Canadian Forex Brokers
Forex brokers from the USA, UK and Europe are popular, but still, there are forex brokers in other countries that offer competitive forex services. Canadian forex brokers offer various compelling benefits for day traders and investors. Forex trading is risky, irrespective of the forex broker you choose.
However, you can enjoy some form of protection for your money, if you choose a regulated forex broker.
Forex brokers in Canada must provide protection to investors and traders through the Canadian Investor Protection Fund (CIPF). This insurance guarantees up to $1 million for traders, when the forex broker applies for bankruptcy. I
f the brokerage firm is liquidated, traders can get back up to $1 million. This is much greater than the £50,000 offered by the FCA for traders in the UK.
Traders who want to hold millions of dollars in their forex accounts, can safely choose Canadian forex brokers because of the insurance protection.
Regulated FX Brokers in Canada
Forex Regulation in Canada
There is no central regulatory authority in Canada that regulates and authorizes financial firms. Forex brokers are allowed to operate, without a valid license in Canada. While this provides flexibility for traders, it also increases the risk considerably. The Investment Industry Regulatory Organization of Canada (IIROC) is one of the main regulatory companies, overseeing financial companies. It is responsible for monitoring forex brokerage firms that deal with OTC products and derivatives.
Forex Regulation by Province
There are other regulatory bodies, such as the Canadian Securities Administrators (CSA), The Financial Services Commission of Ontario, The Alberta Securities Commission, The British Columbia Securities Commission, The Financial Transactions and Reports Analysis Centre of Canada, The Mutual Fund Dealers Association, The Canada Revenue Agency, The Office of the Superintendent of Financial Institutions, The Ontario Securities Commission, The Autorite des marches financiers (Quebec).
In Canada, the governing regulatory bodies differ, with respect to the province of the forex brokers. This can be confusing for forex traders because the brokers can operate, even without a valid license. The regulatory environment in Canada is ambiguous because of the internal conflicts, between various regulatory bodies.
IC Markets no longer accepts Canadians**
Here are our top picks for Best Forex Broker for Canadians
Overall IC Markets is a fantastic broker That offers trading platforms on metatrader 4/5 and ctrader. The main reason why its our pick for best forex broker for Canadians is the fact that they offer trading accounts in CAD currency, excellent customer service and are Canadian resident friendly. They are everything you want a forex broker to be, and you feel at ease that they are an Australian broker. For more info click here.
IIROC guidelines and Trading Overseas
It may seem impossible to find a Forex broker that accept Canadian residents. Strict regulations and general confusion on regulations keep some brokers from dealing with Canadians. There still are many Forex brokers that accept residents of Canada.
In an attempt to impose stringent regulatory requirements, the IIROC in Canada follows the NFA and CFTC of USA. IIROC regulated forex brokers can offer low leverages. This has discouraged many brokerage firms from getting IIROC regulations. With a lower leverage, not many Canadian traders are interested in Canadian forex brokers.
Canadian citizens are required to choose a forex broker regulated by IIROC.
However, it is not illegal to choose some other global forex broker because numerous regulatory bodies work in various provinces of Canada.
When you live in Canada and want to choose an overseas forex broker, you should understand the legal consequences and consult a legal advisor, before heavily investing with a foreign forex broker.
Below you will find a list of international FX brokers that accept Canadian citizens.
Forex Brokers that accept Canadian Residents