First post here on babypips, but i have read a ton of good information going through the pipsology school so I figured this would be a great place to ask questions as well. I have done very well in my crypto trading the past 5 months but i feel it is time to switch to were the big boys trade, Forex. Being based in Ontario, Canada, the Forex brokerage market seems to be restrictive at best. That being said I am wondering who my fellow Canadians use as a broker? From my understanding to be a legitimate brokerage in Canada they have to be regulated by the IIROC. I would prefer to find an ECN broker because having depth charts and live market orders seemed to be very beneficial in crypto trading. All signs and research seem to be pointing me to OANDA (which is a market maker i believe) but i figured i ask someone who has more experience in the matter then i do. I like to do things legitimate and pay my taxes on all profits, but i just cant stomach going through an offshore brokerage with very little protection in case something goes wrong.
Thanks in advance for any replies I get
happy trading!
My opinion. Don’t be concerned so much where a broker is from. Be more concerned about: how long they have been in business; what are other traders who are trading with them opinions, are your funds in a seg fund, how good or bad there customer service is, is there any complaints filed against them, how helpful is your rep.
Again my opinion
Gp
Thanks for the input Gp, I have found a lot of well reviewed non canadian brokers online but most of them have barred canadian citizens from use. Do you use an ECN or market maker brokerage if you don’t mind me asking?
Not all: Canada has strict rules on leverage among other rules designed to protect Canadian investors from blowing their money. From their site:n (The Investment Industry Regulatory Organization of Canada is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. IIROC sets high-quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.) Any broker that wants to do business with Canada has to do so through their rules. Whether or not it’s a good idea or not is a discussion for another thread.
For example, many Australian brokers have recently barred Canadians from having accounts; One of my trading accounts is with an Australian broker. Their max leverage is 200%. Their min deposit is $500, they’ve been in business over 6 years. The latest broker as far as I know to bar Canadian Traders is IC Markets. Been in business about 8 years, min deposit $200 Max Leverage is 500%. I believe Pepperstone is another broker that doesn’t except Canadian Traders. Again Been in business for about 7 years, min deposit $200.00, but leverage is 500%. I have also talked to UK brokers that don’t except Canadians cause they offer 500% leverage. Like I said don’t know if leverage is the case, its just what I heard.
I have both ECN and STP accounts. I have never used a Market Maker from day one of my trading. This is ONLY MY OPINION:NOT FACT.(Sorry don’t want to hear from those who do use MM or MM reps). I like going straight to the market or at least the feeling of going straight to market as opposed to MM. Again only my opinion. Someone told me there is always someone on the other side of your trade; there has to be: that’s true however I prefer the other side of my trades to be random, not the broker.
In my case I’m not so concerned over ECN or STP,. In my case I look for: where they’re from, how long in business, regulate and by who, trader and broker reviews (more traders) complaints filed, previous and active, what kind of traders are they trying to attract, customer service & whats my rep like and how, accessible are both, do they offer MT4/MT5, are they Introducting Broker, Independent Broker or bank, premium conditions, my funds kept in a seg fund.
That’s pretty much it. Bottom line do your research now, so based on the balance of probabilities, you won’t be unpleasantly surprised later.
Appreciate all of the information Gp it was very helpful, i will keep going with my research and maybe talk to a few reps to make sure they take canadians. Can you elaborate on seg fund pros and cons?