you know, i've been thinking about it more.
i'm actually glad there is regulation here. i got a response back from BCSEC. having someone like BCSEC certainly helps in the fight against scam brokers...
Thank you for contacting the British Columbia Securities Commission (BCSC).
Forex trading, whether automated or not, requires registration in British Columbia.
Forex dealers that are registered in jurisdictions outside of Canada are also required to register in British Columbia if they serve British Columbia residents.
British Columbia is the only jurisdition in Canada that currently regards trading in forex contracts as trading in securities under the British Columbia Securities Act.
Prior to January, 2008, we required forex dealers to registered with us as 'exchange contract dealers'.
British Columbia Policy 31-601, Registration Requirements, as amended in January 2008, currently requires forex dealers to register as 'investment dealers' and become members of the Investment Industry Regulatory Organization of Canada ("IIROC", formerly: the Investment Dealers Association of Canada).
Link to 31-601, URL: <http://www.bcsc.bc.ca/policy.aspx?id=6116&cat=3%20-%20Registration%20Requirements%20and%20Related%20Matters>.
Many forex dealers shy away from registering in British Columbia because of IIROC's stringent margin requirements.
You may be interested to read a summary we created on the subject of forex trading for our InvestRight web site, URL: <http://www.investright.org/investprod.aspx?id=175>.
You can also conduct a search on our main web site to locate information on enforcement actions we have pursued that relate to forex trading, simply enter 'forex' in search bar, URL: <http://www.bcsc.bc.ca/>.
The following dealers offer FOREX:
FXCM Canada Ltd.
Interactive Brokers Canada Inc.
MF Global Canada Co.
Best Forex Brokers (Non-US Version)
TradeFreedom Securities Inc.
If you need more help, please contact us again.
British Columbia Securities Commission