Canadian provincial financial regulator The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has announced that it has issued a Temporary Cease Trade Order against Ava Trade Limited. The FCAA stated that AvaTrade appears to be operating an unregistered online platform that allows users to trade in Forex and Contracts for Difference (CFDs).
FCAA Deputy Director Ed Rodonets said:
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.
The FCAA stated that AvaTrade purports to be a regulated Forex and CFD broker with offices in Ireland, Italy, France, Japan, Spain, Australia, Mongolia, China, Nigeria, Chile, and South Africa. Its online platform is located at avatrade.com.
AvaTrade also operates under the names of AvaTrade Limited, AVA Trade Limited, AVA Trade EU Limited, Ava Capital Markets Australia Pty Limited, Ava Trade Japan K.K., and Ava Capital Markets Pty. The company also apparently has a unit in Israel operating using the ATrade brand.
AvaTrade is not registered to trade in securities or derivatives in Saskatchewan, or elsewhere in Canada. The company is also the subject of several investor cautions and warnings issued by Ontario, Quebec and British Columbia.
The FCAA stated that anyone contacted by AvaTrade should contact the FCAA Securities Division at 306-787-5936.