CIRO Regulated Forex Brokers - List
The world of forex trading is both exciting and challenging. Selecting a broker that presents just the right fit can be a difficult undertaking. One of the best bets when selecting a broker is to go for one with regulations in your jurisdiction or from other reputable jurisdictions. For Canadian traders, the Canadian Investment Regulatory Organization (CIRO) plays a crucial role in ensuring a fair and transparent trading environment.
In this article, we will look at some of the best CIRO regulated forex brokers in the world. We will mention their trading conditions including spreads, trading platforms, and collection of market instruments. Let’s jump in.
Understanding CIRO Regulation
Before we dive into the list of the best CIRO-regulated forex brokers, let's take a moment to understand the significance of CIRO regulation. The CIRO is the national self-regulatory organization (SRO) that oversees forex brokers and trading activity in Canada. It is a non-profit organisation that works to protect investors and maintain the integrity of the Canadian financial system. The CIRO was established to act as the successor to IIROC and the MFDA. Note that the IIROC’s website is still active but the two organizations are one and the same. Therefore, any broker regulated by the IIROC is regulated by the CIRO.
CIRO-regulated brokers adhere to strict regulatory standards. The regulator ensures that they operate with transparency, fairness, and accountability. Therefore, choosing a regulated forex broker in Canada is key for the security and fair treatment of traders. Fortunately, CIRO allows traders to crosscheck broker regulations by searching the company’s name on the IIROC website. If a company is indeed regulated, it will appear under the search as a regulated dealer.
With that short description out of the way, let’s now look at some of the best CIRO-regulated forex brokers.
Forex.com has been empowering traders globally since 2001. Its longevity in the market while offering top-tier services is a remarkable feat. Moreover, this broker is regulated and authorized by major regulatory bodies globally. In Canada, the broker is a member of the CIRO and a member of the Canadian Investor Protection Fund. This means that it is subject to examination and supervision by the CIRO. Notably, the broker is also regulated by the FCA in the UK, the CySEC in Cyprus, and is registered with the CFTC and a member of the NFA in the USA.
The trading platforms available on this broker site are noteworthy. Particularly, traders can choose from three main trading platforms. These include MetaTrader 4, MetaTrader 5, and TradingView. The platforms give traders access to a plethora of market instruments. Specifically, traders have access to forex alongside CFDs on indices, stocks, ETFs, and commodities.
Further, traders in Canada have three main trading accounts to choose from. These include the standard account, the raw pricing account, and the MetaTrader account. The standard account and the MetaTrader account are virtually identical. The spreads on these accounts start from as low as 1.0 pips with no commissions paid. However, some features on the MetaTrader account are only accessible to MT5 users. For example, only MT5 users can trade Stock CFDs on the MetaTrader account. The raw pricing account features lower spreads starting from 0.0 pips with a small commission. The commission on this account sits at $7 commission per $100k traded.
77.1% of retail investor accounts lose money when trading CFDs with this provider.
Interactive Brokers also has a long history in the market having launched in 1977. In Canada, this broker operates under the watchful regulation of the CIRO and is a member of the Canadian Investor Protection Fund. That’s not all. The broker is also under the regulation of the FCA in the UK, the ASIC in Australia, the SEC and CFTC in the US, and the Monetary Authority of Singapore. With such regulations, it is easy to see why traders consider Interactive Brokers with such high regard.
Furthermore, this broker features a diverse collection of market instruments. On this broker site, traders have access to over 150 different assets from seven main global markets. The markets that traders can invest in include CFDs on forex, stocks, futures, options, cryptocurrencies, US Spot Gold, bonds, and ETFs. These instruments are available to trade on market standard platforms which include Trader Work Station and TradingView.
Finally, let’s look at the trading fees charged by this broker. Interestingly, Interactive Brokers primarily charges a commission when trading. This allows the broker to keep the spreads as low as possible. The spreads can be as low as 0.1 pips for major currencies. On the other hand, the commission depends on the monthly trading volume of a trader. As an example, a trader with a monthly trading volume of less than $1 billion pays a commission of $0.0001*the monthly trading volume.
FXCM operates in Canada under the name Friedberg Direct. This is made possible after a partnership with the Friedberg Mercantile Group Ltd. This relationship allows Canadian residents to access FXCM’s suite of market products under a Canadian-regulated entity. The activities of Friedberg Direct are under the supervision and regulation of the CIRO. On top of that, Friedberg Direct is a member of the Canadian Investor Protection Fund.
There are various markets that are accessible to traders on the FXCM platform. These include forex, indices, commodities, shares, energies, and treasuries. This allows traders to invest in multiple markets without necessarily leaving the trading site. The platforms available to trade these markets include MetaTrader 4 and Trading Station.
