The forex market comes with a lot of excitement and opportunities, with funds exchanging hands in the range of $5 trillion daily. To tap into these opportunities, you have got to work with a reputable forex broker. If you live in Alberta Canada, there are several online brokers for you to choose from. You can read our Forex Brokers in Canada article to get insight into the best forex brokers in Canada.
Once you’ve settled for a forex broker, the next puzzle for you to solve is how to trade forex in Alberta. Trading forex in Alberta may appear overwhelming if you don’t know the basics about the forex market.
Therefore, in this article, we will frame up the process of trading forex in Alberta and how to become an accredited trader.
Table of contents
How to Trade Forex in Alberta: Steps and Requirements
The Canadian government has stringent measures in place to protect forex traders. Hence, the government set up the Investment Industry Regulatory organization of Canada (IIROC) to serve as the regulatory body. The mandate of IIROC is to regulate the financial market so that Canadians would not lose their hard-earned money. Any broker that is licensed and regulated by IIROC is said to be genuine and reputable.
Hence, to trade forex in Alberta, you must qualify as an accredited investor or professional investor. The reason being that Alberta is a special area in Canada. Because of this, it is not unique for traders to ask themselves “how to trade forex in Alberta.”
The heavy regulatory requirements of trading forex in Alberta has scared so many potential traders away. Therefore, we will show you how to trade forex in Alberta.
Below is a step-by-step guide on how to trade forex if you live in Alberta.
1. Become an Accredited Investor
The first step to trading forex in Alberta is to become an accredited investor. To earn the recognition of an accredited investor is not complicated. In fact, the recognition is similar to the European Professional Investor category. More details of how to become a professional investor have been clearly highlighted in the next section.
2. Choose your Forex Broker
Once you have earned accredited investor recognition, the next step is to choose a forex broker. The choice of your preferred depends on your needs and trading preferences. However, any broker you settle for must be licensed to operate in Alberta by the IIROC. For a list of licensed brokers in Alberta and Canada in general, you can read our guide on the best canadian forex brokers.
3. Open your Trading Account
After choosing a forex broker, the next step is to open a trading account with the broker through their official website and complete the account creation form. Upload the necessary documents for KYC approval and your account should be up and running.
After opening an account, you need to fund the account by depositing funds using any of the payment methods supported by the broker. Keep in mind that you will show the broker that you are an accredited investor; otherwise the broker may not approve your trading account in the first place.
With funds in your trading account, you can start trading to make profits. At this point, let’s mention that before you start to trade with a live account, ensure you already practice forex trading with a demo account. The demo account will help you develop trading confidence and trading strategies that would help you to make profits using a live account.
Trading Forex in Alberta: How to become an Accredited Investor
We mentioned earlier that in this section, you can learn everything about becoming an accredited investor. But first what exactly is an accredited investor?
What is exactly an accredited investor?
An accredited investor is someone, trader, or financial institution that has been conferred with a recognition to trade forex in Alberta. Accredited investors are exposed to so many exciting opportunities that are not available to the ordinary investors.
In other words, being an accredited investor means that you are knowledgeable about the forex market, and by extension, the financial markets. If the entity concerned is an institution, it means that the institution has been licensed to trade different currency pairs on behalf of forex enthusiasts.
Requirements needed to Trade in Alberta
We mentioned earlier that accredited investors are similar to professional traders in the EU. Hence, to become an accredited investor, you have to meet certain entry requirements.
First, you have to qualify as a bank or any other financial institution. Secondly, in the last two years you must have a net income of at least $200.000. Thirdly, you must have at least $1.000.000 in your investment portfolio. Then lastly, you must have invested at least 5.000.000 in properties or real estate.
Once you meet the above requirements, you are one step closer to becoming an accredited investor in Alberta.
Is Forex Trading Legal in Alberta? An Overview on the Alberta Securities Commission (ASC)
Absolutely, forex trading is legal in Alberta. But to trade forex, you have to earn recognition to become an accredited investor. Otherwise, you won’t be able to trade the forex market. As a matter of fact, even retail investors residing in Alberta are not allowed to trade forex except they become an accredited investor. However, the scenario is different in other Canadian regions.
When it comes to financial investment in Canada, the government has measures in place to protect its citizens from losing their hard-earned money to scammers. And that is why they created the Investment Industry Regulatory organization of Canada or IIROC to regulate the forex market.
Also, each province in Canada has its regulator. The Alberta Securities Commission or ASC is in charge of Alberta province. The ASC is saddled with the responsibility of administering the province’s securities laws. The agency also regulates the operations of all parties and stakeholders involved in the forex market. The agency ensures no trader or investor is cheated. It also carries out oversight functions of all the forex brokers licensed to operate in Alberta.
Regulated Forex Brokers in Alberta
While so many forex brokers flooding the forex space daily, it becomes overwhelming to identify a reputable forex broker. With heavy regulations in place, only brokers with the right requirements are allowed to operate in Alberta. These brokers also admit only accredited investors on their trading platform.
To find out the list of regulated brokers in Alberta, you can read our guide on the top 10 Canada forex broker.
There you have it. You can see that trading forex in Alberta is not as difficult as most people think. Once you follow the instructions we have highlighted in this article, you will be step closer to becoming the next professional forex trader in Alberta’s history.
Aside from checking the regulation status of a broker, other factors to consider are the ease of deposit or withdrawal of your earnings and the broker’s customer support service. Once you check the boxes in these areas, you would have no regret deciding to start a forex trading career.
About the Author
Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world.
A trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.
He is a keen golfer with a very high handicap so when not helping you find the best broker for your needs, you may find him on the course or just as likely following any number of sports from the comfort of his sofa.