Canadian Regulator Cautions Warn Of Rogue Forex Brokers
The British Columbia Securities Commission (BCSC) has sent out a number of warnings in 2018 cautioning its residents about dealing with rogue bullion and forex brokers. There has been an increase in recent times in the number of Canadians who have turned to investing in bullion, crypto and forex markets as a way to increase their wealth.
This is one of the reasons why a number of financial firms and crypto start-ups have targeted the Canadian market. However, there are some firms that are not exactly on the up-and- up. This is where the BCSC comes in, warning potential investors about working with dubious firms.
One of the firms that the BCSC has recently blacklisted is that of Sterling and Ross Advisory S.A. (Sterling and Ross). According to Sterling and Ross, they specialize in Forex and commodity trading solutions for investors from all over the world. Recently, Sterling and Ross worked with a client in British Columbia (BC) and they instructed them to send money to a bank account in Costa Rica.
However, the problem is that Sterling and Ross is not registered in BC. This prevents the company from doing any trading on securities or even exchange contracts. They are not even allowed to give any advice on these matters. But Sterling and Ross has breached these rules and have offered their services to Canadian residents.
Investment Caution List Grows
Another company that has caught the eye of the BCSC is Truevalue Investment International Limited. Truevalue Investment operates right now from two websites: truevalueinvestsint.com and truevalueinvestmentint.com. The company and its websites have been added to the Investment Caution List as an unregulated offshore broker.
Truevalue claims that they can provide their customers with sophisticated trading solutions for bullion, forex, and commodities. These would be available to both private investors and those that represent large firms. Allegedly, Truevalue does this from offices in Abu Dhabi in the UAE and in London, England.
As proof that it is a legitimate broker, Truevalue claims that they are regulated by the Bank of England on their website. However, the Bank of England does not regulate brokers and it is the responsibility of the Financial Conduct Authority (FCA) to regulate brokers.
Truevalue Investment got noticed by the BCSC when they tried to solicit a Canadian resident to trade in securities. Currently, the company has no license nor is it registered to trade in securities in BC. This raised red flags and Truevalue was also added to the Investment Caution List.
The BCSC warns residents about dealing with firms that are not registered to trade in BC. This leaves them vulnerable to rogue traders and brokers who are more interested in stealing their investment than doing continued business.