Best IIROC Regulated Forex Brokers

logomark Filippo Ucchino calendar Last Updated: November 2021 timer 11 min read
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For retail forex traders based in Canada, the biggest challenge is finding a great regulated forex broker in canada. The risk of using a non-regulated broker is exceptionally high, with only a few authorities ensuring the industry’s standard is kept. Financial regulation is an important part that requires utmost supervision, restrictions, and guidelines.

Forex market regulations refer to laws and rules that firms operating within the financial industry must adhere to in serving customers. The purpose of setting regulatory bodies is to checkmate brokers’ activities and protect traders from fraud and financial risk.

Given that, the Investment Industry Regulatory Organization of Canada (IIROC) is responsible for the strict compliance of all regulations in Canada’s financial market. In this write-up, we will expound on the functions and objectives of the IIROC and explore a few of the highly regulated forex brokers in Canada.

Table of contents

What is the IIROC?

The Investment Industry Regulatory Organization of Canada (IIROC) is the national self-regulatory organization responsible for overseeing all investment and trading activities on Canada’s debt and equity marketplace. 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 firm trading within Canada.

Top 6 best IIROC Regulated Forex Brokers

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73% of retail investor accounts lose money

1. Forex.com

Forex.com is a regulated forex broker in Canada. The IIROC regulates its activities and ensures it meets every requirement in the forex industry. It offers a fixed spread with floating starting at 0.2 pips. Furthermore, new traders can take advantage of the demo account, which lasts for 30 days; for experienced traders, a minimum of $50 deposited in your trading account gives you access to trade over 4,500 assets.

Forex.com is suitable for new traders, active forex traders, and MetaTrader 4 users because of its easy-to-navigate platform. If you love trading currency pairs, then you have access to over 80 currencies pair to buy and sell. Additionally, it offers leverage up to 50:1 while fully supporting Algo-trading.

Forex.com offers 3 methods for traders to contact its support team to ensure they receive a swift response to their various issues. You can chat, send an email, and phone their support team. Interestingly, US residents can trade forex with forex.com.

Finally, it provides educational and research materials for all traders. It offers live webinars, native research tools, and trading courses for all levels of traders. The only drawback to this broker is that it doesn’t allow traders to trade other securities such as bonds and stocks.

81
Rated: Excellent
Security 95
Cost 69
Trading 75
Education 82

Platforms: MT4 Dekstop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform Regulations: FSA, FCA, CFTC, MIFID-ESMA, IIROC, SFC, CYSEC, Offshore Minimum Deposit: 100
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73.50% of retail investor accounts lose money

2. Oanda

Oanda offers traders both standard and commercial access to trading. The broker has more than 70 currency pairs with a comprehensive platform that offers different charting tools and indicators. Furthermore, its intuitive trading platform layout makes it a perfect option for beginners.

Oanda is a highly reputable broker in Canada; it is regulated by the IIROC and founded in the United States. Oanda has carved a niche for itself in the forex industry with a floating spread from 0.6 pips.

Despite having the best platform for new users, it offers mobile trading for traders to trade the market on the go. To ensure new traders get a firm grip of the market, it provides unlimited demo account to hone their skill. You can start trading with any deposit amount for experienced traders as there is no minimum deposit required. Additionally, it offers a very low trading size with over 100 tradable assets in the forex market.

Nevertheless, the only two significant drawbacks to Oanda is that it only offers forex trading assets with no retirement accounts for traders. Despite this, it has made a name for itself in the industry.

80
Rated: Excellent
Security 94
Cost 70
Trading 71
Education 80

Platforms: MT4 Dekstop, MT5 Desktop, MT5 Web, Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: FSA, MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC Minimum Deposit: 0
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80% of retail CFD accounts lose money

3. CMC Markets

CMC is a formidable broker that is competing with top-notch forex brokers in the industry. In Canada, the IIROC regulates its activities. CMC is a London-based DMA broker that offers spread as low as 0.3 pips. In the United Kingdom, it offers spread betting, which comes with tax benefits.

CMC Markets allows traders to trade several financial assets, including commodities, cryptocurrencies, forex, indices, government securities, exchange-traded funds, and shares. Interestingly, it provides a free unlimited demo account to everyone within the industry. Additionally, there is no minimum deposit for opening an account with the broker.

For forex traders in Canada, CMC Markets, you can take advantage of its different cash rebates to minimize trading costs. With the advancement in trading, CMC Markets still lag in certain areas, such as allowing only CFD trading, spread betting for only UK residents, and no social trading.

Notwithstanding, the wide range of tradable assets, user-friendly trading platform, educational and research resources makes it the go-to platform for trading forex in Canada. Overall, its customer service is commendable with swift response to issues faced by customers. If you are a new trader in Canada, you can consider using CMC Markets because of its unique packages for new traders.

