Forex Scam Watch – OSC Warning against Prosper Trade FX

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Ontario Securities Commission (OSC) warning

The Ontario Securities Commission (OSC) is one of the financial market regulators in Canada, where the markets are regulated at the provincial and not the national level, which takes the issue of protecting investors and safeguarding their rights very seriously.

Within this framework it maintains and regularly updates a Warning List, which contains individuals and companies that appear to be engaging in activities that may pose a risk to investors. The Ontario watchdog consequently urges investors to be cautious about these individuals and companies.

The most recent addition to this Warning List was made on 19 January and it warns against a company called Prosper Trade FX. Through the warning, OSC says that although it cites an Ontario based address, the said company “ is not registered in Ontario, Canada to engage in the business of (i) trading in securities or (ii) advising anyone with respect to investing in, buying or selling securities.”

Following the publication of this announcement, the homepage of Prosper Trade FX (http://www.prospertradefx.com/home/), appears to be down and reads the following message: “We apologize for the inconvenience – We’ll be back soon”. However, a closer look reveals that the rest of the site is still up and running and snooping around one can find out that Prosper Trade FX claims that its advantage is the fact that it has a partnership with regulated Australian Brokerage Pepperstone, urging its visitors to create an account with this brokerage.

This smells like some kind of scam scheme and it is also reminded that according to Canadian law all firms providing financial services must registered and get licensed by the regulator in the Canadian province that they want to operate in and whose residents they wish to target as clients and that trading though off-shore brokers is not allowed.

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