The British Columbia Securities Commission recently released a statement disassociating itself from all activities of Zulutrade, stating that “Zulu Trade Inc. is not registered to trade in, or advise on, securities or exchange contracts in BC”. They therefore urged all residents of the region to exercise caution when dealing with this firm as Zulutrade gets red-flagged.
Having a closer look at Zulutrade, the company is a web-based trading platform provider, which describes itself as a system used to bridge the gap between valuable information in money markets and trade execution, through it’s own developed API. Basically, the firm enforces the trading’s activities and knowledge sharing between traders on a global base.
Relating back to the warning, Zulutrade might have been overlooked the unique and elaborate regulating environment of Canada. Since in this specific country, it is required to be in possession of special licenses for offering Forex services in each of the different states. Making it more troublesome for entities within the forex industry to offer their services in these states.
When assessing the case of Zulutrade upon other regions, it is fair to note that the trading platform is well licensed in other credible parts of the world. An example is the European market, where the firm is in partnership with AAAFx for its license, which is in accordance with the MiFID guidelines.