Released on September 22, 2022
In recent years, Do It Yourself (DIY) Investing has exploded in popularity, with more apps than ever offering accessible and affordable trading options. The Financial and Consumer Affairs Authority of Saskatchewan (FCAA) warns investors to consider carefully if DIY investing is the right fit for their investment needs, by weighing factors such as their investment strategy, risk tolerance and goals, and ability to identify fraudulent opportunities.
"Before jumping into DIY investing, take the time to assess your risk comfort level and check to see if the platform you are using is registered," Securities Executive Director Dean Murrison said. "Be careful of investment opportunities that offer too-good-to-be-true returns, even if they look legitimate. DIY investing can be successful for many people, but it requires discipline and financial knowledge. It should not be undertaken lightly."
DIY investing is not suitable for everyone. It requires planning, research, and time. A DIY investment portfolio should be based on defined short to long-term goals and customized to fit financial and personal circumstances. Lack of understanding of investment products is one the biggest contributors to investment loss.
Investors are warned to pick their information sources carefully and be wary of investment advice from social media influencers, who may only have a layman's knowledge or may promote products that benefit their own interests.
Investors should also be mindful of risk level when considering DIY investing opportunities and never invest more than they can afford to lose.
Investors should always remember to check before they invest and visit the FCAA website to confirm that any entity they are using to invest is registered in Saskatchewan. Registered status means that the entity has undergone a thorough vetting process. Unregistered dealers or platforms cannot legally sell investment opportunities in this province.
For more information about DIY investing, visit our website at https://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/investors/do-it-yourself-diy-investing.
For more information, contact:Lana Guthrie
Financial and Consumer Affairs Authority