Because of this complexity, fraudsters will build websites purporting to offer forex trading and training, and lure investors in with promises of high rates of returns with little or no risk; in reality, they’re simply stealing your money. Since they’re often unregistered dealers or brokers outside of Canada, it is very difficult, or even impossible, for victims to recover any losses or deal with a possible dispute.
How can you protect yourself?
- Fully understand the market and its unique characteristics. Don’t be pressured into making a quick decision to invest.
- Take some time to do your research to validate if Forex trading is right for you and your investment goals.
- Limit the money committed to Forex trading to only the amount you can afford to lose entirely.
- Be aware that the use of leverage (e.g. remortgaging your home, borrowing money) or other strategies may result in losses greater than the amount of your initial investment. You should carefully consider your own financial situation and consult a registered financial adviser knowledgeable in Forex trading.
- Thoroughly investigate any firm offering to trade Forex for you and check its registration to avoid using unregistered Forex dealers or brokers. (no matter how legitimate its website or trading platforms may appear).
Think you have been offered or involved in a Forex investment scam?
If you think you or someone you know has been approached with what looks like an investment scam, we are here to help. You can report any suspicious investment opportunity by contacting our Public Information and Inquiries office toll-free: 1-877-355-4488 or firstname.lastname@example.org.
To report a suspicious investment, visit the ASC Enforcement Complaints System.