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Forex Trading in Canada 2022

Welcome to Forex Canada. Our team is dedicated to connecting Canadian traders with the best forex brokers in Canada. FX traders can feel safe and confident choosing from any of our recommended list of Canadian brokers for beginners.

Are you interested in forex trading Canada and looking for the best forex broker to get started with? Our Canadian forex broker comparison helps here. For nearly 15 years, our team of financial experts has evaluated the best forex providers to make your choice easier. Find out about the most important criteria when choosing a broker.

Compare Top Forex Brokers in Canada

Here are our top-rated forex brokers, independently reviewed and recommended by Forex Canada’s team of experts:

How Our Broker Reviews Work

Safe and Secure Forex Trading Canada
Due to the overwhelming number of Canadian forex brokers, traders have a huge number of trading options to choose from. Even though it all comes down to personal preference, we’ve put together a list of the most popular online trading options that you should know about if you want to have a great time trading.

In contrast to many other comparison websites, on this site, we present the safest providers with the best conditions for traders. As traders with many years of experience, we have tested many forex brokers and still use some of them. A good provider should have certain characteristics that guarantee good and safe trading.

That is why we constantly update our ratings to ensure Canadian traders are getting the latest information on the foreign exchange market.

A good forex provider should have these characteristics:
forex broker checklist

  • Regulated and licensed by an official financial regulator
  • Professional support
  • High security of customer funds
  • User-friendly and flexible trading platform
  • Good trading conditions and small fees
  • Fast order execution
  • No requotes (cancellation of the order)
  • Free demo account
  • Fast deposit and withdrawal of customer funds.

Quick Help in Choosing the Best Forex Broker in Canada

forex broker CanadaMost Fx brokers in Canada have a foreign place of business and only operate a branch in this country. Top forex brokers Canada offers some advantages. Forex traders in Canada benefit from reliable regulation by the Investment Industry Regulatory Organization of Canada (IIROC), and also the Canadian Investor Protection Fund (CIPF) which protects the invested capital to a certain extent. Anyone who opts for a broker based outside of Canada should in any case pay attention to the regulations.

Regulation is a critical factor when choosing the best forex broker. You should confirm that a broker is regulated before signing up.

Consider the various account types on offer at your broker; most brokers offer swap-free Islamic accounts, and a few offer unlimited demo accounts to practice with.

Top 10 Forex Brokers in Canada

We have searched the internet to find the very best forex brokers Canada in 2022. We’ve compared all the top online brokers out there to find the best of the best. Find the top 10 trading sites:

  1. FXCC Broker – Best overall broker with tight spreads
  2. Fusion Markets – Lowest commissions Canadian broker
  3. BlackBull Markets – Top ECN trading broker in Canada
  4. easyMarkets Broker – Good platform with guaranteed stop losses
  5. Forex.com Broker – Best for technical analysis
  6. Fpmarkets – Best forex demo account
  7. Eightcap – Interactive platform with the very low fees
  8. LegacyFX – Offers great educational materials
  9. Avatrade – Best for market research analysis
  10. FXChoice – Best Canadian broker with low FX swap rates

Forex brokers Accepting Canadian Clients

Why Compare Canadian Brokers

In order to actively start online forex trading in Canada, you first need a Canadian forex broker who enables you to trade online. The forex broker provides an online trading platform on which you can trade different currency pairs.

Due to the increasing interest in forex trading, the number of brokers in Canada has also increased in recent years. Not all providers are similar when it comes to trading offers, conditions, and other services. In addition, every trader has his own needs and techniques. It’s therefore worth taking a more in-depth look and comparing Canadian forex brokers well with one another. At Forexcanada we therefore introduce you to the best and most popular brokers where you can get professional tools for foreign exchange trading.

Canadian forex brokers

What to consider When Choosing a Forex Provider

The decision for a particular forex provider should be made after a thorough examination of the products and services. Certain quality criteria can be set up here, which provide information about how well a company performs in comparison. Our tests are based on the following factors:

Leverage

The so-called leverage allows you to move significantly more extra money than what has actually been deposited. Leverage is really a loan from the broker that’s granted for the duration of the execution of a trade. Below are recommended leverages for some popular instruments:

  • 100: 1 for major currency pairs
  • 300: 1 for other currency pairs, gold and major indices
  • 100: 1 for commodities and secondary indices
  • 100: 1 for stocks
  • 200: 1 for cryptocurrencies

With a 100-fold leverage on the liquid forex pair EURUSD, you can open a position over 3,000 dollars with a deposited capital of 100 dollars. However, the lower the leverage, the lower the risk. Therefore, beginners should first get to understand the leverage effect in a demo account and begin carefully with small amounts.

