Last update: 16 October 2020
8 min read

Best IIROC Forex Brokerages

If you need to find the best IIROC regulated brokers, our experts can help you. Below, we’ll explain what IIROC is and what it does. Plus, we’ll give you tips on safe online trading – and list the very best brokers currently regulated by the IIROC.

For those of you looking to trade in Canada, things can be a little confusing when it comes to regulation. There are a number of choices open to anyone living in Canada. The first option is to pick a broker regulated in Canada. The second choice is to choose a broker regulated in another jurisdiction. And finally, you could choose an unregulated broker – which, of course, we would never recommend. If you decide to choose a broker regulated in Canada, you need to be looking for one which is regulated by the IIROC.

Here’s our list of the best IIROC regulated brokers:



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Choose to trade with AvaTrade, and you’ll be choosing an award-winning broker that serves over 300,000 clients. Regulated by 9 different authorities, including the CBI and ASIC, and IIROC (via Friedberg Direct AvaTrade is one of the most reputable and secure brokers around. You can trade over 750 instruments in 8 asset classes. This includes currency pairs, stocks, indices, commodities, ETFs, and cryptocurrencies. The broker also boasts a great learning academy and a proprietary trading platform, making it suitable for all types of traders. Read review ›

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With quick execution, access to more than 4,500 assets, and a range of trading platforms, is a superior broker choice for any type of trader. It’s also easy to see why it’s considered one of the most trustworthy brokers around, as it boasts several top-tier licenses, a transparent fee structure and numerous global awards. At you can choose between three proprietary trading platforms or opt to use MT 4/5. You’ll also benefit from 25/6 customer support, educational materials and extensive trading tools. You can trade with USA here, and Canada here. Read review ›

Finding the best brokers regulated by IIROC

When it comes to finding the top brokers regulated by the IIROC, there are several factors to consider. Top of the list is safety and authority. Make sure the broker’s IIROC license is valid. You should be able to find evidence on the official IIROC site.

After that, take a look at the available options and decide which one feels right for you. Or, if you’re not sure, you can follow the advice of our experts.

Here are the best IIROC regulated brokers according to our experts:

  • AvaTrade

What IIROC regulated brokers are – and how they operate

Historically, there has been a lack of uniformity in the Canadian forex industry, leaving brokers with two sets of rules to follow. It was pretty obvious this wouldn’t work in the long term, so efforts were made to harmonize the regulations. A new set of rules were developed to help guide brokers, and direct the general conduct of trading in Canada.

A big part of the initial problem was in relation to the differences in classification. Specifically, which type of trading instrument foreign currency trading involved. Each provincial body had its own opinion, and thereby a different set of rules to follow. In Quebec, it was considered to be a derivative instrument. In British Columbia and Montreal, it was considered to be a security and came under a different set of rules altogether.

The new harmonized set of rules, developed by the IIROC and the three provincial bodies, have changed the way brokers in Canada do business.

Businesses intending to offer forex products in Canada have to be IIROC registered

Any Canadian brokers who want to provide forex trading services to Canadian residents must be registered with the IIROC. There is now an agreement as to what type of instrument foreign currency is, and that any firm performing a registrable activity is categorized as being an investment dealer. As such, brokers have to be IIRO members. And only IIROC regulated brokers can claim to be Canadian forex brokers.

One of the new rules put in place relates to margin requirements. All IIROC brokers are required to set a limit of 18:1. This is a much lower figure than the margin limits currently in place in the USA. It means that Canadian brokers tend to attract clients with much larger amounts to invest.

The provincial regulators also have their own requirements, in addition to being IIROC members. All sales people working for forex brokers in Canada have to be able to prove their proficiency in trading of forex contracts by way of certification. They have to be able to show they are qualified to be futures traders. Additionally, portfolio managers working in Canadian brokers have to be appropriately qualified. It’s not possible for just anyone to set up and manage accounts on behalf of individuals.

What is the IIROC?

Investment Industry Regulatory Organization logoIIROC stands for the Investment Industry Regulatory Organization of Canada. It is responsible for regulating Canadian financial markets at a national level. However, and here’s where it gets a little confusing, financial regulation is also done on a provincial level.

The bodies responsible for provincial regulation are the Ontario Securities Commission (OSC) which covers the Toronto region. The British Columbia Securities Commission which covers British Columbia and surrounding areas. And the Autorité des Marchés Financiers (AMF) which covers Quebec and Montreal. We should also point out that where the forex industry is concerned IIROC federal regulations will always take precedence over provincial ones.

What does the IIROC do?

There are a number of functions the IIROC has performed, including:

  • Writing rules which set high standards for the investment industry
  • Screening investment advisors employed by IIROC regulated firms. This is to ensure only those of good character, who are properly trained and have completed the required educational courses, programs, and background checks are employed by regulated firms
  • Setting minimum capital requirements and conducts financial compliance reviews
  • Performing reviews to check member firms have all the correct procedures in place for properly supervising the handling of client accounts, and that any advice provided is appropriate for individual clients needs
  • Performing reviews to check member firms trade-desk procedures and to ensure they are compliant with regulations
  • Investigating any misconduct from member firms and bring disciplinary proceedings if necessary. These could be penalties, fines, suspensions, permanent bans or termination of membership.

    How the rules make it safe to use IIROC regulated brokers

    The latest rules for trading haven’t gone down too well, despite the IIROC trying to enlighten traders and explain why the rules were put in place. Nevertheless, it seems a number of Canadian forex traders are choosing to trade with offshore brokers.

    The new rules and regulations have been put in place not just to ensure maximum security for client’s funds, but also to make sure it is only those with the money and thirst for such a risky investment that are able to trade in the forex market. A number of Canadian brokers have already made the necessary adjustments. And a select few have created new IIROC registered companies which operate independently of the parent company, and are specifically designed with Canadian traders in mind.

    What do I do if I need to complain to the IIROC?

    Experienced traders will know that some regulators make it very easy to complain about a broker, while others wipe their hands of any responsibility. Fortunately, IIROC falls into the former category.

    Before you contact IIROC, see if you can resolve the problem with the broker directly. If you can, this will be much faster and will save you plenty of hassle. However, if they’re being difficult, you can easily contact the IIROC by email, phone or via their online form which is specifically for complaints.

    Support at IIROC is multi-lingual and response times are fast, so you should have your problem resolved efficiently.

    How to check if a broker is IIROC regulated

    It is very easy for traders in Canada to check whether a broker is IIROC registered, with a quick search using the commission’s website. It is possible to perform due diligence as it provides a central registry with all the most important information regarding registration, approval, and disciplinary history.

    It is now possible for anyone intending to trade forex with an IIROC registered firm to feel confident they are making the right choice of broker. And in the long run, this shouldn’t be seen as a negative thing, because the safety, protection, and education of Canadian traders are at the very heart of the new rules and regulations.

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    Frequently Asked Questions (FAQs)

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