The Autorité des marchés financiers is warning investors about dealing with a couple of unregistered companies that are apparently offering foreign exchange trading.
The AMF says that Markets.com and Bforex Ltd. are not authorized to carry on activities in Quebec, but that the companies have recently solicited Quebeckers to invest in the currency market. The regulator notes that, as these companies are not registered with the AMF, the solicitations they make to Quebec investors may violate the law, specifically the Derivatives Act.
Although, the regulator hasn’t made any formal allegations and nothing has been proven, the AMF notes that it already issued a warning, back in October 2010, regarding solicitations made through four websites related to a company called Safecap Investments Limited, which it says is the same firm that owns Markets.com. It notes that neither SafeCap nor Markets.com, which is an investment firm based in Cyprus, is registered with the AMF.
Bforex is incorporated in the British Virgin Islands, and it is not registered with the AMF and therefore cannot solicit investors in Quebec either, the AMF says.
“The currency market is complex and volatile. It is intended for investors who have the knowledge, time and resources necessary to monitor market fluctuations. Investors who do not have the knowledge and time needed to trade in this market could incur significant losses,” the AMF warns.
And, it also reminds investors about the importance of being vigilant before investing their savings generally, regardless of the location of the companies and individuals offering the investments. Investors should ensure that the companies and individuals offering to act for them are properly registered.