Hello Canadians,
In the beginning of November 2019, when I was just about to open a Pro Account with no commission and virtually no spread (try to beat that!!) FXTM closed my account and told me that they can no longer accept Canadian traders. Last year Blueberry Markets also stopped accepting Canadians - another excellent broker. And the line goes on...
My one year experience with FXTM ECN brokers was solid. It has a stable platform, great connection, fast execution and account types - no slippage or S/L hunt. The spreads could have been better though. When IIROC - a bunch of clueless administrators - banned FXTM from accepting Canadians, FXTM covered my withdrawal wire transfer fees. They were more than fair.
The FOREX brokers IIROC allows to be in Canada - six that I know of - are mostly Market Makers except one, who is an ECN broker with great spread and commission. But, its lousy platform is unusable for Price Action traders. Others offer unstable platforms or have unrealistically wide spreads or disallow pending orders close to market price, which act like a wider spread and also widens your S/L. Or, if you enter with Market Execution Order, then your S/L cannot be closer to your entry than 3 pips. On a lower timeframe this could become a problem. Moreover, some have bad currency conversion spreads or high bank exchange rates instead of realistic spot rates or offer lousy leverage and high commission etc. Choose your favorite... In Forex Peace Academy you'll see that the brokers Canada's IIROC approves of, in its own passive aggressive way, are in the 1-3 star category, not the 4-5 star one.
Although Market Makers don't share their interest with traders that's not the real problem in Canada. The real problem is that we don't have choices of ECN brokers and FOREX brokers in general. If the National Regulatory Body does not only regulate trading activities, but also over-regulates them, then they'll drive away foreign business. Also, when Regulations become Restrictions competition seeps into monopoly. As a result the few FOREX trading platforms we have in Canada will not feel the need to challenge each other, but rather agree on keeping offers and deals mediocre. Mediocre regulation equals mediocre trading environment.
Regulations become mediocre when you cater mediocre traders. The more mediocre traders are the more you have to restrict their activities in order to protect them. As a result, regulations become restrictions. In a restrictive environment a skillful trader won't be able to profit as much as s/he would want to. Thus, s/he is hurt by such environment. Regulations become effective only when they protect All legitimate Traders and Trading Activities. Also, restrictions may protect mediocre traders in the beginning, but in the long run it will hurt them as well. Solutions do not lie in delaying doom, but in preventing it through education- not restrictions.
My problem with IIROC is that they not only regulate FOREX brokers in Canada, but also prohibit foreign brokers to accept Canadians. Such control is a threat to the freedom of choice and trade. IIROC isn't aware of its boundaries. I see them as Metastasized Western Colonialism. However, ethics would demand of them to place traders' interests at the forefront instead of their own. Instead of banning good foreign brokers to accept Canadians, IIROC should establish good global relationships with them. Instead of exporting non-sense we should export democratic and profitable trading values. The more good relationships are formed the more bad brokers will be forced to change.
If IIROC keeps banning foreign FOREX brokers from accepting Canadians, then Canadians will systematically lose money to frivolous and forced Bank Wire Transfers, broker's wire transfer fees, and unfavorable Bank Exchange Rates. Also, many of them will be stuck in trades for reasons due to errors in the system. When Account Termination emails get lost traders will not become aware of account closures; their trades will be automatically closed that can incur a loss. It happened to me, but I was lucky... Not to speak of the time it takes to find a new broker that can satisfy our needs and demands - and this is the greatest blow in the process. It's for a month now that I am out of work - and that's a great financial drawback. Yes, some of us are serious/cautious about finding a good broker. Acquainting ourselves with their staff, customer care, Strategy Account Manager, Terms and Conditions, platforms and conversion spreads etc. takes time. And, if IIROC were genuinely concerned and empathetic at all, it would help Canadian traders with their endeavors rather than hinder them.
