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List of Brokers with IIROC Regulation

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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

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.

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

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

The Monetary Authority of Singapore (MAS) is the regulatory authority overseeing forex trading in Singapore. Singapore's regulatory framework allows leverage up to 1:500 and covers a wide range of forex pairs and cryptocurrencies.

Continue Reading at Forex Trading in Singapore: 5 Facts You Need to Know

According to the PRA rulebook, there are 3 areas of the PRA regulations. Firms must comply with the regulations depending on which classification they fall into.

  • Banking and Investment Rules: for CRR firms (banks, building societies, or investment firms subject to the EU Capital Requirements Regulation) and non-CRR firms (credit unions, building societies, or PRA-designated investment firms not subject to the EU CRR).
  • Insurance Rules: for SII firms (insurance firms subject to the Solvency II Directive) and non-SII firms.
  • Other rules: for non-authorized persons (persons or firms not authorized by the PRA).

Continue Reading at What are the Top UK Financial Regulators?

Here are the steps on how to check if a forex broker is regulated:

  • Check the broker's website.

  • Visit the regulatory agency's website.

  • Contact the regulatory agency.

Continue Reading at How to Avoid Forex Broker Scams