List of Brokers with IIROC Regulation
The Investment Industry Regulatory Organization of Canada (IIROC) serves as the primary regulator of Canadian financial markets, including online brokers. They are tasked with overseeing all retail trade activity in Canada to protect citizens from fraud by setting and maintaining industry standards. IIROC is also authorized to respond to online fraud and unauthorized trading activity. All companies that operate or facilitate securities trading in Canada must be members of IIROC and follow their regulations.
Established | : | 2008 |
Country | : | Canada |
Website | : | https://www.iiroc.ca |
Total Brokers | : | 4 |
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FAQ
What does IIROC regulated mean?
Being regulated by IIROC (the Investment Industry Regulatory Organization of Canada) means operating under the standards of a Canadian financial regulator. The body was established on June 1, 2008 to oversee investment dealers and trading activity in Canada, along with monitoring forex brokers and firms involved in OTC products and derivatives offering.
Recent changes in IIROC guidelines have decreased forex brokers' limit of leverage dramatically. It is said that IIROC's rules on leverage is even more extreme than those of the US authorities. However, their client protection scheme is quite robust as the agency requires a significant amount of compensation to investors should a broker end up in bankruptcy. In fact, the Canadian Investor Protection Fund (CIPF) compensates investors with up to $1 million dollars in the event of a broker's insolvency.
For investors, the downside lays in IIROC's strict policy against international brokers. Still, many of Canadian investors have taken advantage of the confusion regarding the different regulatory agencies in the country to trade with overseas brokers without any immediate repercussions.
What is the main purpose of IIROC?
The IIROC's important functions basically deal with the supervision of the financial services industry. Here are the general purposes of IIROC:
- To perform regular reviews on individual regulated firms.
- To develop rules and ensure the highest standards in the investment industry.
- To screen employees for ensuring well-trained, well-educated, and background-checked staffs in all IIROC regulated financial service providers.
- To set minimum requirements, particularly in relation to capital requirements.
- To investigate misconduct and initiate disciplinary proceedings as well as impose penalties if deemed necessary.
As a credible regulatory agency in Canada, IIROC has the authority to require forex brokers under its jurisdiction to have a valid IIROC license or a Canadian financial license from any of its other provinces. They have the power to suspend, sanction, fine, and expel any member firms found to have violated their guidelines. The organization sets regulations in the investment industry and has quasi-judicial powers that enables them to hold enforcement hearings.
If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.
Additional FAQ
What should we do if the broker's regulation is still "in process"?
Some brokers might claim that they are in the process of applying for a license or a license extension. But in reality, not all brokers are true to their words. Some of them don't actually apply for any license and only use those words to steal the clients' funds. Even if the license is indeed "in the process", the broker's still unregulated during that time.
Continue Reading at Forex Regulation Insights: Defining Your Broker's Status
What is the regulatory status of forex trading in Nigeria?
Online trading in Nigeria is currently unregulated, while offline forex trading is well-regulated. This regulatory contrast is due to the differences like these two markets.
Continue Reading at Is It Safe to Trade Forex in Nigeria?
How's the forex regulation in Kenya?
The Capital Markets Authority (CMA) is the financial regulatory body in Kenya. Although the CMA was established in 1989, it was not until 2016 that the government granted the CMA the power to monitor forex trading. Before this, the market was full of scams committed by unregulated brokers. Today, thanks to the Financial Act of 2016, forex trading is more secure and transparent in Kenya.
Continue Reading at Is Forex Trading Legal in Africa?
What are the regulations for offline forex trading in Nigeria?
The foreign exchange transaction activity in the offline market is supported by law. Some of these include the Central Bank of Nigeria Act of 1958, the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act of 1995, the Exchange Control Act of 1962, the Banks and Other Financial Institutions Act of 2007, and the Investments and Securities Act of 2007.
Continue Reading at Is It Safe to Trade Forex in Nigeria?
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