IIROC Regulated Forex Brokers

The IIROC, or Investment Industry Regulatory Organization of Canada, is a self-regulated body since 2008 by the coming together of two key industry players; the Market Regulation Services Inc. (RS) and the Investment Dealers Association of Canada (IDA). IIROC is responsible for overseeing and regulating all activities related to investment and trading in Canada, including the regulation of companies related to debt and equity. IIROC is also responsible for coming up with the necessary legal framework under which investment firms are going to operate. Their enforcement of this framework promotes integrity and confidence within the industry and ensures a fair and competitive playing field for all stakeholders in Canada. They are also responsible for protecting the rights of investors under their jurisdictions.

Broker Regulation Max Leverage Min Deposit
ASIC, 28381
CySEC 201/13
FCA (UK), 595450
FSA (Estonia), 10932555
FSA (Seychelles), 8426894-1
FSCA (South Africa), FSP51311
IIROC, 29.04.2022
Jordan Securities Commission, 57026
1:500 $100 Review
CFTC/NFA 0339826
FCA (UK), 190864
FSA (Japan), 1539
IIROC, May 10, 2012
1:200 $250 Review
United Kingdom
ASIC 493520
CySEC, 385/20.
FCA (UK), 609970
FSC (Mauritius), GB21026472
IIROC, 20-0021
NBRB (Belarus), 193075810
1:100 $500 Review


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.

What are IIROC rules?

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.

What are the powers of IIROC?

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.

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