Manitoba

Manitoba Securities Commission warns investors of trading website

A Manitoba resident lost approximately $100,000 plus credit card charges after sending money to Onetwotrade.com, a trading website based in Malta.

Manitoban loses $100,000, suffers credit damage after investing money with Malta firm

The Manitoba Securities Commission says it's always a red flag when an online investment firm asks investors to send money overseas to an unregistered firm. (iStock)

A Manitoba resident lost approximately $100,000 plus credit card charges after sending money to Onetwotrade.com, a trading website that says it's based in Malta.

The Manitoba Securities Commission warns investors that OneTwoTrade.com and the company that operates it, Up and Down Marketing Ltd., are not registered to sell securities in the province and their actions are not in compliance with Manitoba's securities laws.
A banner ad displayed on the OneTwoTrade.com website. (OneTwoTrade.com)

The securities commission said along with losing thousands of dollars, the Manitoba resident may have to pay higher interest on loans in the future.

Up and Down Marketing Ltd. is also on the Ontario Securities Commission's warning list.

Onetwotrade.com calls itself a binary option firm.

"With more than 350 underlying assets spanning stocks, currencies, commodities and indices, OneTwoTrade provides traders with more opportunities to profit," the website states.

Binary options are a type of "wager" in which investors bet on the performance of an underlying asset, often a currency, stock index or share, usually in a short period of time, said the MSC.

"When that period is up, the investor receives a predetermined payout or loses his wager. It's an 'all or nothing' proposition," the MSC said in a news release.

Sometimes with offshore investments, no trading actually takes place and the online "investment" is simply a tool to steal money, the securities commission said. Any request to send money offshore to an unregistered firm is a red flag for investment fraud, it warned.

The securities commission offers these tips to investors:

  • Never send money to anyone you only know from an unsolicited phone call or email.
  • Never give out sensitive personal information online or over the phone.
  • Research an investment before making a commitment.
  • Make sure the firm and individual you are dealing with are registered in Manitoba by checking their registration status.

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