Forex trading in Canada is a flourishing business attractive to traders and enthusiasts looking to profit working from their home as a side job or as full-time traders. With a number of new traders every day in this high-risk industry, there is an obvious need for regulation of Forex brokers in Canada to implement high standards and create a consistently safe market for the traders.

What is IIROC?

logo iirocThe Investment Industry Regulatory Organization of Canada was founded in 2008 as a merger of existing market regulation services. It’s a national organization supervising and administering the market providers and trading activities with an ultimate goal to provide market integrity and overall safety. IIROC works under Recognition Orders as part of CSA (Canadian Securities Administrators) which is formed and recognized by all provincial securities commissions. The IIROC has set high standards to ensure the protection of individual traders through regulation and strict procedures for brokers to obtain and hold licenses, further ensuring and providing effectiveness and competitiveness in the market.

What Does IIROC Stand For?

As a self-regulatory organization, IIROC is intent on setting highest standards in the investment industry. They strive to implement strict and healthy regulations, while still maintaining an open and competitive trading market. Some of the highlights of IIROC’s mission include:

  • To inspire confidence by standing against those to commit and wrongdoings
  • Become and stay a reliable and trustworthy partner for the stakeholders
  • Be one of the leading and most trusted securities regulators in the market

The organization sets certain ground rules for Forex brokers in Canada and see to it these rules are actually observed. They constantly monitor financial and business activities of the brokers they regulate, making sure there are no irregularities of any sort. Furthermore, IIROC also makes sure that all companies under their license remain financially solvent. It is their job to establish financial soundness of different companies and Forex brokers and revoke their licenses if it is determined one of these companies does not have sufficient capital to support the type of undertakings they usually get involved with.

Best Forex Brokers

* Not valid for EU traders, T&C apply
Broker Bonus Min Deposit Regulation Review Visit Site
Xtrade $20 Free $100 CySEC Read Review Open Account
XM $30 Free* $5 CySEC Read Review Open Account
AvaTrade 40% $100 MiFID Read Review Open Account

Foundation of Self-Regulation

As we said, IIROC is a self-regulatory organization, but what does this really mean. A self-regulatory organization is a type of an establishment where cooperation from the market participants is required for the organization to do its job. Top Forex brokers in Canada must willingly submit to the IIROC supervision, as it doesn’t have the power to force them into submission. While the model itself sounds nice in theory, self-regulatory monitoring agencies are always challenged. It is important for IIROC to have good cooperation with as many financial companies as possible, so it begs the question if the organization is really strict enough in implementation of its rules and regulations. IIROC does respond to investor complaints about particular IIROC regulated Forex brokers, but it is somewhat questionable to what extent they are able to force brokers to disclose all relevant information and how likely they are to withdraw a license except in the most sever of cases.

Role of CIPF

The Canadian Investor Protection Fund (CIPF) offers some additional reassurances to traders doing business with IIROC regulated Forex brokers. In the event a company becomes insolvent and its clients are left hanging, the CIPF will come to the rescue, offering some sort of reimbursement.The protection the CIPF offers is not absolute, but it does help you feel a bit better. The Protection Fund will strive to make clients whole as much as possible, but their capabilities are also limited. Still, having that extra layer of protection is a nice touch and does make one feel better about doing business with IIROC licensed Forex brokers.

Top Forex Brokers in Canada Summary

Forex trading opportunities are definitely good for Canadian traders and the regulation has further improved the consistency and the overall quality of the market and the providers. Forex brokers in Canada offer high-quality service with CFDs and tight spreads, educational possibilities, and genuine customer care. The IIROC regulated brokers will provide standard as well as unique trading platforms with great execution times, user-friendly interface and accessibility through PC as well as Android and Apple devices. The high standards enforced by the Investment Industry Regulatory Organization of Canada definitely provide general reliability with the Forex brokers in Canada, whether you think of security and safety or trustworthiness and consistency of the data provided. Over the years, it has proved safe to say that IIROC regulated brokers are trusted by the trading community around the world too, and the client reviews are overwhelmingly positive. However, as we often like to say, the overview of the top Forex brokers should be taken as a first step in deciding on your favorite broker company as we always encourage in-depth research through direct contact with the broker representatives, customer support and finally actual trade through demo accounts if possible. Do keep in mind that trading with a IIROC regulated Forex broker puts you under the protection of CIPF, so the chances are, even if things go south, you will not lose all of your money just because a seemingly good broker suddenly decided to go rouge.

Other Forex market regulators

FCMC regulated Forex brokers FMRRC regulated Forex brokers Danish FSA regulated Forex brokers
HKSFC regulated Forex brokers NAFD regulated Forex brokers IBFC regulated Forex brokers
FCMC regulated Forex brokers FMRRC regulated Forex brokers Danish FSA regulated Forex brokers