Regulation

With a 100-fold leverage on the liquid forex pair EURUSD, you can open a position of over 3,000 dollars with a deposited capital of just 100 dollars. However, the lower the leverage, the lower the risk. Therefore, beginners should first get to understand the leverage effect in a demo account and then begin carefully with small amounts.

The major forex broker regulators are:

  • United Kingdom – Financial Conduct Authority (FCA)
  • Canada – Investment Industry Regulatory Organization of Canada (IIROC)
  • Continental Europe – Cyprus Securities and Exchange Commission (CySEC)
  • Australia –Australian Securities and Investments Commission (ASIC)
  • Africa- Financial Services Conduct Authority (FSCA)

These international regulators have good ratings. They also have strong oversight, and swift enforcement of sanctions on fraudulent brokers.

A trustworthy broker should be under the regulation of a minimum of one of the main regulators. Brokers that are regulated by more than one regulator are more reliable.

Spread

The so-called spread is nothing more than the difference between the bid and ask price of a forex pair or another underlying asset; i.e., between the buy and sell price. Forex and CFD brokers indicate the spreads for the values offered in lists on their websites and via the trading platform, in pips. A pip is the unit of measure for price fluctuations in the fifth digit.

In practice, this means: you’re trading the forex pair EURUSD, which is displayed in the chart with a price of 1.2000. The broker will now specify two rates – in our example, 1.2002 and 1.2000. The spread you will be charged in this case is 2 pips.

Fees and costs

The costs involved in trading are quite different. Many brokers only charge the spread; others also charge commissions per order. Particular attention should be paid to hidden fees that may also apply. These include fees for deposits, withdrawals, and account inactivity.

Minimum deposit and account models

If you open a trading account with a forex broker, you usually have to make an initial deposit of a specified minimum amount. This depends on the provider, but often also on the account type. The minimum deposit isn’t required with most Canadian brokers. However, deposits with some providers can also be extremely high, which thus provides information about which target group a broker would like to address with its offers.

Usually you can choose from different trading accounts or service levels with one and the same Canadian forex broker, with which the minimum deposit is graded. With a higher initial deposit, traders gain additional services such as expert analyzes, personalized training courses, or access to information from providers such as Trading Central. In order to actually be able to trade currency pairs profitably, however, a certain share capital is required, which is between 500 and C$1,000.

Underlyings

Most brokers offer other tradable underlyings in addition to fx pairs. This often includes international stock trading, stock indices, index funds, precious metals, agricultural commodities, and much more. Canadian traders can also participate in the price development of cryptocurrencies via CFDs. Therefore, comparisons of the best stock brokers and commodity brokers are also part of the offer on Forexcanada.ca.

Choosing the best forex brokers

Most Popular Forex Trading Accounts

Online Brokers offer different types of trading accounts for traders to choose. The first distinction of account types is between the live accounts, demo accounts, and Swap-free accounts.

Live Accounts

These accounts use real money, and everything that you neutralize in this sort of account will affect your profit or loss.

Demo Accounts

These are accounts loaded with virtual money and don’t expose a trader to any risk. Demo accounts allow traders to check the trading platform, research area, and trading conditions before committing real money. Most demo accounts are time-limited but are easy to reactivate.

Managed Accounts

Managed forex accounts are high-reward and very high-risk investments. When you open this type of account, an experienced trader or a group of traders will trade your money along with the money of other investors.

Islamic (Swap-Free) Accounts

Islamic accounts, or swap-free accounts, are an optional trading account type that allows forex traders to be compliant with the principles of shariah. This account type follows the Islamic Shariah principle and doesn’t charge interest for overnight positions.

VIP accounts

You will find VIP accounts on the platform of many brokers. This type of account is for traders that trade with a very large deposit. The broker will give such traders the best trading conditions. For one, trade execution will be very fast. The VIP account holder will also enjoy a very tight spread.

Standard accounts

Traders holding this type of account can access a minimum of one standard lot size. This is the same as 100,000 units of the base currency. 1 pip of a forex pair with its base on the U.S dollars is the same as $10.

Mini accounts

Mini account holders can place trades with a minimum of one mini lot size. So, a mini lot stands for one-tenth of a standard lot. This means that a mini lot is a tenth fraction of a standard lot. It also translates to 10,000 units of a base currency.

Micro accounts

One other type of account is the micro account. In this type of account, the lot is called a micro lot. A micro lot is the same as 1,000 units of a base currency.

