TORONTO – September 16, 2019… According to a survey conducted by AvaTrade (one of the world’s most innovative online CFD and FX providers) among 1000 members of the Angus Reid Forum, Canadians are firmly for regulated platforms but get lukewarm when it comes to leverage limits. AvaTrade sought to benchmark Canadian attitudes on trading under evolving regulations in Canada.
Key findings of the survey:
1) Most Canadians think it’s significantly easier to lose money on unregulated platforms
Asked which platform they think they could lose the most money on, Canadian investors said ‘unregulated’ at 83%.
Unless they are under 35…
A significant 32% of Millennial investors aged 18-34 buck the national majority and believe that you can lose more money on regulated platforms.
“This contradiction may simply be a case of younger investors with less investment capital believing that the higher leverage allowed on unregulated platforms might be instrumental in helping them get ‘rich quicker’,” said Daire Ferguson, CEO of AvaTrade. “Higher leverage of course means potentially higher rewards – but it also comes with equally higher risk. A balanced investment portfolio must take this into account – and thus the regulated leverage of 30:1 is set at a more appropriate level to mitigate against such scenarios.
2) Canadians don’t take chances on unregulated platforms:
Nationally, when asked the status of the platform they trade on, 91% of Canadian investors decisively said ‘regulated.’
Atlantic Canada (78%) and the West (87%) supported regulated platforms the least. Ontario supported regulated platforms the most at 97%.
3) Canadians play it safe
Asked which type of platform they find safer to trade on, 91% of Canadian investors said regulated.
Higher-income investors significantly find safety in regulation
94% of Investors with $100k+ of yearly income find regulated platforms safer, compared to 83% of investors with less than $50k of income.
4) Canadians (sort of) agree with regulated Forex leverage limits
Nationally, when asked if they agree with Canada’s 30:1 regulated leverage limit on Forex trades, 56% said it was the right level, 35% said we need more regulation and only 8% supported less regulation.
“This is an interesting revelation, because while the majority support a 30:1 regulated limit on Forex leverage, a significant number of Canadian investors appear to want an increase in regulation.” added Ferguson. “Regulation is key in any market these days. As a broker – The AvaTrade Group is regulated in 7 Global jurisdictions across EU, Asia, Middle East and Africa. The Canadian market is no different and for this very reason Ava is introducing ever more protections into its array of tools designed to assist and protect traders.”
Regionally, Atlantic Canada said we need more regulation the most, at 44%.
Providing even more protection on trades:
With the survey results in mind, AvaTrade is introducing TradeProtect, a new way for Canadians to protect their investments and have peace of mind on all of their Forex trades.
“Essentially, TradeProtect is an innovative tool that will provide added ‘protection’ for all Canadian investors – including both the millennials and professional traders alike – when trading forex.,” added Ferguson. “For a small fee, TradeProtect will act as a virtual bodyguard on Forex trades and reimburse investors in real cash on trades up to $1 Million. For this additional fee – They basically have unlimited upside with limited downside. “
5) Canadians rightly refer regulated platforms to family and friends
Asked what status of platform they would advise for family and friends, 92% of Canadian investors solidly said they would recommend a regulated platform.
AvaTrade is a leading Forex and CFD provider, founded in 2006. The company offers more than 250 financial instruments, including forex, stock, commodity and index CFDs, as well as vanilla options. With 16 offices around the world and headquarters in Dublin, Ireland, AvaTrade operates under six global regulators across the EU, Japan, Australia, South Africa, BVI and the Middle East. AvaTrade’s first and foremost commitment is to empower people to invest and trade with confidence in an innovative and reliable environment, supported by unsurpassed partnerships and collaborations, best-in-class technology, customer service and uncompromising integrity.
Friedberg Direct – powered by AvaTrade technology
The relationship between Friedberg Direct and AvaTrade was formed with the purpose to provide Canadian residents access to AvaTrade’s suite of products, including its multiple platforms, exceptional forex and CFD trade execution and other operational services, while maintaining their accounts with a regulated Canadian firm. All accounts are opened by and held with Friedberg Direct, a division of the Friedberg Mercantile Group, Ltd., a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).
Friedberg Mercantile Group Ltd. is headquartered in the financial district of Toronto, Canada and, with its subsidiaries, manages over $2 billion in assets. The Friedberg Direct division offers its customers direct access to Spot Foreign Currency, Currency Options and Commodity Futures, trading through multiple dynamic online trading platforms. The Friedberg Mercantile Group, Ltd. is a member of the Investment Industry Regulatory Organization of Canada and a member of the Canadian Investor Protection Fund.
Find out more about Friedberg Direct powered by AvaTrade technology at www.avatrade.ca
About the Survey:
These are the findings of a study/survey conducted by AvaTrade from August 23th to August 29th, 2019 with a representative sample of 1000 online Canadians who are members of the Angus Reid Forum. The survey was conducted in English and French.
About the Angus Reid Forum:
The Angus Reid Forum is Canada’s most well-known and trusted online public opinion community, consisting of engaged residents across the country who answer surveys on topical issues that matter to all Canadians.