Terlinski, Investigator with the Commission. If an individual does decide to enter this market, they are advised to get expert advice from a registered professional.”
March is Fraud Prevention Month in Canada. The MSC offers the following tips on how to protect against becoming a victim of investment fraud:
- Check the registration status of the individual or firm http://www.securities-administrators.ca/nrs/nrsearch.aspx?id=850
- Do not send money to someone you only know from an unsolicited phone call
- Do not give out personal information
- Research the investment
- Report suspected scams
If you have received unsolicited phone calls about investment opportunities please contact the Manitoba Securities Commission at (204) 945-2548 or toll free at 1-800-655-5244 and ask to speak to an investigator. The Manitoba Securities Commission is an independent agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.
Investors should be aware of the potential for fraud and avoid offers to trade Forex associated with any of these characteristics:
- a guarantee of little or no risk and high investment returns;
- dealers or brokers that are not registered with the provincial or territorial securities commissions, and typically are based outside of Canada where it can be difficult or impossible to protect or retrieve funds;
- an unwillingness to discuss the past performance or track record of the specialist traders who will purportedly handle their money;
- an unwillingness to identify specialist traders or traders located in offshore jurisdictions who will purportedly handle their money; and/ or
- high-pressure sales techniques to buy a Forex contract, to purchase software or take courses related to Forex trading.
Additional information on Forex trading can be found on the Canadian Securities Administrators website http://www.securities-administrators.ca/investortools.aspx?id=1041&terms=FOREX