 

How to Open Forex Trading Account

First, you have to open a fx trading account with one of the Canadian brokers. This is a difficult undertaking, especially for beginners. We have listed a good choice of forex official websites below to help you get started.

Get Started with forex trading in Canada
Comprehensive mobile offer
Massive bonus offers
No MT5 platform
User-friendly app
100% Canadian
Simple trading app
Short sign-in form
No bonus offers

Every broker offers an extra area on their website where the online forex account can be registered. The registration procedure can vary from broker to broker, but is essentially based on the following basic steps:

  1. Visit the broker’s website and fill out the online application form.
  2. You will receive an email about identification. Please follow the identity verification instructions in the email.
  3. Deposit funds into your trading account.
  4. Download the broker’s trading platform.
  5. Make your first trade.

Best Forex Trading Strategies to Use

In any type of trade you do, it is best to participate in forex online trading if you want to trade based on a strategy. In the past, it has been shown time and again that acting out of the gut usually leads to total losses. Therefore, almost all experts in forex trading recommend choosing a suitable trading strategy first and only then acting on the basis of this strategy. There are numerous individual trading strategies that Canadians can use when trading online. Here are the types of trades to consider:

  • Trading News : This trade takes advantage of the acute volatility exhibited by currency pairs after the discharge of important economic or geopolitical news.
  • Day trading : This trade limits all transactions to one trading session.
  • Scalping : This high-volume trade involves taking advantage of very short-term market moves. According to forexonlinebrokers.com, scalpers enter and exit the market to capture small profits, a couple of pips at a time.
  • Swing trading : The classic “buy low, sell high” trade, also known as swing or momentum trading, involves entering and exiting the market-supported momentum technical indicators. Swing traders can, and sometimes do, take overnight positions.
forex trading

The most traded currency pairs in Canada

forex trading pairsThere are many currencies that are traded daily in the forex market. Each currency is paired with another to make a currency pair. Some currency pairs are traded more than others.

  • Major pairs : The currency pairs in which the U.S. dollar is contained and either the Euro, Yen, or the British Pound are called major pairs. These are the most traded pairs in the Canadian forex markets. They are traded at consistently high volumes. The major currency pairs allow closing out positions at the desired prices at any time due to their trading volumes. For the same reason, erratic price swings tend to be the exception. With higher volume, the market also becomes slow-moving.
  • Match Bonus – currencies that consist of the Euro, Yen and the UK Pound but not paired with the US Dollar are minor pairs. Major currency pairs have a bigger market share compared to minor pairs.
  • Exotic Pairs – the exotics (Exotic Currency Pairs) are made up of major currencies paired with the currencies of emerging economies. The exotic currencies are being traded more and more often by speculators.

How To Choose Best Trading websites

choosing brokersFirst of all, you need to be careful about choosing the right trading website. It is very important to use professional trading websites. A good trading site offers a convenient interface for traders to invest in financial markets. There are a wide variety of different Canadian trading sites that specialize in foreign exchange trading. Therefore, it is important to choose a suitable website that offers the best services, conditions, and commercial objects. When choosing a trading website, certain criteria should be checked in order to assess the quality. We have put together some information for you:

Check for available foreign exchange platforms

Trading platforms differ from one broker to another. The number of trading platforms that a broker supports differs from what you can find with another broker. Virtually all brokers support the MetaTrader 4 (MT4) trading platform. Many brokers are now providing MetaTrader 5 (MT5) trading platforms for their customers. You can also find many brokers offering proprietary trading platforms. A proprietary trading platform is one that is specially developed by the broker for its clients. Bear in mind that trading conditions differ from one platform to another. For example, the spread on the proprietary trading platform can be lower than what you get on MT4 or MT5 for that particular broker. Brokers use this to attract their customers to use their proprietary trading platforms.

Top foreign exchange platforms in Canada
Platform
Brief Description
MT4MT4
A popular online trading platform which can be used to automate your trading.
MT5MT5
MT5 offers a few more order types compared to MT4, including Stop Limit Buy and Stop Limit Sell.
TradingView logoTradingView
Prevides the real-time data and browser-based charts.
eSignaleSignal
The best platform for technical and chart analysis.
MetaStock logoMetaStock
An award-winning market data platform and charting software.

Additionally, you need to check if that trading platform is user-friendly or not. If you are a beginner in forex trading Canada, you should go for a broker that offers a user-friendly platform. This way, you will be able to navigate such a platform easily. Such foreign exchange platforms will also make placing trades a lot easier for you.

