The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has issued a temporary cease trade order against a three companies that it says are running an unregistered online platform for trading binary options, contracts for difference and foreign exchange.
The FCAA issued the order against Trade12, Global Fin Services Ltd., and Exo Capital Markets Ltd.
Trade12 is holding itself as an international brokerage owned by U.K.-based Global Fin Services, which is itself a subsidiary of Exo Capital Markets, based in the Marshall Islands, the FCAA says in a news release.
None of the firms are registered to trade in securities or derivatives in Saskatchewan, the regulator notes, but Trade12 has solicited investors in the province by phone inviting them to open trading accounts.
“People should never give personal information or send money to businesses they do not know,” says Ed Rodonets, deputy director of enforcement at the FCAA, in a statement. “Before you conduct any business with a company make sure they are allowed to trade securities in Saskatchewan.”
Last year, the B.C. Securities Commission (BSCC) issued its own warning about the group of companies, saying that Trade12 solicited investors to trade forex, commodity and stock index futures online.