The Ontario Securities Commission is warning investors to read the fine print before purchasing investment software.
The regulator says that some companies’ ads promise that investors will get rich quick, risk-free, without any previous investing experience. In reality, says the OSC, the only people guaranteed to make money are the salespeople pushing the software.
It reminds investors that not even experts can consistently predict what the market is going to do, and the software won’t either.
The regulator suggests investors read what’s in the fine print. It says the disclaimer text contains clear messages about what the software really does, and “often it’s a better prospect for investment tips than the software itself.
The OSC says investors should watch out for investment promotions that offer high returns and low risk. “If an investment has a high return, you are taking a large risk with your money,” it says.
The regulator also reminds potential buyers to recognize that investment software doesn’t take the place of advice from a licensed industry professional.