6 minute read
Is JustMarkets Legal in Canada? A Comprehensive Review
from JustMarkets
by Exness_India
If you're a Canadian trader or investor researching the online broker JustMarkets, one question likely sits at the top of your mind: Is JustMarkets legal in Canada? The short and clear answer is no, JustMarkets is not legally authorized to operate in Canada. This article will explain why, who regulates forex trading in Canada, the risks involved with using unregulated brokers, and the alternative legal options available to Canadian residents.
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What Is JustMarkets?
JustMarkets is an international online brokerage firm that offers services such as forex trading, CFD trading, and cryptocurrency trading. Known for its low spreads, high leverage, and user-friendly platforms like MetaTrader 4 and MetaTrader 5, it has gained popularity in many countries.
JustMarkets operates under the regulation of Just Global Markets Ltd, a company registered in Seychelles and regulated by the Financial Services Authority (FSA) of Seychelles. It is important to note that this is an offshore jurisdiction and not considered a major financial regulator by Canadian standards.
Is JustMarkets Regulated in Canada?
No, JustMarkets is not regulated in Canada. It does not hold a license with the Investment Industry Regulatory Organization of Canada (IIROC) — the main self-regulatory organization that oversees all investment dealers and trading activity in Canadian capital markets.
Furthermore, no Canadian provincial securities regulators (such as the Ontario Securities Commission or British Columbia Securities Commission) have issued any license or registration to JustMarkets. Without such approval, a company cannot legally solicit or provide trading services to Canadian residents.
Why Regulation Matters in Canada
In Canada, the financial industry is strictly regulated to protect investors and ensure market integrity. Every brokerage firm that wants to offer services to Canadian residents must be registered with provincial regulators and must be a member of IIROC.
This means that:
· All clients' funds must be kept in segregated accounts with Canadian banks.
· Firms are subject to frequent audits, compliance inspections, and capital adequacy requirements.
· Investors are protected by the Canadian Investor Protection Fund (CIPF), which offers limited compensation in case the firm becomes insolvent.
Offshore brokers like JustMarkets do not offer these protections. If the company faces legal issues or bankruptcy, Canadian clients are unlikely to have any legal recourse or access to compensation.
Has JustMarkets Been Blacklisted in Canada?
As of the time of writing, some provincial regulators have issued warnings about dealing with offshore brokers, though not all specifically name JustMarkets. However, it is a general stance among Canadian regulators that offshore firms operating without a license are considered illegal.
For example, the Ontario Securities Commission (OSC) regularly updates its list of unregistered firms that are soliciting Canadian residents unlawfully. If a firm is on that list, it is best to avoid it entirely. Even if JustMarkets is not explicitly listed yet, using their services from Canada is still illegal under Canadian law.
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Can Canadians Legally Trade With JustMarkets?
Technically, no. Canadian residents are not legally permitted to open or use trading accounts with JustMarkets unless the company becomes licensed in Canada. Some users have been able to bypass restrictions using VPNs or false addresses, but this is not only risky—it may also constitute a violation of Canadian financial laws.
If you are a Canadian resident and you open an account with JustMarkets, you are:
· Trading outside the protection of Canadian law.
· Accepting the full risk of loss without access to regulatory dispute resolution.
· Vulnerable to potential scams, data breaches, or fund withdrawal issues.
What Are the Risks of Using an Unregulated Broker in Canada?
Using an unregulated or offshore broker like JustMarkets exposes Canadian traders to several serious risks:
1. No Legal Protection
If something goes wrong — such as the broker refusing withdrawal, changing terms, or disappearing altogether — you cannot rely on Canadian law to protect your interests.
2. No Investor Compensation
Unlike IIROC-regulated firms, JustMarkets does not offer protection through the Canadian Investor Protection Fund (CIPF).
3. High Leverage Risks
JustMarkets offers high leverage (up to 1:3000 in some cases), which exceeds what is legally allowed in Canada. This increases risk exposure for traders, especially beginners.
4. Lack of Transparency
Offshore regulators such as the Seychelles FSA have far looser requirements around transparency, audit, and investor fund protection.
5. Potential for Scams
Although JustMarkets has not been proven to operate as a scam, the history of unregulated brokers shows a pattern of manipulative practices, including price manipulation, account freezing, or fake bonuses with harsh terms.
What Are the Legal Alternatives to JustMarkets in Canada?
If you're looking for a legal and safe trading experience in Canada, you should choose a broker that is:
· Registered with your provincial securities regulator (e.g., Ontario Securities Commission).
· A member of IIROC.
· Offers CIPF investor protection.
Some IIROC-regulated brokers in Canada include:
· Questrade
· Interactive Brokers Canada
· CMC Markets
· TD Direct Investing
· National Bank Direct Brokerage
These firms offer competitive spreads, solid platforms, and access to forex, stocks, ETFs, and other financial instruments—all under the full protection of Canadian financial law.
Why Do Some Canadians Still Use JustMarkets?
Despite the legal and financial risks, some Canadian traders continue to use JustMarkets due to the appeal of:
· Higher leverage
· Low minimum deposit
· Access to cryptocurrency CFDs
· Simpler registration process
However, these benefits come at the cost of zero legal protection. It is also worth noting that if you suffer a financial loss due to broker misconduct, you will have no way to recover your funds under Canadian law.
Is There a Chance JustMarkets Will Be Legal in Canada in the Future?
As of now, JustMarkets has not applied for regulatory approval in Canada. If the company wants to operate legally in the country, it would need to:
· Register with each provincial securities commission.
· Become a member of IIROC.
· Meet strict requirements on capital, compliance, and transparency.
This is a lengthy and expensive process. Unless JustMarkets announces specific plans to enter the Canadian regulatory market, Canadian residents should assume the broker will remain unauthorized indefinitely.
Final Verdict: Should You Use JustMarkets in Canada?
Absolutely not. While JustMarkets may offer attractive features, it is not legal to use this platform as a Canadian resident. Trading with JustMarkets puts your funds and personal information at unnecessary risk, all while bypassing the safeguards provided by Canadian regulatory bodies.
If you are serious about trading and protecting your capital, stick to a licensed IIROC member firm. These companies offer both safety and performance—without the legal gray areas.
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