If you're interested in trading Forex in Canada, you probably want to know if it is legal for you to do so. With your capital at risk, the last thing you want is trouble with the law. Fortunately for you, we've done the research for you, and found that it is 100% safe for you to trade Forex in Canada.
The laws for trading Forex in Canada not as clearly defined as they are in other countries. This is because there is no authority for it on a federal level. Each province has its own legislation and authorities.
The Federal government has attempted to establish a financial regulatory authority in the past. An Act was proposed in 2010, but was not passed. Here is an excerpt from it:
"The proposed Canadian Securities Act (proposed Act) represents one key step towards the Government of Canada’s longstanding commitment to establish a Canadian securities regulator."1
For now, Canadians hoping to try Forex, CFDs, spread betting and binary options must put their trust in foreign regulators such as CySec of Europe, the ASIC of Australia, the FCA of the UK, or independent organizations in Canada such as IIROC. While the provincial commissions "make rules for the purpose of regulating trading in securities or exchange contracts",2 they are not always applicable to online trading. You can search for the links to each provincial securities commission authority.
While the provincial legislation have the common goal of protecting investor interests, they are not all the same. In some cases they are not clear, and operators will allow clients in some provinces, and restrict them in others. One example is XM, which allows registrations in all provinces except for British Columbia, Quebec and Saskatchewan.
Now that you have a better understanding of the legality of trading Forex in Canada, it's time for you to choose a trading platform to make an investment with. We have created a list of the top Forex trading brokers for Canada. Have look at that, and feel free to contact if you have any questions or concerns.
Sources:
1. Proposed Canadian Securities Act
2. BC Securities Act (1996)
Last updated: 05/30/2017 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
