Canadian securities regulator the British Columbia Securities Commission (BCSC) has added to its Investment Caution List offshore CFDs and Binary Options broker uTrader, operating from en.utrader.com.
uTrader claims to be an online Contracts For Difference (CFDs), Forex and options trading platform provider. Day Dream Investments Ltd., which claims to be located in the Republic of the Marshall Islands, owns the uTrader website and the uTrader trademark.
CFDs are a type of derivative security that allow traders to speculate on the price movements of an underlying asset. CFDs are considered to be securities under the securities legislation in Canada.
The BCSC recently became aware of the uTrader and that a Canadian resident was able to open a trading account with uTrader.
uTrader is not registered to trade in, or advise on, securities or exchange contracts in Canada.
BCSC has urged BC residents to exercise caution when dealing with firms that are not registered to trade or advise in BC.
The official BCSC warning against uTrader can be seen here.