The very first banknotes were issued in Canada in by the Montreal Bank and soon became a primary method of payment.
Canadian Forex Brokers
Although there are some advantages of choosing brokers from Canada, traders should also be aware of a few drawbacks of Canadian Forex Brokers. Canada is one of the very few developed nations in the world that allow its citizens to invest their money with overseas FX brokers without a valid Canadian regulatory license. Canadian laws are pretty lenient towards financial firms, as it is not an absolute necessity for companies to be regulated by any formal Canadian authority to be able to entertain investors from Canada.
Such a move is designed to increase the competitive nature of the retail trading market, but it can also have severe shortcomings. For instance, the Canadian regulators will have no control over scam brokers that are located in other parts of the world, which can result in Canadian investors losing a ton of money. There is also no way by which a Canadian authority can impose sanctions on any other regulated broker, even if Canada has bilateral relations with that nation.
Therefore, to prevent such instances of financial fraud and scam practices, it is not uncommon for Canadian Forex traders to prefer FX brokers that are located in Canada. An authorized Canadian regulator has the job of regulating financial companies that wish to set up their base of operations in Canada. There are no exceptions to the fact that the concerned agency must regulate all companies operating on the Canadian soil.
Canadian financial market is divided into different territories that impose different regulations through multiple regulatory organizations. These different regulatory agencies have different duties as far as regulating different types of firms are concerned.
The following are the main Canadian regulatory authorities in charge of regulating companies:. Canada has the largest number of regulatory organizations in the world due to the lack of a central regulatory authority. Canada has conducted numerous case studies and has sought recommendations from experts to create a single regulatory authority that will be able to regulate and supervise all financial firms operating in the country.
Nevertheless, at present, Forex brokers in Canada are regulated according to the territory of operations. Existing Canadian laws state that any Forex broker can operate in Canada without a regulatory license. Of course, there are tax benefits and the renewed sense of trust from Canadian traders by getting regulated by a Canadian authority; however, the cost involved in setting up a company from scratch along with a confused Canadian regulatory structure can act as the primary deterrent for brokers.
The ultimate aim for any business would be to achieve consistent profits, which can only be gained through a stable marketplace.
The Canadian regulatory structure is still in its primitive phase, and there is a lot of uncertainty surrounding the future course of action regarding the regulation of financial entities. It is also common among Canadian traders to choose international FX brokers according to their trading requirements. The main responsibilities this agency has are to collect and analyze facts and problems as the Canadian market, as well as to prevent money laundering, to provide and deprive the Canadian Forex brokers with licenses and etc.
While it is working, reacting to the different requirements and signals, the Financial Transactions and Reports Analysis Centre of Canada is allowed to react as to all the suspicious transactions, suspected terrorist property, large cash transactions, electronic funds transfers and etc. Ontario Securities Commission — known by the abbreviation OSC — is not a government, but an independent Forex regulator agency, which covers Ontario legislation territory.
The Ontario Securities Commission administers and enforces securities law in the province of Ontario. The mandate of the OSC is to provide protection to investors from unfair, improper and fraudulent practices, as well as to foster fair and efficient capital markets and confidence in capital markets. Currently, this commission has 10 commissioners, who are in charge to protect the personal data, the finances and the brokers from different cases of scams or frauds.
This controlling agency is entirely self-funded, which makes it very popular among the traders, who prefer to enforce their signals to more independent regulation agencies. Do not hesitate to test a Canada Forex broker, guys! They are safe and quite profitable — especially if you already have a good established strategy for amazing outcomes!
Good luck with the search for the most suitable for you broker! Find Good Forex Brokers in Canada Forex brokers might be distinguished in many ways, but the main criterion is usually their residence. Can Forex traders from Canada trade in any broker they want? Brokers are aware that even the best spreads are sometimes not enough to motivate many new traders. That is why they offer a bonus, sometimes even more than one.
Generally, we can distinguish between:. A No Deposit Bonus is usually paid out to new traders, and, as the name suggests they are not even required to make a deposit first. The Deposit Bonus is usually a percentage match e. Other promotions may include tournaments, where the winner can earn a pretty hefty amount of money.
Other things should also be taken into consideration. For example, most brokers accept at least a few different payment methods. Some of them may be exclusively available to Canadian traders, whereas other are international payment methods, like popular e-Wallets or major credit or debit cards.
It is important to check whether the forex broker that you like to trade with charges any extra fees on deposits and withdrawals. Furthermore, it is also important whether payments are processed quickly or not.
Forex trading is a serious business, it is far from and it is always wise to prepare yourself as much as you can, and learn as many useful things as possible. Brokers usually offer learning materials, including recorded videos, charts, analytics data, e-books, articles and some even organize special webinars that teach traders about forex.
The more informative and detailed their teaching material is, the better chance you have of becoming better at trading forex. If you encounter any problems regarding trading, or your account, you would surely want to resolve them as quickly as possible. That can usually be done either via email, phone, or live chat. The legal status of forex trading in Canada is quite clear, Canadians are legally allowed to trade forex. The IIROC is overlooked and monitored by Canadian Securities Administrators CSA an umbrella organization which provides support to a range of federal and provincial organizations and its aim is to coordinate and harmonize the regulation of the financial markets of Canada.
It is sufficient to know that every broker that wants to offer services in Canada needs to go through the legal filter provided by the organizations named above. It depends on the broker and the offer in question. Sometimes the bonus is awarded automatically, to every trader who meets the criteria, whereas at other times traders might be required to opt in in order to receive a bonus. Is it more favourable for Canadian traders to trade currency pairs that include the Canadian dollar?
There is no restriction in terms of what currencies you can trade.