Ontario’s state regulator the Ontario Securities Comission has released a warning regarding YouTradeFX. The regulator which regulates and oversees financial service provision has found the firm to be marketing its products and services to residents Ontario, in breach of Canadian regulatory law.
The warning which can be found on the regulators site states:
‘YoutradeFX solicits investors to open trading accounts to conduct electronic transactions on foreign exchange markets (Forex) and invest in certificates for difference (CFD), in particular on precious metals, indexes, commodities and stocks. These companies are not registered to sell derivative products in Ontario and are purported to be located in the United Kingdom and Mauritius respectively.’
Canada has a growing retail FX market with a number of established brokerages seeking to become regulated in the country to tap into the growing market. With Gain Capital (aka Forex.com) becoming the most recent firm to gain authorisation to offer margin FX services to Canadian citizens. Canadian regulators have adopted a proactive approach and have sought to clamp down on firms soliciting residents of the country.
YouTradeFX operates under several different brand names with the firm operating a regulated Australian entity as well as offshore entity based in Mauritius. Previously the firm had also operated a UK based Recently visitors to the firms UK website ytfx.co.uk have been presented with the following notice:
‘Youtrade Capital Markets has applied to the Financial Conduct Authority for a Voluntary Variation of Permission, this in effect means that the company can no longer conduct any investment business in the UK.’
It remains unclear whether YouTrade intends to resume providing services for customers based in the United Kingdom, with the FCA Financial Services register still listing Youtrade Capital Markets Ltd. as an authorised investment firm. Though the notice suggests that the firm does not intend to accept any new UK business, it will be interesting to see what becomes of the UK arm and whether the YouTrade group will drop the brand completely.