Welcome to Forex Canada – the premier guide for forex trading in Canada. Our team is dedicated to connecting Canadian traders with the best forex trading sites in 2021. The traders can feel confident and safe choosing from any of our recommended list of the best forex brokers in Canada. In this guide you will get in-depth fx trading previews on some of Canada’s most popular foreign exchange markets.
Best Forex Trading Sites in Canada
|Forex Brokers||Min. Deposit||Platforms||Rating||Secure Link|
Your capital is at risk
|5/5||Visit Site BlackBull Markets Review|
|Regulators: FSPR, FMA, FSA|
Your capital is at risk
Web platform, MT4
|4.9/5||Visit Site easyMarkets Review|
|Regulators: CySEC, ASIC, FSA-Seychelles|
Your capital is at risk
|4.8/5||Visit Site HYCM Review|
|Regulators: FCA, CySEC, DFSA, CIMA|
Our Process for Forex Reviews
Do you belong to a small group of market participants who are convinced that forex trading is only for professional traders, hedge funds or banks? Let us convince you otherwise. Anyone who has done a little research can be a successful fx market trader. You can find a load of information about 4x trading out there today with each of them claiming to be reliable. We are interested in your progress and will give everything to see you become a successful trader. Our forex trading products and services are not limited to Canada; you can also enjoy what we have to offer from different parts of the world. That’s why we constantly update our ratings to ensure Canadian traders are getting the latest info on foreign exchange market. Here is a look at some of the areas we evaluate in when looking at where to trade forex online:
How to open forex trading account in Canada
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. For further guidance on finding the top forex brokers in Canada, see here.
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:
- Enter the broker’s website and fill out the online application form.
- You will receive email about identification. Please follow the identity verification instructions in the email.
- Deposit funds into your trading account.
- Download the broker’s trading platform.
- Make your first trade.
Types of trade in Canada
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 trade to consider in Canada:
- 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. Day traders will enter and exit positions intranet but they close out all positions by the top of the trading session to avoid the additional risk involved in taking overnight positions.
- Scalping – This high-volume trade involves taking advantage of very short-term market moves. Scalpers nimbly 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, swing or momentum trading involves entering and exiting the market supported momentum technical indicators. Swing traders can, and sometimes do, take overnight positions.
The most traded currency pairs in Canada
There are many currencies that are traded daily in the forex market. Each currency is paired along with another to make a currency pair. Some currency pairs are traded more than others.
- Major pairs – the currency pairs in which the pair contains the U.S. dollar 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 with a consistently high volume. 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 the higher volume, the market also becomes more sluggish.
- 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.
The main currency pairs are usually ideal for trend following systems. Below are some of the most traded currency pairs in Canada:
Below are the top forex trading currency brokers in Canada
First 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 offer a convenient interface for the traders to invest in financial markets. There is 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 Regulation
It is important to find out if the broker is regulated before registering there. The Forex market regulator in Canada is the Investment Industry Regulatory Organization of Canada (IIROC). You should not register with any problem that is not under the regulation of this body. If you do, you will have yourself to blame at the end of the day. This is because a broker not under regulation may end up stealing your funds. If your fund goes missing, it will be near impossible to get it back. So, make sure you consider regulation before you choose a foreign exchange dealer here in Canada. You can check for confirmation on the website of the regulatory body to know if the broker is truly regulated or not.
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 on another broker. Virtually all brokers support 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 the 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.
|A popular online trading platform which can be used to automate your trading.|
|MT5 offers a few more order types compared to MT4, including Stop Limit Buy and Stop Limit Sell.|
|Prevides the real-time data and browser-based charts.|
|The best platform for technical and chart analysis.|
|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 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 avoid such a broker. A slow 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. The 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 is 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 in Canada 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 fund you have deposited to the account of the broker. The Canadian Investor Protection Fund (CIPF) is one of the many regulatory bodies for the Forex 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 forex trading 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 very 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 a 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 thoughts 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 of traders in Canada are even better than what obtains 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 the compensation made available by the CIPF is at a very special level entirely.
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 tradingcompanies to be restrictive, which has an impact on the Forex traders in that country.
Power of regulatory agencies
The regulatory authorities in the United States play the role of policymakers towards stopping their citizens from losing money. The United States, however, put in place certain regulatory changes for reducing 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 towards reducing 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 bring about some changes in their policies from time to time. This ensures a considerable reduction in the fraudulent financial practices among fx exchange brokers in the country.
A more lenient Canada
Canada has shown leniency towards receiving and sending money to and from international brokers and the 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 the 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 capitals 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 the regulatory license in Canada. The limited regulation of the Forex market in Canada exposes the traders to risks, especially if the broker fails.
Latest Top Forex Trading Canada News
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.
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 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 to which broker to trade with. Canadians are allowed to trade with brokers licensed with 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.
How risky is forex trading?
There are high risks inherent in forex trading. Canadian FX traders should rather distance themselves from the idea of hoping for big profits on the FX market without even much deeper knowledge.
Are trading sites in Canada safe?
Yes, if you do a bit of research. Our experts at ForexCanada ensures that all the forex websites we recommend are safe. Before you open an account at any website remember to check the broker’s regulation. Without regulation, the brokers can conduct their trades at their own discretion, so there is a very high risk for client funds.
What is a spread?
The spread is the difference between the bid and ask rates in a two-way currency rate. The spread is usually measured in points. For example, if the EUR/USD rate is 1.5000 to 1.5008, the spread is 8 pips or $ 0.0008.
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.
What is a lot?
A lot is the trading unit in forex trading and represents the contract size. 1 standard lot corresponds to 100,000 of the base currency whereas a micro lot has 1,000 units.
What is leverage?
Leverage trading is a technique that enables traders to “borrow” capital in order to trade a larger volume in a particular market with a relatively small deposit. It offers traders the opportunity to multiply potential profits as well as the losses.
What is a margin?
Margin is a deposit in good faith that a trader places as collateral for opening a trade. The margin simply ensures that your account has enough capital to trade.