IIROC, deploys Gestapo tactics to hunt down the brokers who employ Canadian FOREX Traders. IIROC ruthlessly eliminates foreign systems that dare to challenge Canadian ideas of fair trade. I feel like I am being kicked from broker to broker, while my status as a trader is ever insecure - just because I chose to trade elsewhere. IIROC preys upon Canadian FOREX traders who dare to trade with foreign brokers who aren't approved by them - THIS MUST CHANGE.
Moreover, IIROC administrators do not understand that leverage isn't your enemy - you are your own greatest enemy. Leverage allows us to have more open positions in a favorable market. If our entries are rock solid and have good risk/money management, then the risks we take are mindful versus mindless. The less leverage you have the longer you are forced to stay in the market, bordering irrationality. Or the smaller your position is the more you will have to enter/exit the market in order to make some profits. And, there is a risk associated with this. The less knowledgeable you are the less you should do it. But, with less leverage this is exactly what you will do. The only difference between losing your money with applying leverage mindlessly and entering/exiting the market more frequently is that with the mindless application of leverage you will lose your money faster. Restrictions and Control only delay the depletion of the capital of the beginner trader. The only real protection the beginners is education and patience.
Leverage is a mediator between greed, instinct and rationality. If it is wisely utilized it can cater to greed and instincts. It allows you to profit within reason and exit the market with satisfaction before it turns against you. However without leverage, greed often persuades traders to make illogical commitments to profit even in an unfavorable market. But, before they pull it off, the market turns against them. When knowledge and logic controls your choice of leverage instead of greed, the result becomes quite pleasant.
IIROC's leverage regulations obstruct traders from optimizing their trades. It obstructs traders from becoming the most effective they can be in trading the market! It obstructs us from thinking, progress and change. By giving up on our sense of responsibility we are also giving up on our freedom. No government would ever feel as responsible for you as you would for your self. Thus, traders should fight for their freedom and push back on government.
IIROC should respect our choices and stay out of the business of the Canadian FOREX Retail Trader. The leverages we choose should be up to us, not the Government! If you aren't in charge of your choices, if you give up this power, then you might as well hand over your life.
Those who want to trade with IIROC regulated brokers should be able to do so. Likewise, those who want to trade with offshore brokers should be able to do so. Most of traders lose their money due to their lousy risk and money management and not because of fraudulent offshore brokers. Thus, it's education that we should press, not control. Instead of prohibiting foreign brokerages to accept Canadians they should educate Canadian traders about their choices and trades.
Unskillful traders who are blindly driven by greed will find their doom, one way or another - their rapacious self is their own worst enemy. IIROC is wrong to think that they can counteract ignorance with restrictions and control. Restriction and Control without freedom is despotism . If they were interested in ethics at all they would be pushing education and self knowledge for the sake of traders' protection. It all comes down to one thing: The government's interference with decent personal choices is nothing less but tyranny. The more control IIROC wants to impose the more will these traders look for offshore accounts. Simple psychology.
An IIROC official told me "if I want to trade with brokers of my choice, I should move from Canada." Instead of driving profitable FOREX traders out of the country they should keep them, because it's good for economy. And this is not a solution at all for those who don't enjoy the privileges of dual citizenship. Those who stay will perhaps find a way to cheat the system - or leave FOREX all together. Instead of imposing senseless regulations and control and needlessly forcing traders into impossible situations, they should work at providing a better FOREX trading environment. IIROC should rather encourage foreign brokerages to settle in Canada by removing some of the senseless restrictions to make FOREX a friendlier and more competitive field that offers better deals. IIROC should also encourage Canadians to work with foreign brokers by harmonizing their regulations with Foreign Regulatory Bodies.
FOREX is a livelihood of those who cannot afford stocks trading momentarily. FOREX is the friend of the diligent, the poor and the lower middle class, because they can trade with money they can afford. It would be empathetic from the government to support the cause of FOREX for the sake of those who want to excel in this field. It seems right now, that the government rejects the idea of the poor and the lower middle class making money.
It all comes down to one thing: Who I trade with is MY BUSINESS as long as it is legit, fair and taxable. The government should keep out of it.