Check for educational tools

The educational tools available on trading platforms depend on the brokers. So, go for a broker that offers a lot of educational tools on its trading platform. A good fx market broker will offer many educational tools. These tools will help the trader to learn more about forex trading. The tools will also help the trader to make informed trading decisions. When you want to venture into online trading as a beginner, you need such a broker for help. A broker that provides many educational tools is the right one for new traders. You can use the educational tools to form a background on forex trading. A good fx company should offer an economic calendar to its customers. The broker should also provide basic education about the foreign exchange market. This way, the new trader can learn from the basics on the broker’s platform.

Additionally, the broker should provide a series of technical analysis tools. The number of tools for technical analysis differs from one broker to another. You should pitch your tent with a broker that offers so many of them. Also, check if the broker offers charting tools before you register there to trade forex. All these tools are very important considerations when looking for brokers reliable for forex trading for beginners.

Consider execution speed

One other important factor to consider when choosing a safe forex broker in Canada is the execution speed of the broker. A good broker will execute your order as fast as possible. A good broker will not take more than a couple of seconds to execute the trade. If the execution speed is slow on that broker, then you should using avoid such a broker. A slower execution speed can cost you a lot of money. If you are a scalper, for example, you need a broker that provides fast execution. With such a broker, there is an assurance that you will get the best price possible on each trade. Execution speed is very important during high volatility periods in the forex market.

Consider customer support

This is about the best and the first thing you should consider when choosing a forex company for currency trading in Canada. If customer support is poor, you should never register with such a broker. It does not matter if the broker offers all the best trading tools in the world. It also does not matter if the trading platform looks attractive. None of these things are as important as top-quality customer service.

Check the contact methods available first before you register with that broker. Can you get in touch with them via email? Is it possible to contact them via phone call? You can even communicate with some brokers via live chat and their social media platforms. Aside from that, find out how long it takes them to respond to your messages. You can get a better picture of this by reading forex reviews about the brokers. Make sure you read the forex reviews from neutral sources. The reviews can give you an idea of what to expect from the brokers.

Advantages of trading with a Canadian broker

Every forex trader is free to choose any broker of his choice. Registering with a forex company domiciled in Canada will give you an incomparable level of security as a client. It will also ensure complete protection for the funds you have deposited into the account of the broker. The Canadian Investor Protection Fund (CIPF) is one of the many regulatory bodies for the foreign exchange market in Canada. The company gives forex traders a guarantee of $1 million in the form of compensation.

If an exchange broker fails, the customers of that fx exchange broker will never lose their funds, thanks to CIPF. There is, therefore, a consistent cover for the funds of the customers at all times. The security of funds is one of the major factors that bother many forex customers across the globe today. This is because there is a possibility of the Canadian forex company going bankrupt due to unexpected volatility in the forex market. Modern forex market regulators are always wary of eventualities in the forex market, and they always consider this when they are developing their regulatory guidelines. This will help to prevent situations of insolvency of the broker. However, there is no single broker that can be said to be immune to bankruptcy or liquidation, which is why organizations like CIPF are so important.

As a result of this, the forex trader needs to register with a Canadian fx exchange company, especially if the trader plans to start forex trading with a large sum of money. This gives an assurance that the forex trader can be compensated for his lost fund if the forex trading company goes bankrupt.

Ease of trading

Access as a forex trader to compensation of up to $1 million will give you more adaptability and freedom when trading forex. It will give you the ability to get more profit without being bothered by the thought of losing your fund. You will never get worried about the fx trading company closing its business and leaving you hanging. The regulation of brokers and protection of funds for traders in Canada are even better than what obtained in the UK. In the UK, for example, brokers that lose their funds to liquidated brokers can only access a paltry £50,000 as compensation. This means that compensation made available by the CIPF is at a very special level entirely.

Why you should try new Canadian forex sites:

  1. Clean user-interface
  2. Opportunity to start fresh
  3. Innovative trading features
  4. Attentive customer service

Trading rules in Canada vs. the United States

Forex brokers in Canada have a different set of trading rules compared to their American counterparts. For example, forex exchange brokers in the United States need to evolve to CFTC and NFA guidelines like the FIFO rule. They do not allow hedging and they can only offer a maximum leverage of 1:50. This makes the rules in the United States among foreign exchange trading companies to be restrictive, which has an impact on the forex traders in that country.

Power of regulatory agencies

Power of regulatory agenciesThe regulatory authorities in the United States play the role of policymakers in stopping their citizens from losing money. The United States, however, has put in place certain regulatory changes to reduce risk. Some of the regulations are completely against the freedom of the retail trading markets. Be that as it may, the United States has put some regulatory changes in place to reduce the risk associated with forex trading in the country.

On the other hand, exchange rate companies in Canada do not enforce any restrictions on trading.

