The Canadian Securities Administrators Thursday issued an investor watch to make investors aware of the significant risks involved in foreign currency exchange investments. Investors who trade Forex are also warned against dealing with unregistered firms offering Forex trading.

The investor watch was created after CSA staff identified an increase in unregistered foreign exchange trading services being offered to Canadian investors, by both Canadian and foreign firms.

“Forex trading can be complex, volatile and extremely risky. It should only be entered into if investors are aware of the risks and prepared to lose their investment,” says Bill Rice, chairman of the CSA and chairman and CEO of the Alberta Securities Commission. “If they do enter this market, investors are advised to get expert advice from a registered professional before participating in Forex trading or purchasing a Forex-related investment.”

To improve public understanding of foreign exchange trading, the CSA have published a detailed document describing Forex and the various risks associated with this type of investment. It has also created a Forex resource page on its website.

The investor watch is published on the new Investor Alert Page and is the first major one issued by the CSA since the launch of this resource on its website.