AttiM
In the beginning of November 2019, when I was just about to open a Pro Account with no commission and virtually no spread (try to beat that!!) FXTM closed my account and told me that they can no longer accept Canadian traders. Last year Blueberry Markets also stopped accepting Canadians - another excellent broker. And the line goes on...
My one year experience with FXTM ECN brokers was solid. It has a stable platform, great connection, fast execution and account types - no slippage or S/L hunt. The spreads could have been better though. When IIROC - a bunch of clueless administrators - banned FXTM from accepting Canadians, FXTM covered my withdrawal wire transfer fees. They were more than fair.
The FOREX brokers IIROC allows to be in Canada - six that I know of - are mostly Market Makers except one, who is an ECN broker with great spread and commission. But, its lousy platform is unusable for Price Action traders. Others offer unstable platforms or have unrealistically wide spreads or disallow pending orders close to market price, which act like a wider spread and also widens your S/L. Or, if you enter with Market Execution Order, then your S/L cannot be closer to your entry than 3 pips. On a lower timeframe this could become a problem. Moreover, some have bad currency conversion spreads or high bank exchange rates instead of realistic spot rates or offer lousy leverage and high commission etc. Choose your favorite... In Forex Peace Academy you'll see that the brokers Canada's IIROC approves of, in its own passive aggressive way, are in the 1-3 star category, not the 4-5 star one.
Although Market Makers don't share their interest with traders that's not the real problem in Canada. The real problem is that we don't have choices of ECN brokers and FOREX brokers in general. If the National Regulatory Body does not only regulate trading activities, but also over-regulates them, then they'll drive away foreign business. Also, when Regulations become Restrictions competition seeps into monopoly. As a result the few FOREX trading platforms we have in Canada will not feel the need to challenge each other, but rather agree on keeping offers and deals mediocre. Mediocre regulation equals mediocre trading environment.
Regulations become mediocre when you cater mediocre traders. The more mediocre traders are the more you have to restrict their activities in order to protect them. As a result, regulations become restrictions. In a restrictive environment a skillful trader won't be able to profit as much as s/he would want to. Thus, s/he is hurt by such environment. Regulations become effective only when they protect All legitimate Traders and Trading Activities. Also, restrictions may protect mediocre traders in the beginning, but in the long run it will hurt them as well. Solutions do not lie in delaying doom, but in preventing it through education- not restrictions.
My problem with IIROC is that they not only regulate FOREX brokers in Canada, but also prohibit foreign brokers to accept Canadians. Such control is a threat to the freedom of choice and trade. IIROC isn't aware of its boundaries. I see them as Metastasized Western Colonialism. However, ethics would demand of them to place traders' interests at the forefront instead of their own. Instead of banning good foreign brokers to accept Canadians, IIROC should establish good global relationships with them. Instead of exporting non-sense we should export democratic and profitable trading values. The more good relationships are formed the more bad brokers will be forced to change.
If IIROC keeps banning foreign FOREX brokers from accepting Canadians, then Canadians will systematically lose money to frivolous and forced Bank Wire Transfers, broker's wire transfer fees, and unfavorable Bank Exchange Rates. Also, many of them will be stuck in trades for reasons due to errors in the system. When Account Termination emails get lost traders will not become aware of account closures; their trades will be automatically closed that can incur a loss. It happened to me, but I was lucky... Not to speak of the time it takes to find a new broker that can satisfy our needs and demands - and this is the greatest blow in the process. It's for a month now that I am out of work - and that's a great financial drawback. Yes, some of us are serious/cautious about finding a good broker. Acquainting ourselves with their staff, customer care, Strategy Account Manager, Terms and Conditions, platforms and conversion spreads etc. takes time. And, if IIROC were genuinely concerned and empathetic at all, it would help Canadian traders with their endeavors rather than hinder them.
