Top Forex Brokers in Canada for Forex Trading
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The Forex market is an extremely liquid global market. This makes it very popular with individual investors and small businesses as well as with banks, insurance companies and financial institutions.
Even though it is quite difficult to regulate the fast paced Forex market, there are quite a few governmental and non-governmental agencies around the world which regulate the flow of capital in the Forex market. The IIROC is a non-profit, self-regulatory organization which controls all Forex brokers and the activity they provide to customers.
In Canadian law Forex trading is regulated as either trading in securities or derivatives depending on the region or province where the Forex broker is registered. All Canadian Forex brokers which intend to provide services to Canadian citizens have to be registered how to become a currency trader in canada a member of the IIROC as well as to be registered in the province in which they will conduct their business if they want to be how to become a currency trader in canada to offer trading on margin.
In an attempt to explain legal Canadian Forex trading in more detail, we will list the answers to the ten most frequently asked questions on the topic. Because how to become a currency trader in canada the heavy regulation, Canadian Forex brokers offer lower how to become a currency trader in canada compared to other Forex operators around the world. The pitfalls of a high leverage are often greater than the benefits it offers to the investor.
Canadian regulatory bodies have been quick to realize this and traders should appreciate the protection which is being granted to them. Regulated Forex traders are rarely involved in scams and frauds. However, traders should always try to look for red flags which signal a Forex scam:. The Canadian Forex market is one of the most heavily regulated Forex markets in the world.
This gives added security to individual investors and small businesses in an often turbulent market. What follows are a few key regulations which Canadian Forex brokers must adhere to:. It is clear from the above mentioned rules that Canada has quite strict regulatory procedures.
For example the how to become a currency trader in canada available leverage which varies from currency to currency is higher for major currencies and lower for more exotic or minor currencies. It is also lower than what the US regulatory bodies specify as the maximum possible leverage. As with all regulated markets the Canadian Forex market also deems hedging in the same customer account as illegal even though Forex traders often try to find ways around it. Finally, because of the quite high minimum income, assets and net worth requirements, a lot of Canadian Forex traders are finding it difficult how to become a currency trader in canada enter the market.
In short, this means that if you are have enough capital to enter the market you will participate in the safest Forex market in the world. There are NO Forex Brokers who hold a valid license to operate in the country. We will notify you if the situation changes. Which Canadian Forex brokers can trade with Canadian citizens?
How can I check if a Forex broker works legitimately? The IIROC on its website offers a chance for future traders to gain information about the background, qualifications and disciplinary information of Canadian Forex brokers. How do Canadian based brokers differ from Forex brokers based in other countries how to become a currency trader in canada it comes to financial regulations?
As we already said the Canadian market is very strictly regulated. When you compare it to other markets around the world such as the US or UK Forex market you see that the security it offers against scams and frauds is not paralleled. Can Canadian citizens do business with a US Forex broker? For a US Forex broker to be able to conduct business with a Canadian citizen there must be two criteria which are met.
First the broker must have a physical presence in Canada and second it has to be registered as a broker with securities in Canada. What are the payment options that Canadian Forex brokers offer to customers? Can I be led into a fraudulent transaction with a regulated Canadian broker? Canadian Forex brokers are so heavily regulated that it is nearly impossible to be involved in any sort of fraud or scam.
If there is a situation in which a regulated Canadian Forex broker leads you into a scam through misinformation or some other means of misleading the trader then that broker will be heavily penalized, stripped off his license and put on the wall of shame.
This might not seem as a consolation for the misled party, but penalizing actions such as these are designed to prevent Forex brokers from going into a fraudulent deal in the first place. How can I avoid getting involved in a broker scam? If you always check that the Forex broker that you deal with is registered with the CSA, complies with the IIROC regulations and is also adhering to specific provincial or regional laws then you cannot and will not be involved in a scam.
However, there is always a chance that you are the victim of some of the misleading techniques and methods which fraudsters use and which we will discuss further down in this article. If this happens you are most likely not dealing with a regulated Forex broker and you even might not be dealing with a Forex broker at all. Do all the Canadian provinces comply with the same Forex operating laws?
Different provinces may have to comply with additional rules and requirements unless an exemption is granted. British Columbia, Ontario and Quebec sos binary options and fraud government some of these provinces.
All recognized and regulated Forex brokers, including those under the umbrella of IIROC, offer their clients the chance to start trading with a virtual or demo account if they are new to Forex trading. With these accounts new Forex traders get to learn the basics of trading by investing and speculating with virtual funds before transferring to the real thing.
Is a registered Forex broker a guarantee for an exceptional service? Facebook Twitter Pinterest Google Plus.