The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) is warning the public of an online trading platform they say has obtained funds from at least one resident in the province.
The platform Gold TradeFX, which has a United Kingdom address listed on its website, says it gives residents an opportunity to invest and trade in cryptocurrency and contract for differences.
But it is not registered to sell or trade securities or derivatives in Saskatchewan.
"If an online platform is not registered, they are not a safe choice for Saskatchewan residents - it's as simple as that," Executive Director of the Securities Division with the FCAA Dean Murrison said. "Always do your due diligence by checking if an entity is registered with the FCAA, and whenever possible ask your financial adviser to evaluate every investment opportunity you are considering."
The FCAA says you're liable to lose your money if you send money to companies that aren't registered in the province, as they may not be legitimate businesses.
The Securities Act, 1988 mandates individuals and companies to register with the FCAA to trade or sell securities or derivatives.
The FCAA suggests using the following tips to protect yourself:
- Always verify that the person or company is registered to sell or advise about securities or derivatives. To check registration, visit The Canadian Securities Administrations' National Registration Search.
- Know exactly what you are investing in. Make sure you understand how the investment, product, or service works.
- Get a second opinion and seek professional advice about the investment.