IIROC, deploys Gestapo tactics to hunt down the brokers who employ Canadian FOREX Traders. IIROC ruthlessly eliminates foreign systems that dare to challenge Canadian ideas of fair trade. I feel like I am being kicked from broker to broker, while my status as a trader is ever insecure - just because I chose to trade elsewhere. IIROC preys upon Canadian FOREX traders who dare to trade with foreign brokers who aren't approved by them - THIS MUST CHANGE.
Moreover, IIROC administrators do not understand that leverage isn't your enemy - you are your own greatest enemy. Leverage allows us to have more open positions in a favorable market. If our entries are rock solid and have good risk/money management, then the risks we take are mindful versus mindless. The less leverage you have the longer you are forced to stay in the market, bordering irrationality. Or the smaller your position is the more you will have to enter/exit the market in order to make some profits. And, there is a risk associated with this. The less knowledgeable you are the less you should do it. But, with less leverage this is exactly what you will do. The only difference between losing your money with applying leverage mindlessly and entering/exiting the market more frequently is that with the mindless application of leverage you will lose your money faster. Restrictions and Control only delay the depletion of the capital of the beginner trader. The only real protection the beginners is education and patience.
Leverage is a mediator between greed, instinct and rationality. If it is wisely utilized it can cater to greed and instincts. It allows you to profit within reason and exit the market with satisfaction before it turns against you. However without leverage, greed often persuades traders to make illogical commitments to profit even in an unfavorable market. But, before they pull it off, the market turns against them. When knowledge and logic controls your choice of leverage instead of greed, the result becomes quite pleasant.
IIROC's leverage regulations obstruct traders from optimizing their trades. It obstructs traders from becoming the most effective they can be in trading the market! It obstructs us from thinking, progress and change. By giving up on our sense of responsibility we are also giving up on our freedom. No government would ever feel as responsible for you as you would for your self. Thus, traders should fight for their freedom and push back on government.
IIROC should respect our choices and stay out of the business of the Canadian FOREX Retail Trader. The leverages we choose should be up to us, not the Government! If you aren't in charge of your choices, if you give up this power, then you might as well hand over your life.
Those who want to trade with IIROC regulated brokers should be able to do so. Likewise, those who want to trade with offshore brokers should be able to do so. Most of traders lose their money due to their lousy risk and money management and not because of fraudulent offshore brokers. Thus, it's education that we should press, not control. Instead of prohibiting foreign brokerages to accept Canadians they should educate Canadian traders about their choices and trades.
Unskillful traders who are blindly driven by greed will find their doom, one way or another - their rapacious self is their own worst enemy. IIROC is wrong to think that they can counteract ignorance with restrictions and control. Restriction and Control without freedom is despotism . If they were interested in ethics at all they would be pushing education and self knowledge for the sake of traders' protection. It all comes down to one thing: The government's interference with decent personal choices is nothing less but tyranny. The more control IIROC wants to impose the more will these traders look for offshore accounts. Simple psychology.
An IIROC official told me "if I want to trade with brokers of my choice, I should move from Canada." Instead of driving profitable FOREX traders out of the country they should keep them, because it's good for economy. And this is not a solution at all for those who don't enjoy the privileges of dual citizenship. Those who stay will perhaps find a way to cheat the system - or leave FOREX all together. Instead of imposing senseless regulations and control and needlessly forcing traders into impossible situations, they should work at providing a better FOREX trading environment. IIROC should rather encourage foreign brokerages to settle in Canada by removing some of the senseless restrictions to make FOREX a friendlier and more competitive field that offers better deals. IIROC should also encourage Canadians to work with foreign brokers by harmonizing their regulations with Foreign Regulatory Bodies.
FOREX is a livelihood of those who cannot afford stocks trading momentarily. FOREX is the friend of the diligent, the poor and the lower middle class, because they can trade with money they can afford. It would be empathetic from the government to support the cause of FOREX for the sake of those who want to excel in this field. It seems right now, that the government rejects the idea of the poor and the lower middle class making money.
It all comes down to one thing: Who I trade with is MY BUSINESS as long as it is legit, fair and taxable. The government should keep out of it.
AttiM