OANDA recently let its Canadian clients know that they will need to migrate their accounts to OANDA Canada in order for it to comply with IIROC regulations (thanks to Yohay from forexcrunch.com for the tip). Canadian regulations are as numerous and conflicting as the US ones with various local and provincial regulatory agencies setting finance related rules. IIROC (Investment Industry Regulatory Organization of Canada) is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
This is what OANDA had to say when I contacted them, I hope this helps OANDA’s Canadian traders looking for more information about this:
“OANDA Canada was registered with IIROC on September 2009. New Canadian users registered directly OANDA Canada soon after. In November 2010 the first migration email was circulated for existing Canadian clients of OANDA Corporation into OANDA Canada. Migration is needed for clients as well as OANDA Canada to comply with Canadian regulations.
OANDA Corporation is registered with the NFA and CFTC in the United States and cannot, under current Canadian law, offer retail forex trading on margin to Canadian clients.
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OANDA registered its Canadian subsidiary with IIROC in Canada to allow its Canadian clients to continue to trade retail forex with us. This means that Canadian clients will have to migrate their account(s) from OANDA Corporation to OANDA Canada in order to continue to trade.
The main difference between the regulatory regimes in the U.S. and Canada is the leverage available to clients. The margin requirements are higher in Canada and subject to change based on the underlying volatility of the currency pairs. A benefit of trading with OANDA Canada is that clients funds are insured of up to $1,000,000.00 CAD with the Canadian Investor Protection Fund (CIPF) providing a higher level of security of funds.
We are aware that there are a number of clients that have concerns about the account migration. If clients have questions or concerns, we’d kindly request they email us at firstname.lastname@example.org”