We recently became aware that AvaTrade Ltd. is advertising its services to Canadians.
AvaTrade Ltd., avatrade.com, and its affiliate site forexportal.ca are not registered to trade in, or advise on, securities or derivatives in New Brunswick. This means that it is illegal for this company to carry out these activities in the province.
We urge New Brunswick residents to exercise caution when dealing with firms that are not registered to trade or advise in New Brunswick.
According to its websites, AvaTrade is a multi-national company headquartered in Dublin, Ireland. They claim to be licensed as a regulated broker in the EU, Japan, Australia, South Africa and the British Virgin Islands, providing clients with trading software and multiple trading platforms. They trade in foreign exchange markets (“FOREX market”), cryptocurrencies and contracts for difference (CFDs).
The FOREX market, also referred to as the Foreign Exchange or FX market, is the market place for the purchase and sale of currencies and speculation with respect to price changes between currencies, usually on very short time spans. Profits and losses for traders depend on the fluctuation in the exchange rate between two currencies. Trading on the FOREX market is very risky. Consumers considering the FOREX market should do their research and understand what they are getting into before investing. Anyone investing in the FOREX market should understand that they could lose all of their investment.
Cryptocurrency trading is also receiving a lot of attention lately and is being aggressively hyped in social media and other channels.
Consumers should be very cautious about getting involved in these products. Cryptocurrencies are volatile and highly risky. As with FOREX market investing, anyone investing in cryptocurrencies should be aware that they could lose all of their investment.
Contracts For Difference (CFDs) are specialised financial derivative products which enable you to trade on the price movement of these financial assets: Indices Futures, Commodity Futures, Cryptocurrency, Shares and Exchange Traded Funds. They enable clients to trade freely without actually owning the underlying asset or acquiring any rights or obligations in relation to the underlying asset.