It seems that especially Australian-regulated brokers (like Pepperstone, and now XM) are releasing their Canadian clients, just as UK-regulated brokers did a while ago. What is the reasoning/regulatory decision that is causing this?
Canada is about to ban binary options trading altogether. Those brokers donít offer binary options, as far as I know, but itís possible the Canadian Securities Administration (i.e. the regulatory body unifying all regional financial markets and services regulators within the country) is mulling further regulation, if we take as an example established pattern from other regulators like the FCA and CySEC. Also, itís possible brokers would be more privy to information about such possible regulations than traders are, who knows. I canít think of any other reason why this is happening.
Reason being which I found out as my Aussie broker just stopped also; is that ASIC had changed regulations that Aussie brokers can NOT get foreign clients any longer thus what some or most brokers are doing is to set-up an office and get regulation under the Cayman Islands - So here, for those that are able to do this they would still allow you to be with them BUT you will under the Cayman Islands Monetary Authority or CIMA, hence you will no longer be protected under ASIC. For some they have the CYSEC-In Cypress or whatever other islands on the other side of the Globe
The Problem I have with this is that your cash is on the other side of the globe even though brokers display that "hey traders" we are regulated here and there etc. NOT all regulators are the same or are created equal - Your funds are at a higher risk of vanishing - The strick-tiest regulations are under ASIC- Aussie, the FCA-In the Uk, CFTC/NFA - In the States, and IIROC/ CIPF - In Canada
With these 4 major regulators stated here you have greater degree of assurances to a greater extent that your funds, you could still get back, whatever non-sense the brokers may decide to do in the future. Majority do not pass or dont qualify the IIROC lol Or they dont fancy it; but for Canadians having IIROC regulated brokers and CIPF membership, you can sleep soundly at night lol
The Problem however with US and Canadian regulations are that the Max. leverage generally available is only 50:1 which is ridiculous lol for the experienced trader