Continuing its string of warnings against forex and binary options brokers targeting traders in Canada, Canadian securities regulator the British Columbia Securities Commission (BCSC) has issued a warning to investors regarding XForex / XTrade (at website xforex.com).
XForex.com was recently integrated by parent company XFR Financial Ltd into sister brand XTrade.com, alongside a major marketing campaign which saw XTrade sponsor popular Portuguese football star Cristiano Ronaldo.
According to the BCSC, XForex claims to be a contracts for difference (CFDs) broker based in Cyprus.
The BCSC became aware that a British Columbia resident was solicited by a representative of XForex and was able to open a trading account with XForex.
Although XFR Financial Ltd is registered with the Cyprus Securities and Exchange Commission (CySEC), the company and its brands are not registered to trade in, or advise on, securities or exchange contracts in Canada.
XTrade recently was the subject of an intervention by Australia financial regulator ASIC, following which XTrade’s Australian subsidiary XTrade.au Pty Ltd implemented changes to the way it handles client money.
The BCSC warning against XForex / XTrade can be seen here.