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Trustworthy DMA Broker w/ low spreads, CFD's, accepting Canadian clients

  • Post #1
  • Quote
  • First Post: Edited Apr 2, 2012 2:03pm Apr 1, 2012 2:04pm | Edited Apr 2, 2012 2:03pm
Hello all. Went through many many threads here, FPA, Babypips, etc been on this project way too long and look to finally wrap it up this week. It's a shame that this had to be such a big project, but in today's society I guess not surprising.

Just a couple details, I am in Canada, looking to start with 10-20K, have an address in South America if I really need to use it.

Canadian Forex rules make the USA ones look loose. I had the following convo with a FXCM employee and then confirmed on IIROC website (make Can Forex rules):

FXCM: Because your account is CAD denominated, IIROC considers you entering a EUR/USD position as follows: Going long USD/CAD in order get out of your CAD position and get into USD
FXCM: that has a margin requirement of 3.3%
FXCM: then they are considering you going Short EUR/CAD
Jason: that is messed up and convoluted
FXCM: therefore that is another margin requirement of 3%
Me: and you end up with 10:1 leverage

You get the idea here, that is just the tip of the iceberg. I am seriously considering IB as a Broker, but if they are going to follow Canadian rules for me that might be the end of that consideration.

--------

So with that backdrop, here are the things that are important to me, in order or priority:

- Trustworthy in ALL aspects, and NOT taking other side of my trade
- Prefer DMA w/ STP, ECN w/ true DMA okay
- Has Forex, CFD's, Indices, Futures/eminis, Metals and Energy (Stocks/ETF's a bonus)
- Accepts Canadian clients (I do have the SA address if needed)
- Access to deep liquidity giving fast fills, NO requotes and min/no slippage
- Regulated by a trusted entity, preferably funds are insured
- Low Spreads and low or no commissions if applicable
- Has 40:1 minimum leverage, more is better
- Micro or Mini lots
- Allows EA's, preferably has not adopted NFA or FIFO rules
- Allows scalping (for possible EA later on)
- Allows hedging, preferably has not adopted NFA or FIFO rules
- No ridiculous rollovers, swaps or commissions
- Can be funded with EUR, USD or GBP
- MT4 a bonus (although after reading this thread: http://www.forexfactory.com/showthread.php?t=70582 I'm really leary about MT4 now )



Remember the list was in priority, maybe I have to do without things closer to the bottom.

Please let me know who you think would be best suited for my specific needs and if you have any experiences with them and help me finalize a decision.

TIA all and happy trading
  • Post #2
  • Quote
  • Edited 2:31pm Apr 1, 2012 2:13pm | Edited 2:31pm
Note that "Marv" has given me a very helpful answer in another thread (was about IC Markets which is why I started this one) that I am pasting here for others who might be in my boat and for anyone to comment on if they wish.

Thanks again Marv for this great info.

Quoting Marv
Having said that about liquidity here are some suggestions:
InteractiveBrokers:

- $10k min deposit
- True ECN
- Very good liquidity
- Accepts USA/Canadian clients
- American regulation, fund segregation
- FX, Futures, Stocks, etc. (pretty much everything)
- Supports many charting packages (other than its proprietary platform)
- Free API

London Capital Group (the currenex account):

- $50k min deposit (can be negotiable down to $20k last time I checked)
- True ECN
- Very good liquidity
- NFA regulation, fund segregation
- Tier 2 institutional brokerage. I've known someone who had a million deposited with them (no issues whatsoever).
- Only spot FX (obviously, since the Currenex technology/network only specializes in FX)

FastBrokers:

- $2500 min deposit
- True ECN
- Very good liquidity
- NFA regulation, fund segregation
- Not just a bröker but more like an introducing agent that routes your orders to the price/liquidity network/feed that you choose (some pretty nice choices with Currenex, LMAX, etc).
- FX, Futures, CFDs
- Free API

MB Trading:

- $400 min deposit
- ECN
- Good liquidity (not as good as the above 3, spreads are not as good)
- American regulation (don't know if they have fund segregation or not)
- Supports some charting packages (other than its proprietary platform)
- Supports MT4
- FX, Futures, Stocks, Options
- Free API
Note: there's also the UK branch (MB Trading UK) with NFA regulation and higher leverage.

PFGBest:

- $1000 min deposit
- ECN
- Good liquidity
- American regulation, fund segregation, nice serious company
- Supports some charting packages (other than its proprietary platform)
- Supports MT4
- FX, Futures, Options

Dukascopy: (I'm currently testing it)

Note: No US clients but they do take Canadian clients I think
- $5000 min deposit ($100 with Dukascopy EU)
- Swiss regulation (the bröker has a bank status), fund segregation
- Good liquidity, but some slippage issues (their slippage, although not major, never goes in your favor, which raises some questions...)
- Only a proprietary java platform, but it's pretty good. (charting and EA's)
- A free java API
- Only spot FX (that includes spot metals)

Some other brökers that look interesting but I don't know if they take Canadian clients:

- LMAX: UK ECN bröker, FSA regulated, good liquidity, the first centralized spot forex exchange, proprietary platform and supports MultiCharts
- FinFX: Finnish ECN bröker, good liquidity (from Integral), MT4 and PowerTrader support, 100:1 leverage.

