The FSCA warns the public against doing any financial-related business with forex trading platforms that promise an income stream during the COVID-19 lockdown.
In a media release, the FSCA mentions that they were alerted that some forex trading platforms are telling the public that risks associated with forex trading are quite low and that people with limited trading experience can earn a steady income in volatile financial markets. These platforms also offer CFDs (Contract for Difference), a highly leveraged financial product that could result in significant losses.
“Even though these trading platforms offer demo accounts, these accounts have been set up to simulate normal trading conditions that would lead to favourable outcomes, and do not simulate the high volatility the financial markets are currently experiencing,” the FSCA advised.
Financial Advisers should always share these alerts with their clients who might be approached by other persons who might not even be authorised to render these financial services.