Friedberg Direct strives to offer transparent pricing to its clients. Notably, the charges include a combination of tight spreads and competitively low commissions. Investors trade on the direct spreads the company receives from its liquidity providers with no hidden markups. On top of that, the broker charges a commission that starts from as low as $0.07 per 1,000 lot.
Oanda offers Canadian traders forex currency pairs and shares plus CFDs on shares, indices, commodities, ETF Funds, and cryptocurrencies. Such a diverse collection of market instruments is always an attractive feature to many traders. Better yet, the spreads for trading instruments on this broker site are fairly low starting from 1.0 pips for major currencies with no commissions paid.
Moreover, Canadian traders will be pleased to know that this is a broker under the regulation of the CIRO. The company is also a member of the Canadian Investor Protection Fund. Note that regulations alone are never enough. But you are much safer trading with a broker with proper regulations than with one with lacklustre regulations or no regulations at all. Moreover, this broker is also under the regulation of other top-tier organizations like the NFA and the CFTC in the USA.
For trading platforms, traders have access to TradingView and MetaTrader 4. The broker also offers its in-house-built platform, OANDA. Notably, the Oanda platform is one of the best DOM trading platforms in existence.
CMC Markets is regulated by the CIRO and is a member of the Canadian Investor Protection Fund. This plays a great role in winning the trust of investors from Canada. Further, the broker is under the regulation of other organizations including the FCA in the UK and the BaFin in Germany. Brokers with such regulations are less likely to defraud investors.
The trading platform available on this broker site is robust but simple to use. The platform available to use is MetaTrader 4 which is available on a range of devices including MacOS, Windows, and Android devices. This platform gives traders access to CFDs on forex, cryptocurrencies, shares, indices, commodities, treasuries, and share baskets.
What’s more, this broker offers competitively low spreads to traders. The spreads start from as low as 0.5 pips for major currencies without a commission. However, traders can access even lower spreads on the FX Active account. This account gives traders spreads that start from 0.0 pips on six major forex pairs plus a 25% discount on spreads on all other currency pairs. The account charges a commission of $2.50 per $100,000 traded.
Questrade is a prominent player in the Canadian forex trading landscape, operating under the oversight of the CIRO. The broker's commitment to investor protection is further reinforced by its membership in the Canadian Investor Protection Fund (CIPF).
The broker has earned a solid reputation for providing a user-friendly platform and transparent trading conditions. The broker offers its own platform Questrade Trading. The broker's trading platform is powered by QuestradeFX, providing a seamless and intuitive experience for both novice and experienced traders. With robust charting tools and real-time market data, QuestradeFX ensures traders have the necessary resources for informed decision-making.
Further, traders on Questrade can benefit from competitive spreads, starting as low as 0.8 pips for major currency pairs. In addition to forex trading, Questrade offers a diverse range of market instruments. This includes CFDs on stocks, commodities, and indices. Questrade distinguishes itself by offering commission-free ETF purchases. This makes it an attractive choice for investors looking to build diversified portfolios.
AvaTrade is another reputable broker that has partnered with Friedberg Direct to deliver its services to Canadian traders. Like FXCM, this partnership ensures that the broker operates in the jurisdiction under the regulation of the CIRO. This regulatory license is an addition to the others that AvaTrade holds. The broker also has regulations by the CySEC, the ASIC, the Central Bank of Ireland, and the KNF in Poland.
Traders on AvaTrade have access to an extensive selection of trading instruments. These include forex, cryptocurrencies, commodities, indices, ETFs, bonds, and stocks. The broker provides multiple trading platforms, including the popular MetaTrader 4, MetaTrader 5, and its proprietary platform, AvaTradeGO. On top of that, brokers have access to advanced risk management tools such as AvaProtect. These tools plus educational resources make AvaTrade suitable for traders of varying experience levels.
AvaTrade's competitive pricing structure includes tight spreads, starting from 0.9 pips for major currency pairs. This is one of the lowest spread pricing traders can find on any broker site.
Choosing a reliable and regulated forex broker is a crucial step for any trader before investing. Regulators play a crucial role in investor protection, ensuring market integrity, encouraging transparency, and offering dispute resolution. The regulatory framework established by CIRO ensures that brokers adhere to high standards of conduct, fostering a fair and transparent trading environment. In this article, we featured brokers with CIRO regulations plus quality services. Nonetheless, this list may not be exhaustive and new developments may occur in the course of time. As such, we encourage traders to thoroughly research and consider their individual needs before selecting a broker.