A Detailed Look North Of The Border: Canada's FX Industry Explained

The world’s second largest country by area is home to just 33.4 million people. Despite its significant under-population and often extreme weather conditions, Canada ranks as one of the best countries in which to live in terms of quality of life, earnings potential and business opportunities.

Canadians often take a long term approach to their investments and trading, with retirement as a significant focus of retail investors.

According to a survey conducted by The Gandalf Group,those with more to invest are more likely to be of retirement age but even those who are of working age consider saving for retirement to be a top goal and many have reshaped their investments in recent times to focus more on retirement.

When it comes to what they consider most when they trade, most retail investors often overlook governance, ethical, corporate citizenship issues, and foreign ownership concerns if the earnings are there. Possible gain over five years is the most important consideration for retail investors.

Financial Infrastructure

Toronto is just 550 kilometers from New York City, and has a developed financial markets infrastructure. As a result, the vast majority of Canadians who trade the markets live and operate in this city.

Toronto Stock Exchange (TSX) was established on October 25, 1861 at the Masonic Hall. Subsequently, due to Canada’s conservative approach to trading throughout its history, Canadian traders are very much focused on traditional stock trading.

Regulatory Structure

Around 2011, Canada’s regulators began to assess methods of regulating the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term industry on a domestic basis. This is administered on a provincial level, and currently there are two regulators in Canada: The OSC and the Financial Institutions Commission (FICOM) of British Columbia.

At present, Ontario, Alberta and British Columbia are the only provinces which regulate Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, all three of which have slightly different criteria. In British Columbia it is illegal to operate unless regulated by FICOM. Any forex company or representative of a forex company soliciting for business in British Columbia without FICOM regulations risks prosecution.

In British Columbia it is entirely possible to be arrested by police officers for simply holding a forex training event hosted by an independent trainer, if not licensed by FICOM.

The OSC is a little less draconian in its approach, allowing companies regulated by other jurisdictions to solicit for clients in Ontario, but insisting that forex companies located in Ontario are regulated by the Ontario Securities Commission.

This is an excerpt from full and detailed research made by Forex Magnates on the FX industry in Canada which is published in the recently released Forex Magnates Quarterly Report for Q2 , and includes full data on brokerages, technology providers, and a concise overview relating to factors to bear in mind when doing business in Canada.