If you are about to start Forex trading in Canada, you should give a preference to Forex brokers that have been regulated by IIROC. In general, they can be a really hard process to find, but a proper understanding of the Canadian Foreign Exchange market and the laws will enable you to find the regulated brokers without a problem. Though we will not mind sharing some additional tips for your help.
Best IIROC Forex Brokers in Canada
Who are IIROC regulated forex brokers?
It would be important to look into IIROC regulated Forex brokers if you want a better understanding of the Canadian Foreign Exchange Market:
What is IIROC?
IIROC basically is “Investment Industry Regulatory Organization of Canada”. It should be noted that it is not a governmental organization. They are an independent organization that operates under the supervision of “Securities Commissions”, which, in turn, are government bodies. While it could be argued that’s practically the same thing, note that IIROC has some dominion of its own, regardless of how limited it may be.
Influence of IIROC in Foreign Exchange?
IIROC is largely a regulatory organization. While they do not have much control over, nor can they put restrictions over Forex traders, they may have some degree of authority when it comes to brokers. It should be noted that there are a lot of brokers out there that are not regulated by IIROC but are operating on higher levels, nevertheless. This shows that IIROC comes with limitations, at least for now.
Understanding Regulated Forex Brokers
Regulated Forex brokers are the ones that have received their licenses as brokers from IIROC. They operate under all the rules and regulations set up by IIROC and do not overstep the restrictions posed by them. If they do so, IIROC takes immediate notice of it and their licenses may be revoked.
Are Non-regulated Forex Brokers Legal?
It may sound absurd, but according to the rules of IIROC, you cannot be a Forex trader without a license provided by them. But at the same time, we know it’s not a government organization, so not much legal action can be taken by them for now.
There are many Forex traders in the market who are working with non-regulated brokers, and there is nothing that IIROC can do about it. The Forex traders are also safe from immediate action. All this is large because there are multiple regulatory organizations and much confusion.
Why work with IIROC regulated forex brokers?
Here are a few reasons why you should (or must) work with IIROC regulated Forex Brokers:
You get a sense of security
Once you are working with an IIROC regulated forex broker, you get a sense of security. That’s because these brokers have gone through a comprehensive examination by IIROC, and are testified as clean and legal to work with. On the other hand, if you work with a non-regulated broker you may have no guarantee what kind of an organization or person they are. Lastly, we have the benefits you get by trading with regulated brokers.
Easier to get Trading Benefits
The regulatory body has taken very important steps to make the environment feasible for Forex traders. For that, they have provided you with additional security and benefits if you work with IIROC regulated Forex brokers. That benefit is not given to you when working with non-regulated brokers, so your overall collaboration with them would not be as beneficial in the long-run, regardless of the justifications they give.
No chance of Fraud or Crime
We have mentioned before that IIROC examines the brokers comprehensively to give them the license. However, you should note that the chances of fraud or crime are still never zero. However, if this act is perpetrated by a licensed broker, the responsibility goes on the shoulders of the regulatory body, and they might have to compensate for it. This gives you a big edge when working with IIROC regulated Forex brokers.
How to know if you are working with IIROC regulated forex brokers?
Here’s how you can know or find out if you are working with IIROC regulated Forex broker:
Know the regulatory laws by IIROC
First, you should make yourself completely aware of the laws of IIROC. This will help you determine a regulated forex broker just by interacting with them for a while. If their actions or their provided directions do not go against the IIROC laws, they are most likely to be regulated brokers. If they seem to be going against the IIROC regulations, you can move on to the next steps.
Ask to see the Broker’s License
If you are in doubt or confused if your broker in IIROC regulated or not. You could simply ask them for the evidence of their license. If they are a regulated broker, they will definitely have their license and will have no reason to hide it from you. However, if they do not show it to you, then they are most likely not regulated by IIROC.
Contact IIROC for a list of licensed brokers
You can visit the website or IIROC or contact them for a list of all the regulated brokers. They will provide it with you pretty soon, and you can cross-examine to see if your broker is on the list.
Ask other Forex traders in your circle
If you have a lot of Forex traders in your circle, it’s highly unlikely that they are all working with non-regulated brokers. Rather, about 95-99% of them would be working with licensed one, and through them, you can get to a licensed broker yourself. It will give you additional comfort because now you are about to work with someone who is trusted by those in your circle.
As long as you are a newbie in Forex trading, Forex brokers would be essential to your success. However, with time and experience, you can work towards being an IIROC regulated Forex broker yourself, while you carry out your forex trading along with this work. This will be quite beneficial for you.