Major interest in online forex trading in the last years have increased the demand for local forex brokers. Today currency exchange is available to any of the interested parties, whether you live in Canada, United Kingdom, South Africa or USA. Residents of almost all countries can take advantage of online fx trading and participate in world most vast market, open almost every single day, 24 hours non stop.
Canadian dollar, or as traders call it, the loonie, is one of the most favored currency. You might be surprised to know that this is a fact not just in Canada, but all over the globe, due to the stability of the currency and reputation of the political and economic systems.
Canadian forex broker must be registered with Investment Industry Regulatory Organization of Canada (IIROC) is required to be regulated by CIPF, aka Canadian Investor Protection Fund, which basically makes sure that in case your trading account experiences losses to to mischief of the broker itself, your lost funds will be refunded.
Extra regulations might be imposed on registered brokers in specific provinces such as Quebec and Ontatio, however, unlike UK forex brokers, Canadian brokerage allows the use of hedging, maximum leverage amount is not restricted and there is no need to close a previous position in order to open a new one for a specific currency pair.
Despite the perks, there aren't that much Canada - based forex brokers, since Canadian citizens are not limited to trade only with their local brokers, but can trade with any off-shore company they wish to. That being said, if you still wish to seek a Canadian one, there are major brokers who do have representative offices in the country to be able to serve Canadian customers better.
Canada is definitely one of the attractive destinations to set a brokerage company in, due to not so strict regulation. We have collected a comprehensive list of brokers which have a local office center in the country. Canadian Forex brokers open their doors to clients all over the world, not necessary only for the locals.
Top Forex Brokers in Canada
|LiteForex||7||yes||1:500||30% + 15%||Metatrader 4, Metatrader 5, WebTerminal||10||Webmoney, Bitcoin, Advcash, Credit Card (not working for all clients)|
|AvaTrade||6||yes||1:400||100%||AvaTrader, MetaTrader 4, MetaTrader Floating Spread, Mac Trading, Web Trading, Mobile Trading, Automatic Trading, AvaOptions||100||Credit Cards, Debit Cards, Skrill, Wire Transfer, PayPal, Neteller, WebMoney|
|PrimeXBT||6||yes||1:1000||PrimeXBT, Turbo||1||Credit Cards|
|Anzo Capital||6||yes||1:1000||MetaTrader 4||100||Webmoney, Skrill, Neteller, Credit Cards|
|FXCM||5||yes||1:200||-||Trading Station II, MetaTrader 4, Active Trader, Forex System Selector||250||Credit/Debit card, Online Check, Bank Wire, Paper Check|
|Forex.com||4||yes||1:200||-||ForexTrader platform (in-house), MetaTrader 4||50||wire transfer, Credit/Debit Card, Check|
|Oanda||3||yes||1:50||Metatrader 4, FXtrade||1||check, Credit cards, PayPal, Wire transfer|
|Freshforex||3||yes||1:1000||+5% to each cryptocurrency deposit; get 300% for each deposit||Metatrader 4||1||WebMoney, ePayService, Skrill , FasaPay, ADVCash, Perfect Money, Neteller, OnlineNaira NGN/USD, E-wallets for the Philippines, Visa/Mastercard/Maestro USD/EUR, Local Depositors, Bitcoin, Internet Banking|
|Pepperstone||3||yes||1:500||100% Match Bonus||Metatrader 4, Metatrader 5, cTrader, cAlgo, cMirror||200||bPay, credit cards, Paypal|
|LMFX||1||yes||1:1,000||100% match bonus, 15% recovery||Metatrader 4, Webtrader||50||credit cards, Fasapay, neteller, okpay, skrill, wire transfer|
|Oinvest||0||yes||1:200||Samsung Galaxy, iPhone||Metatrader 4||200||Skrill, Neteller, Credit Cards|
|ForexMart||0||yes||1:1,000||$150 no deposit needed||Metatrader 4||1||credit cards, neteller, skrill, paypal, paxum|
How To Choose a Forex Brokerage if you are Canadian trader
You have to decide on your currency pairs and trading style. Practice with demo account before you invest any real money into the game. Keep in mind that Metatrader 4 platform is one of the popular and safest out there and is available for either download and web-based including mobile versions.
Whether a complete newbie or experienced trader, check out terms and conditions of each broker you have selected to trade with. Little hidden fees, high spreads, limitations on trading styles can be a huge disadvantage for your investing career.
What you need to look out for the most:
- Spreads – The difference between SELL and BUY price in points (pips) anything over 3 Pips for the most liquid EUR/USD is usually too much and you should avoid. Spreads can be variable or fixed, it usually depends on the account type.
- Swaps – the fee you pay in order to keep the contract open over night. There are Islamic accounts with some brokers with swap-free options.
