Nova Scotian loses money after investing with online trading platform

The Nova Scotia Securities Commission has issued an investor alert for Stanford FX, an online trading platform and brokerage in the U.K.

HALIFAXtoday\Chris Stoodley

At least one Nova Scotian has lost money after investing with an online trading platform and brokerage that’s based — but not authorized — in the United Kingdom.

The Nova Scotia Securities Commission (NSSC) has issued an investor alert for Stanford FX, which isn’t registered to trade in securities or derivatives in the province.

“Stanford FX claims to be an online trading platform and brokerage operating out of London, England,” a NSSC news release says. “It also claims to be registered by the Financial Conduct Authority in the United Kingdom. A recent warning notice issued by the Financial Conduct Authority confirms Stanford FX is not registered or authorized there.”

The Nova Scotian who lost money first opened an account with Stanford FX; their account showed that their investment was making profits and Stanford FX representatives urged them to invest more money for greater returns.

However, multiple requests from the Nova Scotian to withdraw funds from the account were ignored.

The NSSC urges people to take “extreme caution” when dealing with firms that aren’t registered in Nova Scotia.

It’s illegal to solicit investments in Nova Scotia without registering with the commission and complying with Nova Scotia securities laws unless an exemption applies.

Anyone who’s contacted by Stanford FX or approached with an investment opportunity that appears fraudulent should contact the NSSC.

People can use the Canadian Securities Administrators’ website to check if a company or person is registered.

The U.K.’s Financial Conduct Authority issued a warning on the unauthorized firm on July 17.

“The internet can be a dangerous place to shop for investments but can also assist in identifying scams. In addition to verifying registration, always take the time to search the entity and its representatives,” Stephanie Atkinson, the NSSC’s director of enforcement, says in the release. “A simple Google search often provides a wealth of information about an entity’s legitimacy or lack thereof including alerts and warnings, complaints, reviews and other information to caution investors and assist in making informed investment decisions.”