At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.
In order to rank the best IIROC brokers we have taken into consideration a range of factors including:
- An active IIROC license;
- The commissions charged on forex;
- The general quality of the broker;
- The deposit/withdrawal currencies accepted.
- Forex.com: deep liquidity provided
- AvaTrade: fixed spread trading
- FXCM: top service quality
- Oanda: best for beginner traders
- CMC Markets: best for CFDs trading
- Interactive Brokers: wide range of available markets
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
- Forex.com is regulated by IIROC as FOREX.com Canada Limited.
- Available in the whole of Canada except Alberta where only accredited investors are eligible for trading online.
- com under IIROC provide access to nearly 3,000 assets for canadian traders including more than 80 forex pairs charging spreads from 0.8 pips on EUR/USD.
- Unfortunately, CAD is not selectable as a base currency nor is french as the website language, apart from some document sheets.
- There is no local office in Canada, instead the registered office is in Bedminster One, 135 US Hwy 202/206, Suite 11, Bedminster NJ 07921.
73% of retail CFD accounts lose money
- AvaTrade provides its services in Canada through Frieberg Direct, a division of Friedberg Mercantile Group Ltd., member of IIROC, and holder of the trading accounts.
- Traders from Alberta need to be qualified as accredited investors to open an account with AvaTrade.
- The website is provided both in English and French.
- AvaTrade under IIROC offers a hundred tradable assets all as CFDs including more than 30 forex pairs.
- AvaTrade charges only fixed spreads and on forex, these starts from 0.6 pips for the EUR/USD.
- CAD is accepted as the account currency and you need to deposit 300 CAD to open an account, though if you opt for a USD account then only $250 is required.
(79% of retail CFD accounts lose money)
- FXCM operates in Canada through an IIROC member, Friedberg Direct.
- Just like the above case of AvaTrade, FXCM doesn’t own a local office in Canada but is still able to provide services to all residents. As always, traders from Alberta must be classified as accredited investors.
- The only language available on the website is English.
- The FXCM IIROC entity provides fewer assets than competitors with around 100 CFD assets of which more than 40 are forex pairs with spreads from 0.2 pips on EUR/USD.
- The active trader program is designed for high-volume traders with at least $50 million traded monthly and a balance of $25,000. These traders can reduce spread costs by up to 60%.
- Traders can deposit funds and open accounts in both USD and CAD though the minimum deposit to open any new account is 5,000 CAD or USD.
71% of retail CFD accounts lose money
- OANDA (Canada) Corporation ULC is the entity regulated in Canada by the IIROC.
- Canadian traders will find access to 120 CFDs of which more than 70 are forex pairs.
- Spreads on forex start from 1 pip on EUR/USD while the leverage available is up to 1:50 as imposed by the IIROC.
- CAD is accepted both as the account currency and for deposits.
- Oanda is available both in English or French for all Canadian traders except those from Alberta that require to be classified as accredited investors to register with the broker.
- Local office is situated in Toronto, Ontario.
73.5% of retail CFD accounts lose money
5. CMC Markets
- CMC Markets Canada Inc. is the Canadian entity of the broker regulated by IIROC.
- Trade over 10.000 financial instruments including more than 330 forex pairs with spreads from 0.7 pips.
- Cash rebates program for Canadian traders who trade at least $10 million per month in order to get up to 20% discount on spread.
- The Canadian dollar is eligible for deposits and along the USD is the base currency of your account.
- CMC Markets IIROC is available in every province, however in Alberta it is available to accredited investors only. Canadian residents however can’t choose french.
- The local registered office of the broker is in Toronto, Ontario.
Visit CMC Markets
78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
6. Interactive Brokers
- Interactive Brokers is a regulated dealer in Canada by IIROC as Interactive Brokers Canada Inc.
- The Canadian dollar (CAD) is among 23 currencies for account funding and serves as the base currency for accounts as well.
- Traders here have access to more than 100 global markets for around 7,000 assets of which you can trade more than 100 forex pairs at low spreads since they start from 0.2 pips on EUR/USD.
- Being compliant with the IIROC, the broker is able to accept traders from all ofCanada but the province of Alberta where only accredited investors can apply.
- Canadian traders have the choice of English or French for the language of the website.
- local office of the broker is situated in Montréal, Québec.
Visit Interactive Brokers
74-89% of retail CFD accounts lose money
What is the IIROC?
The Investment Industry Regulatory Organization of Canada (IIROC) is the national regulatory organization responsible for overseeing all investment and trading activities in Canada. The Organization was founded in 2008 through the merger of the Investment Dealers Association of Canada (IDA) and the Market Regulation Services Inc.
The IIROC 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.
IIROC 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 IIROC||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 the IIROC work?
The IIROC 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 IIROC 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 IIROC serves as a body that regulates the activities of forex trading. Here is a link to check the verified Canada forex brokers approved by IIROC.
Characteristics and benefits of IIROC
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 IIROC is that securities are held in segregation by a Dealer member for a client. However, members are not protected from any negative balance.
Prohibitions with IIROC
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 IIROC 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 IIROC Regulated and IIROC Licensed Brokers
To be a regulated forex broker in Canada, you need to have an IIROC 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 IIROC 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 IIROC inspects and oversees all Canadian regional regulators.
Process to know if a broker is IIROC 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 IIROC 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 IIROC 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 IIROC 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 IIROC can help you
The IIROC allows you to identify any illegal broker in Canada. Furthermore, the IIROC 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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