3 Best IIROC-Regulated Forex Brokers for 2024

List of Top IIROC-Regulated Forex Brokers

What is IIROC?

The Investment Industry Regulatory Organization of Canada (IIROC) is a key regulatory body overseeing investment dealers and trading in Canadian markets, including forex and CFD trading. As a non-profit, national self-regulatory organization, IIROC’s primary role is to protect investors by enforcing strict operational standards, ethical conduct, and financial reporting for its member firms.

Forex and CFD brokers in Canada must be licensed by IIROC, ensuring compliance with rigorous capital requirements and risk management protocols. IIROC closely watches market activities to prevent unfair trading practices and market manipulation. It also offers educational materials to help investors understand forex and CFD trading better and provides a way to resolve complaints against its regulated brokers.

How did FXEmpire select the Best IIROC-Regulated Forex Brokers?

• We confirmed each broker is regulated by IIROC by checking their licenses.
• We checked each broker does accept Canadian residents by opening an account from Canada.
• We researched the brokers’ deposit options to ensure you can have the Canadian Dollar (CAD) as a base currency to trade with.
• I verified if the CAD is available as a base currency and for deposit and withdrawal.
• We tested the live spread of different instruments for each broker by opening a live account to check their competitiveness.
• We explored and tested the trading platforms of each broker to ensure they were user-friendly and feature-rich.

Our team of experts has identified brokers’ strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s dive into the selected brokers.

Our Methodology

FX Empire pioneered the broker rating review industry. Since then, our rating reviews have been enhanced and optimized as the financial market industry has changed over time as well. Our review procedures now encompass over 250 research data points, covering nine core categories:

• Trust: We check the broker’s regulatory status, reputation, and license to operate.
• Fees: We open live trading accounts to test the transparency and competitiveness of a broker’s trading fees.
• Trading platform and tools: We test the broker’s trading platforms and tools for their features and usability.
• Tradable instruments: We research the number of tradable instruments available to see how diverse the broker’s offering is.
• Customer support: We test the knowledge of customer support agents and how quickly you can access customer support.
• Deposit and withdrawals: We explore the different deposit and withdrawal methods and check the fees and processing times.
• Account types: We evaluate the account types available and check the execution method, minimum deposits, and suitability for beginner to advanced traders.
• Research and education: We assess how good the broker’s market research and educational resources are.

For this guide, we took a multifaceted approach to ensure the brokers met the essential criteria for Canadian traders. First, we confirmed that each broker is regulated by IIROC by verifying their licenses, and made sure they accept Canadian residents by successfully opening accounts from Canada. We also researched the brokers’ deposit options to verify the availability of the Canadian Dollar (CAD) as a base currency for trading as well as checked if the CAD could be used for both deposits and withdrawals. To gauge competitiveness, we tested the live spreads of various instruments by opening live accounts with each broker. Finally, we thoroughly explored and tested the user-friendliness and feature richness of each broker’s trading platform.

Meet Our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

How to Choose a Forex Broker Regulated by IIROC?

Below are a few things to consider when choosing the best forex broker regulated by IIROC.

How does IIROC protect traders?

In regards to forex and CFD trading, Canada’s regulator has tried to move more in line with the framework established by the European Securities and Markets Authority (ESMA). Here are some key requirements for IIROC-regulated brokers:

• Be part of the Canadian Investor Protection Fund (CIPF). This is a government-backed compensation scheme that can reimburse investors up to CAD 1 million if the broker becomes insolvent.
• Segregation of client funds. IIROC requires all of its regulated brokers to segregate client funds from their own funds. This ensures the broker is not using your capital for their daily operations.
• Leverage caps: IIROC sets limits on the maximum leverage offered, which currently stands at 1:50 for major currency pairs and 1:20 for minor pairs.

Check out our guide on Best forex brokers in Canada.

How to check the regulatory status of the broker?

The reason why picking a regulated broker is important is because they oversee and supervise the activities of a broker to ensure they adhere to high standards regarding the safety of your capital.

Verifying the regulatory status of a broker regulated by the Investment Industry Regulatory Organization of Canada (IIROC) is a critical step for ensuring your trading activities are secure and compliant. Here’s a step-by-step guide:

• Broker’s Website: Start by visiting the broker’s official website. Reputable brokers will typically display their regulatory affiliations, including IIROC membership, usually at the footer of the homepage or in a dedicated “About Us” or “Regulation” section.
• IIROC Online Register: To cross-verify, go to the IIROC’s official website and navigate to their online register, often called the “AdvisorReport” or similar. Here, you can search for the broker’s name to see if they are listed.
• Check Details: Once you find the broker listed on IIROC’s register, look for additional details such as registration date, any past violations, and the products they are authorized to offer.
• Contact IIROC: If you have any doubts or need further clarification, don’t hesitate to contact IIROC directly. They can provide additional information about a broker’s regulatory status.
• Check for Updates: Regulatory statuses can change. Make it a habit to occasionally recheck both the broker’s website and IIROC’s register to ensure that the broker maintains its regulatory status.

Read more about Best regulated forex brokers.

What fees should you consider?

Typically brokers charge a variety of trading and non-trading fees that you should be aware of before opening a trading account. The list includes:

• Spreads: This is the difference between the bid and ask price. You want this to be as low as possible.
• Commissions: This is a fee to buy and sell. Again, you want this to be as low as possible.
• Swap fees: Swap fees occur when you hold a leveraged position overnight. They vary depending on interest rates and a broker markup.
• Inactivity fees: If no account activity has taken place for a certain number of months, a broker may charge an inactivity fee.
• Deposit and withdrawal fees: These are fees for depositing and withdrawing funds and vary depending on the payment method.