80
Rated: Excellent
Security 95
Cost 61
Trading 75
Education 81

Platforms: Proprietary Web Platform Regulations: MAS, FCA, MIFID-ESMA, ASIC, IIROC, FMA, CBRC Minimum Deposit: 0
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74-89% of retail CFD accounts lose money

4. Interactive Brokers

Interactive Brokers is regulated in Canada by the IIROC; it offers a comprehensive trading platform that allows traders to trade different securities at a cheaper price. It mainly focuses on stockbroking but offers other financial assets such as shares, bonds, and forex pairs.

Interestingly, Interactive Brokers allows traders all over the world to trade different financial assets from their homes. To buy or sell any financial instrument, traders are not required to pay any commission. You can start trading with whatever amount you wish to begin with because no minimum deposit is required.

Furthermore, it provides different educational content and analysis tools to navigate through the market. With leverage up to 1:50, traders can open large positions. In a competitive industry like the forex industry, what has been the edge for Interactive Brokers is its low margin rates, comprehensive and quick desktop platform, access to different tradable assets, and responsive customer service.

80
Rated: Excellent
Security 95
Cost 71
Trading 71
Education 75

Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC, SEC, CYSEC, Offshore Minimum Deposit: 0
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79% of retail investor accounts lose money

5. AvaTrade

AvaTrade caters to the need of different groups of traders with several tradable financial assets. The simple and intuitive interface and the ever available customer support team make it a popular platform for beginners. However, advanced traders have access to different trading platforms with adequate technical tools to analyze the market.

The IIROC doesn’t directly regulate AvaTrade by Friedberg Direct holds every account opened. Friedberg Direct is a division of Friedberg Mercantile Group Ltd., which is a member of the Investment Industry Regulatory Organization of Canada. AvaTrade is an Irish market maker with fix spread that starts with 0.9 pips. It offers traders leverage up to 1:50.

Traders have access to over 200 available assets with a demo account that lasts for 21 days. The minimum deposit allowed is $100 with social copy trading facilitated using a proprietary platform. Opening an account is quite simple; you can complete the process using your first name, last name, email, and phone number. Another option is to log in through your Google or Facebook account. Once verified, you can fund and start trading.

Furthermore, the broker offers several deposit methods, including Skrill, Neteller, Webmoney, and credit card. E-Payment takes within 24 hours, whereas wire transfer takes a maximum of 7 business days. It depends on your country and bank.

82
Rated: Excellent
Security 94
Cost 78
Trading 75
Education 72

Platforms: Mirror Trader, ZuluTrade, MT4 Web, MT5 Web, Proprietary Web Platform, MAC Platforms Regulations: FSA, MIFID-ESMA, ASIC, IIROC, FSCA, Offshore, FSC (British) Minimum Deposit: 100
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67% of retail investor accounts lose money

6. FXCM

Similar to AvaTrade, FXCM is also not IIROC regualted. However, Friedberg Direct opens and holds the account. FXCM has varieties of tradable assets with over 27 currency pairs, 9 commodity CFDs, 13 index CFDs, and cryptocurrencies. Compared to other brokers, it has limited assets but reasonably sufficient for traders at all levels in trading.

It offers different spreads depending on the program. The active trader program has spread from 0.1 pipes, whereas the regular trader spread begins from 1.3 pips. While the forex market is experiencing new traders daily, the broker offers new traders free access to its unlimited demo account. These traders can hone their skills using the unlimited demo account, which is a selling point for its platform.

However, to use its live account, you need to register and fund a minimum of $50. With this, you can trade over 100 financial assets with advanced trading tools and materials. Despite having high trading fees, its extensive range of platforms and educational materials compensate traders for sticking to FXCM.

81
Rated: Excellent
Security 94
Cost 73
Trading 73
Education 83

Platforms: ZuluTrade, MT4 Dekstop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform Regulations: FCA, ASIC, FSCA Minimum Deposit: 50

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
Forex.com Yes No $50
Oanda Yes No No minimum deposit
CMC Markets Yes No No minimum deposit
Interactive Brokers Yes No No minimum deposit
AvaTrade No No $100
FXCM No No $50

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.

Proess 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.

IIROC Regulated Forex Brokers FAQs

The best forex brokers in Canada?

Considering our research of the best forex brokers in Canada, using various criteria, the best IIROC regulated brokers are forex.com, Oanda, CMC Markets, Interactive Brokers, AvaTrade, and FXCM.

Who regulates IIROC?

The primary purpose of the IIROC is to regulate all investment firms in Canada, which includes forex brokers.


About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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