The Manitoba Securities Commission (MSC) has issued a warning to investors about solicitations to invest in foreign exchange contracts.
The regulator reports that it has learned of an investor who was cold called by a purported foreign exchange (forex) dealer located in Costa Rica, who was soliciting an investment. And, it warns that Accredited International/ Accredited FX is not registered to do business in the province.
“The MSC wants the public to be aware of the significant risks involved in foreign currency exchange 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 MSC.
“If an individual does decide to enter this market, they are advised to get expert advice from a registered professional,” he adds.
In particular, the MSC warns investors to avoid offers to trade forex that: promise minimal risk and high investment returns; involve unregistered dealers; lack disclosure; or come with high-pressure sales techniques to buy a forex contract, or to purchase software or take courses related to forex trading.