Can anyone recommend to me any good forex brokers in alberta?
Because apparently there some regulations or something?
Yes, in Alberta, in order to open a Forex trading account, you must qualify as an “accredited investor”.
For an individual to be considered an accredited investor for the purpose of NI 45-106 they must meet either an income test or financial asset test. The individual must either (1) have made at least $200,000 each year for the last two years ($300,000 with his or her spouse if married) and have the expectation to make the same amount this year; or (2) have financial assets exceeding $1 million (excluding primary residence); or have net assets of at least $5 million (including net value of primary residence).
If you live in Alberta and don’t meet those requirements, what are your options?
Currently, nothing. It’s not wise to try to find any loop holes around the law, especially with money.
Who enforces this and what are the penalties? Are the penalties for the investor, or the broker?
I’ve seen workarounds suggested such as using an offshore broker, or buying $1M of life insurance. Are these legal? (Assuming I report the income and pay tax on it.)
ASC, enforces this. The exact penalties I am not sure. Both parties would take the blame, with the broker taking a larger hit.
Most brokers nowadays are aware of this and will not accept Canadian accounts unless it’s confirmed the investor is an Accredited Investor, including most offshore brokers as well.
I have no experience with the life insurance, but I would urge not to try to sidestep the regulations. Do your own research, perhaps it is legal.
I agree with Clark that you should not try to find loopholes and sidestep regulations in your country. There are always legal ways around it, but as Clark suggested you need to do your own research and maybe consult a legal as well. One popular way around it is to go with an unregulated offshore broker, but again should make sure it is legal before you do anything.