Low trading fees are certainly a plus, but transparency takes precedence; any attempts by a broker to obscure details should raise immediate concerns. A reputable broker will always clearly list all associated fees on its website. To get a feel for trading with a particular broker without any financial risk, consider starting with a demo account.

Check out our guide on Best lowest spread forex brokers.

How to choose the right account type?

Most brokers offer different types of trading accounts that are generally separated by trading fees. A commission-free trading account generally has a higher spread, while a commission-based trading account offers a lower spread.

Many of the IIROC-regulated brokers discussed above such as OANDA, CMC Markets, and Forex.com also provide active trader accounts. These accounts reward high-volume traders with cash rebates, thereby lowering the overall trading fee.

The broker should have an account page that highlights the similarities and differences of each account. Go through it in detail to make sure you choose the right account type for your needs. You may also be able to test each one with a demo trading account which will be worthwhile.

Read more about Best forex STP accounts and Best forex ECN accounts.

How to choose a relevant leverage?

One reason forex and CFD trading accounts have gained popularity in Canada is the availability of leverage through IIROC-regulated brokers. For major forex pairs, you can access leverage up to 1:50, while minor pairs offer up to 1:20. In practical terms, this means that with leverage of 1:50, you can control a $5,000 position with just a $100 deposit. When it comes to commodities and stocks, the available leverage is generally lower, ranging from 1:5 to 1:20 for commodities and up to 1:3 for individual stocks.

Your profits and losses are calculated based on the total value of the trade, not merely the margin you’ve put up. If the market moves against you to the extent that your margin is insufficient to keep the trade open, you could incur losses exceeding your initial deposit. That’s why regulatory bodies like IIROC set leverage limits aimed at risk mitigation; it’s crucial to stay updated on these guidelines by consulting your broker or IIROC directly.

Unfortunately, IIROC does not make it a legal requirement to provide negative balance protection as regulators such as the UK FCA, ASIC, and CySEC do. This is also why IIROC restricts the amount of leverage offered to retail clients.

Canadian traders can also use non-IIROC-regulated or offshore brokers that may offer leverage ratios as high as 1:500 or even 1:1000. While this higher leverage can amplify profits, it also exponentially increases the risk involved. Hence, if you opt for a non-IIROC-regulated broker, exercise extreme caution, especially concerning leverage and risk management.

Find out our picks of Best high leverage forex brokers.

How to choose a trading platform?

Nowadays, brokers offer a range of different trading platforms to trade from. Some of the most common in the industry trading platforms include:

• MetaTrader 4 (MT4): A widely-used platform known for its user-friendly interface, robust technical analysis tools, and capabilities for algorithmic trading. Read more about Best MT4 forex brokers.
• MetaTrader 5 (MT5): An enhanced version of MT4, offering additional timeframes, more technical indicators, and expanded support for trading various financial instruments. Read more about Best MT5 forex brokers.
• cTrader: Geared towards advanced traders, this platform features Level II pricing, a diverse range of order types, and a more intuitive user interface compared to MT4 and MT5. Read more about Best cTrader forex brokers.
• TradingView: Unique for its social networking focus and community-driven content, this platform offers robust charting tools and a broad range of financial markets, catering to traders of all experience levels. Read more about Best TraringView forex brokers.

Additionally, many brokers develop their own proprietary trading platforms. All the IIROC-regulated brokers discussed in this article have such platforms that come with even more features and tools than some of the more common third-party platforms so be sure to check them out.

Check out our dedicated guide on Best forex trading platforms.

What to avoid when choosing a forex broker regulated by IIROC?

As forex trading is growing rapidly in Canada, there are many brokers who are now competing for your business. Unfortunately, this will also involve some scam brokers who may say they are regulated by IIROC but are not. Therefore, there are several pitfalls you should steer clear of:

• Unclear Fee Structure: Ensure the broker provides complete transparency when it comes to fees, including spreads, commissions, and any additional charges.
• Unregulated Brokers: Traders in Canada can also trade with other international brokers. However, you need to be careful as some brokers may advertise their services in Canada but when you open an account it redirects to an entity based on an offshore island that is unregulated.
• Poor Customer Support: The broker should offer robust customer support, preferably 24/5 or even 24/7, that can address your queries and concerns in a timely and professional manner.
• Insufficient Asset Range: While forex might be your main focus, it’s often beneficial to diversify your portfolio. Brokers offering a narrow range of assets can limit your trading strategies.
• Lack of Risk Management Tools: Always look for brokers offering risk management features like stop-loss orders, negative balance protection, and guaranteed stops to help manage your trading risks effectively.
• Complicated Withdrawal Process: Always check reviews and test out the broker’s deposit and withdrawal procedures to make sure they are straightforward and reliable.

How to avoid forex and CFD scams?

There are a few things you can do to avoid forex and CFD scams, including:

• Stick to regulated brokers: Always trade with a broker regulated by a well-known financial authority.
• Confirm a physical address: Make sure your broker has a physical address you can visit (even if you don’t intend to). If they don’t it’s a major red flag.
• Speak to customer support: If you can’t speak to a live customer support agent using a standard telephone number it’s a major red flag that the broker is a scam.
• Search your broker online: By Googling your broker online, you can perform a reputation search and check there are no news reports of any issues relating to them.
• Only use well-known payment methods: Stick to well-known payment methods. If you’ve never heard of the payment method before it’s most likely a red flag to avoid them.

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