- Commissions per lot traded – usually charged with ECN and STP accounts where spreads are fixed.
- Respected regulation authority such as DFSA, FCA UK, Cysec
- Segregated accounts for your trading funds (meaning that your money is kept separately from the company's finances)
- Satisfactory reviews from real forex traders from Kenya and around the globe
- Various payment methods with fast deposit and withdrawal options
- Low spreads and outstanding trading features
- Reputable trading platform such as Metatrader 4
- High quality customer support via chat email and phone
Is forex trading illegal in Canada?
How to Verify IIROC Regulation
To identify if a forex broker is regulated as Dealer Member by IIROC, the first step is to identify the registered name from the disclosure text at the bottom of the broker's homepage.
About the IIROC
IIROC is a national self-regulatory organization (SRO) that was established as a non-profit corporation on June 1st, 2008 as part of the consolidation of the Investment Dealers Association of Canada (IDA) and the Maket Regulation Services Inc. (RS). IIROC is recognized by the Canadian Securities Administrators (CSA) which includes all Canadian provinces including the following regulatorty bodies in Canada:
- British Columbia Securities Commission
- Alberta Securities Commission
- Saskatchewan Financial Services Commission
- Manitoba Securities Commission
- Ontario Securities Commission
- Autorité des marchés financiers
- New Brunswick Securities Commission
- Nova Scotia Securities Commission
- Prince Edward Island
- Newfoundland Securities Commission
Is forex trading legal in Ontario?
Get Started with Forex in Canada
Find an online forex broker that accepts clients from Canada. Open a margin account with that broker. Deposit funds using a payment method the broker accepts. Download the broker's trading platform or one you can use with that broker.
Can you make money forex trading in Canada?
Yes – you can generate income forex trading in Canada. However, most FX traders lose money. New traders should enter the forex market aware of the risks and should not invest more than they can afford to lose.
How do we rank and review?
Our team consists of traders with more than 15 years experience in forex. We have collected, reviewed, ranked and test driven more than 300 online international forex brokers and have created a full 2021 Forex Broker Review guide for our visitors.
Top 5 Tips for Choosing the Best Canadian Forex Broker
- Choose a Forex broker in Canada that is regulated by the Investment Industry Regulatory Organization of Canada, or IIROC.
- Choose a Forex broker in Canada that also gives you the best Forex trading platform in Canada for your needs.
- Find a Forex broker with good execution speeds to make certain you get the best prices when executing your trades.
- When trying to find the best Forex broker in Canada, you want to make sure they have great support. For example, can they be contacted by phone as well as email?
- The best Forex brokers in Canada will have tight spreads and will sometimes allow you to choose between floating and fixed spreads to meet your needs.
Whether you’re a Canadian resident or not, finding the best Canadian Forex brokers can help you find the best investor protection available anywhere in the world as well as access to some of the best Forex trading platforms and online trading software.
There is a great deal of choice amongst Canadian Forex brokers from account types, trading platforms, trading software, and margin requirements. Our team of analysts and experts at DailyForex have searched and found the best Forex brokers in Canada so you do not have to do the hard work.
Forex Regulation in Canada
Getting Started with Forex Regulations in Canada
The first thing to know about Canadian Forex brokers is that they are classed as “investment dealers” by the country’s regulators and as a result Forex regulation in Canada is governed by the Investment Industry Regulatory Organization of Canada, or IIROC. This is great news because IIROC has some of the best rules anywhere in the world making Canadian Forex brokers amongst the safest in the world. If you are looking for the best Forex broker for your trading, Canadian Forex brokers are a great please to start looking.
Canada is uniquely divided into multiple jurisdictions along the lines of their provinces and territories. Each province has its own regulatory body that can provide additional rules over and above IIROC requirements. For example, residents in the province of Alberta have to meet additional conditions, such as their net worth and level of trading experience, before being permitted to open a Forex trading account. Fortunately, many of the local layers of regulation have been recently harmonized, making it more consistent nationally.
Canada is one of the very few developed nations in the world that allow its citizens to invest their money with overseas Forex brokers that are not regulated in Canada. If you want the full protection of IIROC regulation as a trader, it is up to you to choose a Forex broker that is regulated by IIROC.
Understanding IIROC Regulation
IIROC has a comprehensive rule book for Canadian Forex brokers that govern how clients’ deposits are held, how much leverage is allowed and what information must be disclosed. When a Canadian Forex Broker is regulated by IIROC, it also means they will be protected by the Canadian Investor Protection Fund (CIPF) which covers depositors up to $1,000,000 each if a Forex broker fails. The best Forex brokers in Canada will have this level of coverage.
