How did we choose our best forex brokers in Canada?
The most important factor for the Trading Brokers team to consider when choosing the best Canadian forex brokers was that the brokers are regulated by the Investment Industry Regulatory Organization of Canada (IIROC). Once the brokers regulation had been confirmed, we then researched and analysed the brokers forex trading service in great detail and assigned them with an unbiased broker rating based on our own findings. During this research, we gave great consideration to what we deem to be amongst the most important factors to consider when choosing the best forex trading brokers, including:
- Regulation: A forex broker in Canada should be regulated by IIROC.
- Forex Trading Platforms: The forex broker should offer traders a range of the best trading platforms that are user friendly, intuitive and compatible across multiple desktop, web and mobile devices.
- Forex Trading Instruments: They should have a large selection of minor, major and exotic currency pairs for trading.
- Spreads: The forex brokers spreads on currency pairs should be competitive and as low as possible.
- Commission: The commission charged for trading forex currencies should be competitive, the lower the better.
- Fees: Any additional fees such as accounting, inactivity, etc, should be made clear to traders from the get go.
- Execution Speeds: The forex broker should have reliable trade execution speeds with minimal slippage.
- Liquidity Providers: Ideally, the forex broker will have a vast pool of liquidity providers (LPs) in order to deliver consistent execution speeds and tight spreads.
- Forex Trading Tools: The forex broker should provide a vast array of trading tools for analysing charts, planning and managing trades, trading signals, social trading, etc.
- Forex Educational Resources: Most new traders will need a selection of educational materials on different trading topics to help them improve their trading skills and knowledge. Training tools can include video tutorials, trading guides, webinars, etc.
- Forex Account Types: There should be flexible account options to suit different trading styles and budgets.
- Forex Account Funding Options: The forex broker should offer a choice of convenient account deposit and withdrawal methods.
- Customer Support: The forex brokerage should have a prompt, polite and knowledgeable customer support team on hand to answer traders general and technical questions.
Canadian forex broker regulation
Forex trading is the speculating on the price of one currency against another currency, commonly known within the trading community as a currency pair. Online forex trading has increased in popularity over the years with many online brokerages opening which has given traders a vast choice of brokers who are all competing for their business. This can make it difficult to choose the best forex brokers in Canada.
We believe that it is of upmost importance that a forex broker providing services to traders in Canada is regulated by the Investment Industry Regulatory Organization of Canada (IIROC). Using a regulated broker helps to give traders peace of mind that they are using a forex broker which is subject to strict rules and regulations put in place to help protect investors. It is worth mentioning that there are some non-Canadian forex brokers that still solicit clients located within Canada. There are also Canadian forex brokers who offer online forex trading services to clients located in some countries outside of the Canada. In this instance, it would be a considered a wise idea to ensure that the forex broker in question has the relevant regulation within the jurisdiction that they operate from.
Investment Industry Regulatory Organization of Canada (IIROC)
The Investment Industry Regulatory Organization of Canada is the national self-regulatory organisation which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. IIROC was established as a non-profit corporation on June 1st, 2008 as part of the consolidation of the Investment Dealers Association of Canada (IDA) and the Market Regulation Services Inc. (RS).
IIROC operates under Recognition Orders from the Canadian Securities Administrators (CSA), which is the umbrella for Canada’s provincial and territorial securities regulators. IIROC is subject to CSA oversight and regular operational reviews. The organisation sets regulatory and investment industry standards and has quasi-judicial powers in that it holds enforcement hearings and has the power to suspend, fine and expel members and registered representatives.
Verifying the regulation of forex brokers in Canada
If a forex broker has been licensed by IIROC, they should be provided with a registration number as proof that they are registered. This number is usually located on the brokers website, near the footer where they state who they are regulated by. You should check on the IIROC website to validate the current status of the broker registration to ensure that it is valid and up to date. It has been known for some scam brokers to fake regulation, some even going as far to clone another brokers website. When you are looking up the registration number, you should find details of the forex broker including their website, contact details and if they have any cases brought against them.