Securities regulators in Quebec are warning investors about firms offering derivatives trading software that promises to generate substantial returns, or even guarantees their investment.
The Autorité des marchés financiers is cautioning investors about solicitations from foreign companies offering access to software and investment systems in the derivatives market. Generally, these firms offer access to software, or an investment system, for a few hundred, or even thousands, of dollars, while promising very attractive returns, the AMF says.
In some cases, these companies will to promise to reimburse investors if they don’t generate profits, it notes. But, when investors attempt to recover their investment, they are told their file is undergoing analysis or given other sorts of excuses. And, in most cases, investors are not able to recover their funds, it says.
The AMF reports that one investor recently lost his investment using software from a company called CTI Group, and trading through an unregistered company, Foremost Trading LLC, that acts as a dealer for investors to negotiate futures and forward contracts. “Since Foremost Trading LLC is not registered with the AMF, its activities on behalf of Quebec investors may violate the laws administered by the AMF,” it says. No allegations have been proven against these firms.