6 Best CIRO (former IIROC) Regulated Forex Brokers for 2023
Forex.comVisit Forex.com73% of retail investor accounts lose money
AvaTradeVisit AvaTrade79% of retail investor accounts lose money
FXCMVisit FXCM70% of retail investor accounts lose money
OandaVisit OandaCFDs are not available to residents in the United States
CMC MarketsVisit CMC Markets78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
Interactive BrokersVisit Interactive Brokers74-89% of retail CFD accounts lose money
A CIRO forex broker refers to a forex (Foreign Exchange) brokerage firm which is regulated and authorized by the Canadian authority called Canadian Investment Regulatory Organization (CIRO).
The Canadian Investment Regulatory Organization (CIRO) is the national regulatory organization responsible for overseeing all investment and trading activities in Canada. The Organization was founded in 2023 through the merger of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
In turn, the Investment Industry Regulatory Organization of Canada (IIROC) is the result from the merger of the Investment Dealers Association of Canada (IDA) and the Market Regulation Services Inc.
The CIRO is responsible for setting and enforcing rules with transparency, integrity, and fairness regarding the proficiency, business, and financial conduct of all firms trading within Canada.
In order to rank the best CIRO (former IIROC) brokers we have taken into consideration a range of factors including:
- An active CIRO (former IIROC) license;
- The commissions charged on forex;
- The general quality of the broker;
- The deposit/withdrawal currencies accepted.
What are the best CIRO (IIROC) Forex Brokers?
Below is our curated list of the best forex brokers regulated by the CIRO (former IIROC), with details and information about the regulation, the features, and the characteristics.
CIRO Regulated Forex Brokers Comparison
Here’s the final comparison between the 6 brokers above. As you can see, none of them accepts retail clients from Alberta, and this is due to the strict regulatory environment of the region (which can be somewhat compared to Belgium within the European ESMA area). Check our post on how to trade forex in Alberta if you’re a resident of that region.
|Brokers||Directly regulated by CIRO||Alberta retail traders||Minimum deposit|
|Oanda||Yes||No||No minimum deposit|
|CMC Markets||Yes||No||No minimum deposit|
|Interactive Brokers||Yes||No||No minimum deposit|
How does CIRO work?
The CIRO operates in a similar faction as other top financial regulatory bodies. It provides the following functions in the financial market.
- Promotes growth of the Canadian financial market;
- Protects customers;
- Offers financial oversight for firms.
Besides this, the purpose of the CIRO is to inspire confidence while deterring wrongdoing in the market. As a leading-edge securities regulator, it creates a conducive culture that attracts and retains high-quality service in the financial market. As a forex trader, the CIRO serves as a body that regulates the activities of forex trading. Here is a link to check the verified Canada forex brokers approved by CIRO.
What are the characteristics and benefits of CIRO?
As a broker, being enlisted as a regulated broker means you have the legal right to offer different derivative products. Furthermore, all regulated brokers offer leverage up to 1:50 when trading.
Also, the Canadian Investor Protection Fund (CIPF) offers limited protection for property held by a member firm on behalf of an eligible client peradventure the member firm becomes insolvent. Another vital benefit of the CIRO is that securities are held in segregation by a Dealer member for a client. However, members are not protected from any negative balance.
What are the prohibitions with CIRO?
While other countries have restrictions in most trading financial instruments and derivatives, Canada allows most of these assets. It allows Spread Betting, which is banned in the USA, EU, and other countries, thereby allowing traders to trade whatever asset they desire.
Nevertheless, the CIRO doesn’t allow any broker to trade binary options, which is the only restriction in terms of tradable assets. All brokers have the license to offer other types of options.
Differences between CIRO Regulated and CIRO Licensed Brokers
To be a regulated forex broker in Canada, you need to have an CIRO license. However, a licensed broker offers its services through a local regulated broker. For instance, AvaTrade and FXCM can offer their services to Canadians through Friedberg Direct.
Nevertheless, some brokers are neither CIRO regulated or licensed that operate in Canada. While it is possible, these broker faces limitations because they still need permission from each regional regulator to operate effectively. Remember, the CIRO inspects and oversees all Canadian regional regulators.
Process to know if a broker is CIRO regulated
Whether you are a new or experienced trader in Canada before you start trading, you should verify if a broker is regulated or not. While several websites provide information in this regard, the only verified source you can use is the CIRO website.
You can confirm by using the search tab on the website to see the list of regulated brokers. All you need is the broker’s business name, and every information regarding the broker will pop up for you to see.
How does CIRO intervene in case of financial abuse?
Several discrepancies come to play in the financial market. Finding a win-win solution for both parties is essential. The CIRO uses discretionary power to issue fines and ban brokers who don’t adhere to the body’s regulations. That according to the scale and severity of the issue, a broker might have its membership revoked temporarily or permanently.
How CIRO can help you
The CIRO allows you to identify any illegal broker in Canada. Furthermore, the CIRO websites contain a list of approved forex brokers permitted to trade forex. However, if you discover any unlawful forex broker, you can inform the body to investigate the matter. You can navigate to the “Inquiries & Complaints” section to lay your complaint on the website.
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