Just avoid bucketshops and stick with the reputable and regulated ECN's with the best liquidity you can afford.
Quoting jayjonbeach

- LMAX: UK ECN bröker, FSA regulated, good liquidity, the first centralized spot forex exchange, proprietary platform and supports MultiCharts
LMAX is not an ECN broker. It is an MTF. They use their client base to match buyers with sellers and subsequently match trades off.
Just a fast note here. I have contacted a few Brokers that do not accept USA clients, and it appears most of them are not worried about Canadian law suits, for now, and will accept Canadian clients.

I do wonder how long this will last but for now, this might make things much easier for me. (Canada does follow the USA for many things)
Quoting jayjonbeach
Just a fast note here. I have contacted a few Brokers that do not accept USA clients, and it appears most of them are not worried about Canadian law suits, for now, and they will accept Canadian clients.

I do wonder how long this will last but for now, this might make things much easier for me. (Canada follows the USA for many things)
err... Canadian law suits?

Most provinces have regulations that openly allow residents to trade FX offshore. I've yet to hear of this changing or becoming more restrictive.

Where did you hear we can't?

The only exception I know of is for residents of B.C.. where their local regulator puts some additional restrictions that make most brokers not want to do business with clients there.

There are restrictions on US based firms dealing to Canadians as well (they need a locally registered office,) but it's an agreement only affecting US/Canadian business.
FXGears.com
Quoting Jack_Larkin
err... Canadian law suits?

Most provinces have regulations that openly allow residents to trade FX offshore. I've yet to hear of this changing or becoming more restrictive.

Where did you hear we can't?

The only exception I know of is for residents of B.C.. where their local regulator puts some additional restrictions that make most brokers not want to do business with clients there.
Well as I said above, I almost expected to run in to the same troubles the poor folks in the USA were as Canada often follows suit with the USA on many things. I don't want to derail the thread here, but the whole thing the USA is doing just seems like another form of "protectionism", which I could see Canada doing to.

At any rate, I'm happy that for now I have many more options available. Too bad for the B.C folk, that isn't right for sure.

Quoting Jack_Larkin
There are restrictions on US based firms dealing to Canadians as well (they need a locally registered office,) but it's an agreement only affecting US/Canadian business.
This is what worries me about going to IB, see my OP above. I wonder if I am Canadian they will apply the silly IIROC Canadian rules. I hear IB's Customer Service is not so great and wonder how long it would take me to figure out the answer.
Another fast note here. I took a hard look at IG Markets yesterday, and liked what I saw. Here is a quick run down:

IG Markets

- Segregated funds across a range of major banks.
- DMA with Level 2
- CFD’s for just about everything, 7000 and 60 forex pairs
- 99.5% of trades executed in 0.1 second
- Spreads from about 0.8 pips on forex and 1 point on Indices. (typical Eur around 1 pip).
- Allows hedging BUT NO EA’s (this is secondary for me for now)
- will give you better price if market moves in you favour (+ slippage)
- Leverage 20:1 on CFD's?? and 200:1 Forex?? (not sure on these)
- guaranteed stops but they charge 0.3% of position for this and they have to be a min distance of 5% away. Regular stops should be good most of time
- trailing stops

So it was looking good, then the killer. For some reason they are hosing Canadians on Commission for CFD's. For Europe it was minimum 10EU, and for many other countries it was comparable, but for Canada it is:

- commission for CFD 3cents/share min Cnd 25

Ouch
Quoting jayjonbeach
Another fast note here. I took a hard look at IG Markets yesterday, and liked what I saw. Here is a quick run down:

IG Markets

- Segregated funds across a range of major banks.
- DMA with Level 2
- CFD’s for just about everything, 7000 and 60 forex pairs
- 99.5% of trades executed in 0.1 second
- Spreads from about 0.8 pips on forex and 1 point on Indices. (typical Eur around 1 pip).
- Allows hedging BUT NO EA’s (this is secondary for me for now)
- will give you better price if market moves in you favour (+ slippage)
-...
Yeah, Pepperstone and armada don't do CFD's, their instrument's list is actually pretty short, but i guess they will both add new instruments with time
I know Marv gave some excellent information here in the thread and I am looking closely at each but I would be grateful if others would chime in with any experiences they had with these Brokers and any opinions on who is the most suitable for me or if they have another to recommend.

In Summary, Trust-able in ALL aspects, DMA, Futures or CFD's (both better), deep liquidity giving fast fills and good spreads. See list in OP for more.

I should probably add that on average I might hold a currency trade for 1-2 days, but some trades could be held for a week or more so low swaps is desirable as well. Futures trades similar, 2 days often but when hopping on a good trend I might hold 2 months.
Quoting jayjonbeach
Dukascopy: (I'm currently testing it)
- Good liquidity, but some slippage issues (their slippage, although not major, never goes in your favor, which raises some questions...)
That isn't true, with Dukascopy swissfx platform you will get both positive and negative slippage. Positive on limit orders, negative on stop orders, random positive/negative on market orders and zero (by definition) on Bid's/Offer's.
I live in Alberta, I have accounts open with IBFX, and Oanda Canada.
I tried opening a second account with IBFX this week but was told due to being Canadian we cant help you. Then I received an email from Oanda this morning stating, we see you live in Alberta and the new law is, you must be a Accredited Investor to have a Spot FX account open.

