The Ontario Securities Commission (OSC) has included forex broker Prosper Trade FX to its warning list of companies that are not authorized to operate in Ontario, a notice published on Tuesday on the regulator’s website indicated.
The broker has been added to OSC’s warning list since it is not registered in Ontario and is not allowed to offer trading in securities or to advertise such services to local citizens.
The OSC keeps a warning list with companies that appear to be engaging in activities that may pose a risk to Ontarian investors. The list consists of 196 companies and individuals as of today.
The regulator’s inclusion of a company to the warning list doesn’t necessarily mean the OSC has made a finding on them. The commission adds to the list entities that it considers are not registered in Ontario, but nevertheless are selling securities or offering investment advice to local citizens, or claiming to sell securities or offer investment advice from Ontario. Another scenario where companies are entered into the OSC’s Warning List is when they offer securities without a prospectus, as the laws require.
Earlier this month, the regulator warned about another unauthorized forex broker, Bristol Offshore.
The OSC is a regulatory body, and as such it makes rules, monitors market participants for compliance with the rules, and investigates possible law breaches, and if it finds a company in breach, the regulator can impose sanctions and bring it to court.
Ontario-based Prosper Trade FX is a spot forex trading service provider. The broker has no information on its website regarding regulation or licensing. Moreover, most of its web pages have no content. It claims, however, to be a partner and an introducing broker of Pepperstone, a forex brokerage regulated by the Australian Securities & Investments Commission (ASIC).
We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySec, FCA, and CFTC/NFA, among others.