Manitoba Securities Commission warns investors of trading website
Manitoban loses $100,000, suffers credit damage after investing money with Malta firm
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 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.