Which means a Canadian Securities license, or $1,000,000 liquid cash, or $5,000,000.00 in assets.

Any how I have been researching brokers all week. Taking a close look at EXNESS, they accept Canadians, good leverage (100-1 only for me) Cfd's I have never heard of. I've been using a demo with them all week, no slips. Live account is pending will see how it goes.
Quoting manalive

Which means a Canadian Securities license, or $1,000,000 liquid cash, or $5,000,000.00 in assets.

Any how I have been researching brokers all week. Taking a close look at EXNESS, they accept Canadians, good leverage (100-1 only for me) Cfd's I have never heard of. I've been using a demo with them all week, no slips. Live account is pending will see how it goes.
I specifically went outside of Canada in the end to avoid all the dumb laws and regs they have, which are worse than the USA laws.

I would be careful with the one you mention. Which Country are they in? Are they a Market Maker? Don't think I have heard of them, could be a bucket shop. Personally, even though there are 1, or maybe two honest MM's (AFAWK) I wouldn't touch a MM with a 10 foot pole. Why, when there are much better and more honest DMA options.

Do your DD, just about any Broker will accept a Canadian, at least they were a month ago, where as our USA counterparts are now screwed.

Do you know anything about this new law? When it was enacted? It doesn't surprise me in the least for sure. I would love to see the body of the email if you wouldn't mind pasting it here. That is an absolutely and an utterly retarded law. I wonder if they are getting it mixed up with the Day Trader rules, or with tax implications or something. See the DT rules here:

http://www.interactivebrokers.ca/en/...A&ib_entity=ca

Most things on their website link to the .com site, but not this link I have to think it applies to us as well.

Here is what I ended up doing here with my current thoughts on it: http://www.forexfactory.com/showthre...89#post5653289

After about 3 months of pulling my hair out. As you can see from my OP, I had many requirements that I wanted met.

Cheers
  • Post #13
  • Quote
  • Edited 8:09pm Jul 10, 2012 7:05pm | Edited 8:09pm
Any how I have been researching brokers all week. Taking a close look at EXNESS, they accept Canadians, good leverage (100-1 only for me) Cfd's I have never heard of. I've been using a demo with them all week, no slips. Live account is pending will see how it goes.

Hi: I am also looking to open a Forex trading account but do not qualify for the accredited investor status. All I want to do is start out with a few grand but hit this wall. Ouch. I am starting my own search for how can a lowly Canadian trade Forex. If you could let me know if you have found a reliable Forex broker that would be great. Hope it has worked out for you and any information around the Accredited Wall would be greatly appreciated. Thanks.

Hi again. Just did some surfing and found a broker that looks good. Pepperstone. Maybe you have already looked at them. I plan to run their demo and see how it goes. So far they look like they will be my pick.
Why Canada has to be so special to have so much stupid regulations? Is the government really trying to protect us investors, c'mon!? I have been scratching my head for the last few weeks. Guys come up with some decent brokers yet just wondering?
Whatever is happening right now has happened before and will happen again.
Yes, Canada has imposed some very dumb rules, especially for people in B.C apparently.

See my 2nd post, those are good Brokers in there from what I know.

I signed up with Fast Brokers to use Lmax and am quite happy.

Pepperstone is good too from what I know.

One thing that we have over US residents, most Brokers, at least for now, will accept us, where as the US strong-armed all the Brokers to NOT accept USA residents restricting their choices which is total B.S

Good luck hunting, and becareful, 95% of Brokers are crooked
Quoting jayjonbeach
Note that "Marv" has given me a very helpful answer in another thread (was about IC Markets which is why I started this one) that I am pasting here for others who might be in my boat and for anyone to comment on if they wish.

Thanks again Marv for this great info.



InteractiveBrokers:

- $10k min deposit
- True ECN
- Very good liquidity
- Accepts USA/Canadian clients
- American regulation, fund segregation
- FX, Futures, Stocks, etc. (pretty much everything)
- Supports many charting packages (other than its proprietary...
PFGBest:

- $1000 min deposit
- ECN
- Good liquidity
- American regulation, fund segregation, nice serious company
- Supports some charting packages (other than its proprietary platform)
- Supports MT4
- FX, Futures, Options

--------------------

VERY NICE AND VERY SERIOUS.......

COZ.........IT IS AMERICAN!
  • Post #17
  • Quote
  • Last Post: Jul 17, 2012 11:28pm Jul 17, 2012 11:28pm
Quoting alstural
PFGBest:

- $1000 min deposit
- ECN
- Good liquidity
- American regulation, fund segregation, nice serious company
- Supports some charting packages (other than its proprietary platform)
- Supports MT4
- FX, Futures, Options

--------------------

VERY NICE AND VERY SERIOUS.......

COZ.........IT IS AMERICAN!
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