Yes. CFD trading in Canada is regulated differently from Australia, and some important Australian safeguards will no longer apply to your account. In particular, you will lose the following protections:
- Lower leverage limits: Canadian rules allow higher leverage on some products (up to 50:1 on certain currency pairs, compared with 30:1 in Australia), so you could be more exposed to losses if the market moves against you.
- Automatic close-out: Canadian rules do not require your positions to be closed once your equity falls below 50% of the required margin, so losses may grow further before positions are closed.
- Negative balance protection: Canadian rules do not prevent your account from going into a negative balance, in which case you would be responsible for repaying the debt.
- Binding complaint decisions: You will still be able to escalate complaints to an independent ombudsman (OBSI), but unlike AFCA's decisions, OBSI's recommendations are not binding on Friedberg Direct.
If you would prefer to trade with a broker that is licensed in Australia and which offers regulatory protections to retail clients, you should consider opting out of the transfer.
