Canadian regional financial services regulator The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has issued a warning against the well-known forex broker AvaTrade. Specifically, FCAA has announced that it launched a Temporary Cease Trade Order versus Ava Trade Limited.
The watchdog explained that AvaTrade is operating an unregistered online trading platform for trading forex and CFD under its jurisdiction.
FCAA states that AvaTrade is not a registered and regulated company to prodive trading services in Saskatchewan or other jurisdictions in Canada.
It appears that AvaTrade is the subject of several other warnings issued by regulators of other states in Canada such as Ontario, British Columbia and Quebec. Residents of Canada who have been contacted by AvaTrade are urged to contact FCAA by the regulator.
Announcement from the Directors of FCAA
An investor should always check to see if a company is registered to trade in the jurisdiction that the investor resides, before handing over their money. A company’s registration status can be checked by using the Canadian Securities Administrators’ National Registration Search database at www.aretheyregistered.ca. Just because a company claims to be registered in a foreign country, does not mean they are registered everywhere.
AvaTrade is a broker that I have traded with before and included in my list. This warning from FCAA is a serious stigma on the reliability of AvaTrade. I have updated the Company’s review and rating in paralell to FCAA’s alert.