IIROC will set out a Canadian Forex brokers’ minimum capital requirement and screen every single employee for suitability of professional qualifications and good character. The maximum leverage which may be offered to any retail client by an IIROC regulated Canadian Forex broker is 50 to 1, which is a relatively generous limit for a Western OECD nation: in comparison, in the European Union, the maximum leverage is 30 to 1. Unless you are trading a very small account, 50 to 1 is enough leverage to enable profitable trading but still control risk so you do not lose your entire online Forex trading account overnight.
How to Verify IIROC Regulation
It is easy to verify which Forex brokers in Canada are covered by IIROC. You can do that by scrolling down to the bottom of the homepage of the Forex broker to see their regulatory information. Some Forex brokers in Canada also put this information in the “About Us” section of their websites. You can visit IIROC’s website directly where it will list which Forex brokers in Canada they cover – this is the best way to verify that the information provided by the Forex broker in Canada is correct.
Do the Same Trading Rules Apply to Canadian & American Forex Brokers?
Different rules apply to Forex brokers in Canada compared to Forex brokers in the US. For example, there are different leverage and margin rules between Forex brokers in Canada versus the US. Also, many Forex brokers in the US will not accept accounts from Canadian residents. If you are looking for a broker that offers the best currency trading platform in Canada for your trading needs, all the trading platforms offered globally are available from Forex brokers in Canada. For example, MetaTrader 4 and MetaTrader 5 are a standard for many Forex Brokers in Canada.
Forex Trading in Canada
The Advantages of Choosing Forex Brokers in Canada
The biggest advantage of picking Forex brokers in Canada is the strong regulations they must follow that ultimately protects customers. When you look at Forex Canada, it has amongst the best investor protection in the world.
Minimum Deposit Required for Trading with Canadian Forex Brokers
There are no minimum deposit requirements for Forex trading in Canada. It will depend on the broker, the type of trading account you want to open, for example, a mini account or a standard account, and the currency trading platform you want to use.
Choosing a Forex Broker as a Canadian Trader
Naturally, you want the best Forex broker for your online trading. This means finding a broker that has the best forex trading platform in Canada and the best additional software to ultimately give you the best chance of success.
These allow your trade sizes to be as little as one micro lot. A micro lot is 1,000 units of a base currency, or a hundredth the size of a standard lot. One pip of a currency pair based in U.S. dollars is equal to $0.10 when trading a micro lot. For example, if you are in a EUR/USD long trade and the price moves up by 150 pips, your trading profit is $15 for every micro lot you trade.
Mini accounts allow you to place trades at one mini lot or greater. A mini lot is one-tenth the size of a standard, or 10,000 units of a base currency. One pip of a currency pair based in U.S. dollars is equal to $1.00 when trading a micro lot. For example, if you are in a GBP/USD short trade and the price moves down by 50 pips, the profit is $50 for every mini lot you have traded.
These typically have a minimum trade size of one standard lot. A standard lot is the equivalent of 100,000 units of the base currency. One pip of a currency pair based in U.S. dollars is equal to $10.00 when trading a standard lot. For example, if you are in an AUD/USD long trade and the price moves higher by 25 pips, your profit is $250 for every standard lot.
Many brokers offer “VIP” accounts for customers with high deposit levels. Aside from getting the best trading conditions in the form of execution speed and spreads, VIP accounts normally come with a dedicated account manager to handle the trader’s requests.
Forex typically involves interest paid or received when holding positions for longer than a day. This is incompatible with Islamic finance principles, so Islamic Forex accounts were created to meet this gap in the market. These types of accounts replace the variable interest charge with a fixed charge for overnight positions or no charge at all thereby making currency trading compatible with Islamic finance principles.
Minimum Deposits for Different Account Types
When you are deciding what type of account you want, the biggest factor will often be the amount of money you have available to deposit with your Forex broker in Canada. Micro accounts and mini accounts will normally require a smaller deposit than a standard account. For example, if you want to start with as little as a $100 deposit, you will probably be eligible for a micro account. In comparison, a standard account will require you to fund $1,000 or even $10,000.
About the Best Forex Brokers Canada Review
Forex Explore is a financial portal that strives to provide forex traders of all backgrounds with reliable information. Our detailed Forex Brokers Canada review was conducted by our independent analysts, which based the review on a wide range of factors including:
- The regulatory framework for Canadian brokers
- Financial transaction cost (commissions and spreads)
- Range of markets available
- Trading platform solution
- FX brokers with high leverage
- Minimum deposits (deposits and withdrawal options)
- Direct market access
Only the best Canadian forex brokers have made it into our ranking system. Our proprietary star ranking system ensures that you will avoid scam FX brokers. The selection of top forex brokers in Canada was narrowed down to only 4 names, so forex traders won’t get overwhelmed trying to find a broker to fit their needs.