Be that as it may, the regulatory agencies in the country may make some changes in their policies from time to time. This ensures a considerable reduction in fraudulent financial practices among fx exchange brokers in the country.

Each regulatory agency in Canada has a different responsibility in terms of regulating forex brokers for Albertans and other Canadian provinces. Below are some of the main regulatory agencies responsible for enforcing Canadian forex regulation:

  • IIROC – Suite 2000, 121 King Street West , Toronto, Ontario, M5H 3T9
  • Alberta Securities Commission – 250 5 St SW SUITE 600, Calgary, AB T2P 0R4, Canada
  • Canadian Securities Administrators – Tour de la Bourse, 2010-800, Square Victoria, Montréal (Québec) H4Z 1J2
  • British Columbia Securities Commission – 701 W Georgia St, Vancouver, BC V7Y 1L2, Canada

International Brokers for Canadians

Canada has shown leniency towards receiving and sending money to and from international brokers and forex traders. The fx trading companies in the country adhere to all the anti-money laundering laws existing in the country. It is illegal to send money via any means to a forex trading company outside the shores of the United States and some other countries.

Additionally, the United States enforces very strict regulations on all international payments, especially because of threats to national security. Because of this, citizens of the US have limited freedom when transferring funds from one place to another. Such restrictions are absent in Canada. As a result, forex traders in Canada have the freedom to move capital intended for forex trading to any broker, both local, and international. However, both the trader and the broker must keep an accurate record and statement of every transaction for future verification.

The laws existing in Canada state that brokers can operate in the country without obtaining any regulatory license. Be that as it may, a broker will enjoy several benefits if it gets regulated and holds a regulatory license in Canada. The limited regulation of the forex market in Canada exposes traders to risks, especially if the broker fails.

First Regulatory agency in Canada

You can trade forex in Canada with any of the exchange brokers that are not regulated in the country. This is because the law of the country is lenient on these exchange brokers. Bear in mind that an exchange broker doesn’t need to bear a legitimate Canadian regulatory license before it can operate successfully in the country. This has made the companies more competitive and forced many of them to be up and doing towards satisfying their clients.

Be that as it may, a foreign forex broker can only operate in Canada if Canada has a bilateral relationship with the country in which the fx trading company is domiciled. This helps to keep scam practices and monetary fraud in check. To further reduce the risk of fraud, a Canadian forex trader should register with a broker located in Canada.

There are many great forex trading websites in Canada. Our favorites are easyMarkets, BlackBull Markets, Avatrade, and Fpmarkets, because they all have a comprehensive trading offer and great mobile apps. If you want to see the full list of top brokers, just click the button below. Best forex companies in Canada

Conclusion

The forex brokers in Canada comparison from Forexcanada.ca makes it easier for you to choose the right broker for all areas. Make use of our reviews and the experience of other traders to successfully start trading.

A good, reputable and best forex broker in Canada should have the following advantages:

  • Low minimum deposit
  • Leverage in accordance with the Canadian binding guidelines
  • Intuitive trading platform with powerful chart tools
  • Free, preferably open-ended, demo account

Forex Trading Canada FAQs

How to trade forex in Canada?

You trade forex through a Canadian forex broker or sometimes through a bank. Then you speculate on the price movements of currency pairs without owning the currencies themselves. If you think the price of a currency pair is trending down, you can go short instead of long.

Is forex trading legal in Canada?

Yes, the trade regulation law regulates forex trading and does not prohibit it. This means trading online is legal. However, there are some restrictions on which broker you can trade with. Canadians are allowed to trade with brokers licensed by the IIROC (Investment Industry Regulatory Organization of Canada).

What is forex trading and how does it work?

Forex ( FX ) stands for Foreign Exchange. When trading with forex, two currencies are traded against each other: buying one currency results in the simultaneous sale of another. Currencies are always traded in pairs, which is why one also speaks of currency trading or currency pairs.

Can I trade on my mobile phone?

Of course! Forex trading apps are designed with mobile experiences in mind. The method is easy, safe and fast – tailored to your needs. Choose from our best mobile trading apps and trade stocks, forex and CFDs from your smartphone or tablet whenever and wherever you want.

Are there Canadian forex brokers with no fees?

The market makers only charge their traders the spread. Some waive fees for deposits and withdrawals and even waive minimum deposits.

Can I trade forex with $1?

Yes, it is possible to do 1 Dollar forex trading in Canada.

What time does the forex market open?

In general, traders can trade from Sunday evening to Friday night. The forex market is open 24 hours a day from 17:00 EST on Sunday until 16:00 EST on Friday.