The aggregation of seemingly brute force regulatory strokes in North America has prompted the cessation of many brokers in the continent, following the necessitation of registered broker-dealers and other legal obligations.
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The FX market is a dynamic entity with many brokers opting for lesser regulatory hurdles – this has resulted in a push and pulling of broker behaviors away from locales such as the United States and New Zealand. Unfortunately for Canadian clients, this list now extends to Canada, following the termination of new client accounts from Alpari.
According to information learned by Forex Magnates, Canadian investors are now barred from creating accounts with the company. This is hardly the first time Alpari has faced such headwinds internationally, with their exodus from New Zealand being one notable example.
Canadian law now stipulates that companies must be registered broker-dealers in Canada to procure new clients. Given the lack of a Canadian office, the schism between Alpari and Canada has now manifested into an outright departure from the country.