Tips for Online Investing

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  • Check to see if there are any prior complaints against the company whose shares you are intending to purchase. Call the applicable stock exchange or securities commission which keep records of prior complaints against public companies. Also check our Complaint Database.

  • Order financial records of the company to determine its financial position. Read all of the company's information circulars, prospectuses and annual reports which will give you information about the company's operations.

  • Ask your broker about the company. The broker will have access to public information of the company and can assist you in determining what type of company you are dealing with.

  • Determine whether the company's shares are thinly traded. If the company's trading volumes are low, this is a sign that you are dealing with a speculative company, whose share prices can be easily manipulated on little trading volumes.

  • Ignore rumors and hot tips. Rely solely on actual facts based on official press releases and other official documents of the company. Be aware that in some cases promoters have fraudulently issued press releases containing false information to inflate the share price of a company.

  • Be wary of any promotion of a stock found in bulletin boards, newsgroups, newsletters or emails unless you know the persons disseminating such information.

  • Don't be pressured into buying any stock or lured by promises of guaranteed profits at no risk. Nothing in life is guaranteed.

  • Ask the promoter whether he or she is being paid by the company to promote a stock. This includes questioning the author of newsletters or emails.

  • Don't assume people are what they say they are. Always do your own research and make informed decisions based on fact.

  • Finally, if you think you have been scammed, report the scam to our Complaint Centre and your local Better Business Bureau. You may also want to contact your local Enforcement Agency to assist you in investigating the scam.

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