Feb 18, · The Canadian securities personnel has set up new norms and principles for forex trading in Canada in Other regulatory bodies like CFTC, NFA, and CIPF regulate forex trading for different individuals and firms. Thus, Canada has failed to obtain a united forex trading system due to other laws and blogger.comted Reading Time: 10 mins Maximum Forex Leverage: Canada is not a popular venue for non-resident Forex traders due to its tough regulatory regime and very small number of Forex brokers. More details about Canada’s regulation can be found here. Forex Brokers in Canada Forex Regulation in Canada Forex trading is legal in Canada. The IIROC (Investment Industry Regulatory Organization of Canada) oversees the forex industry on a national level, but local regulators also exert control. Canadian FX traders should check a broker is licensed with the IIROC before they open an account. How do I start forex trading in Canada?
IIROC Regulated Forex Brokers - A Guide to Traders in Canada
Wherever in the world you may be trading in Forex from, understanding the local regulations is very important. Generally, the Forex market is largely unregulated, with regulation taking place on a more local scale.
Choosing the best Forex broker is an important first step for anyone new to this form of investment. The situation regarding the regulation of Forex brokers in Canada is a little bit different from that in a number of other countries. So who is responsible for regulating financial services providers? In Canada, it is the Investment Industry Regulatory Organization of Canada IIROC that has national responsibility for the regulation of financial markets in Canada. However, and this is where things are a little different, financial market regulation is also enforced on a provincial level.
In addition to the IIROC, there are three provincial regulatory agencies: For the Toronto region, financial services are the responsibility of the Ontario Securities Commission. For British Columbia and surrounding areas, regulation is the responsibility of the British Columbia Securities Commission. While the Autorité des Marchés Financiers covers Montreal and Quebec.
The IIROC has a number of important functions with regard to the supervision of the financial services industry. They include the following:. This was seen as an unnecessary complication, and provincial and national regulatory bodies have been working hard to harmonise the situation. It has resulted in a new set of rules to guide Forex brokers and the conduct of the industry.
The original problem developed because provincial regulators were classifying Forex trading instruments differently. In Quebec, for example, it was viewed as a derivative instrument, whereas in Montreal and British Columbia it was viewed as a security. Two different classifications meant that two different sets of rules were applicable. With the new harmonised rules, both the IIROC and the provincial regulators use the same classification, forex trading canada regulations, and this has significantly changed the way Forex brokers in Canada operate.
If you live in Canada and are considering Forex trading, you should be aware forex trading canada regulations all Canadian Forex brokers have to be registered with the IIROC. A broker offering a service that involves trading in foreign currency pairs is classed as an investment dealer, which is an IIROC-registered activity.
Another recent rule set by the IIROC limits leverage towhich is, forex trading canada regulations, unfortunately, not good news for the smaller investor. It has meant that Forex trading has become a form of investment mainly for those with much larger amounts to invest, forex trading canada regulations. However, it should also be forex trading canada regulations a good move, as it limits the amount an investor is at risk of losing, forex trading canada regulations.
Any individuals who are employed by an IIROC regulated broker have to be appropriately qualified. This includes salespeople, who have to prove they are proficient in Forex trading contracts as well as being qualified futures traders.
Portfolio managers also have to be properly qualified, forex trading canada regulations, which should be good news for you, because it means that anyone setting up business in the financial services industry has the best qualifications. Although it has to be said there are a number of traders who would disagree, the new regulations are a good thing for Forex traders forex trading canada regulations Canada.
Such disapproval is leading many Canadian traders to forex trading canada regulations offshore brokers. After all, anything that ensures maximum security for clients funds has got to be a good thing, right? And rules that restrict the availability of such a risky form of investment ensure that only those who can afford to make losses and have the right mindset are able to participate in Forex trading. Many Canadian Forex brokers have already made the required changes, and there are also a number that have created independent IIROC-registered companies that operate separately from the parent company.
These independent companies are designed specifically for Canadian Forex traders. Performing your own due diligence is very important, as there have been a number of Forex forex trading canada regulations claiming to be regulated when they simply are not. With the new regulations and harmonised standards, Canadian traders can now feel much more confident in their choice of investment, forex trading canada regulations. We would urge all of our readers to consider regulation a positive thing, because it does tend to have your interests at the core of its operation.
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, time: 1:12:34Legal Canadian Forex Trading and Trading Platforms
Feb 18, · The Canadian securities personnel has set up new norms and principles for forex trading in Canada in Other regulatory bodies like CFTC, NFA, and CIPF regulate forex trading for different individuals and firms. Thus, Canada has failed to obtain a united forex trading system due to other laws and blogger.comted Reading Time: 10 mins Forex trading is legal in Canada. The IIROC (Investment Industry Regulatory Organization of Canada) oversees the forex industry on a national level, but local regulators also exert control. Canadian FX traders should check a broker is licensed with the IIROC before they open an account. How do I start forex trading in Canada? Regulation of Forex in Canada Forex trading is generally regulated as trading in either a security or a derivative, and its regulation varies under applicable provincial and territorial securities and derivatives legislation
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