Welcome to Forex Canada. We are here to help with forex trading Canada for beginners in 2022.
Our team is dedicated to connecting Canadians with the best forex brokers in Canada, including accounts, trading apps, and any tax considerations. FX traders can feel safe and confident choosing from our recommended list of Canadian brokers for beginners.
Are you interested in forex trading in Canada and looking for the best forex broker to get started with? Our forex broker comparison helps here. For nearly 15 years, our team of financial experts has evaluated the best forex providers in Canada to make your choice easier. Find out about the most important criteria when choosing a broker.
Compare Top Canadian Forex Brokers for October 2022
Here are our top-rated forex brokers in Canada, independently reviewed and recommended by Forex Canada’s team of experts:
What is Forex Trading Canada
Canadian foreign exchange traders aim to make money off of price changes in global currency markets. Online brokerage firms provide access to the financial markets through trading platform accounts where traders do market analysis and take positions.
FX traders in Canada should sign up with forex brokers with the Canadian dollar (CAD) as an account base currency. This reduces the cost of trading and currency conversion fees.
The Canadian dollar makes up 2% of the global currency reserves held by banks and is the sixth most traded currency in the world. The domestic economy, which is primarily supported by exports of mining, oil, and gas, has the most impact on the CAD. Given that the price of gold and crude oil directly affects the value of the CAD, forex traders should pay close attention to these prices.
Why Choose ForexCanada’s Top Canadian Forex Brokers
In contrast to many other comparison websites, on this site, we present the safest providers with the best conditions for traders. We will only recommend reputable forex brokers that offer the best trading experience. As top 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 for Canadians should have these characteristics:
- Regulated and licensed by an official financial regulator.
- Are legal for Canadian traders to use.
- Professional customer support.
- High security of customer funds.
- Allow you to deposit in Canadian dollars.
- User-friendly and flexible trading platform.
- Good trading conditions and low fees.
- Fast order execution.
- No requotes (cancellation of the order).
- Free demo account.
- Fast deposit and withdrawal of customer funds.
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:
- FXCC Broker – Best overall broker with tight spreads
- Fusion Markets – Lowest commissions Canadian broker
- BlackBull Markets – Top ECN trading broker in Canada
- easyMarkets Broker – Good platform with guaranteed stop losses
- Forex.com Broker – Best for technical analysis
- Fpmarkets – Best forex demo account
- Eightcap – Interactive platform with the very low fees
- LegacyFX – Offers great educational materials
- Avatrade – Best for market research analysis
- FXChoice – Best Canadian broker with low FX swap rates
Forex Trading Canada Broker Reviews
How We Rate The Best Forex Brokers
Due to the overwhelming number of Canadian forex brokers, traders have a huge number of trading options to choose from. We are honest and open when we compare and review the best forex trading sites. Here’s how we figure out if a Canadian forex broker has good services for online trading:
Quick Sign-Up Process
We test the sign-up process over and over again to make sure everything goes smooth. Every broker that we recommend has a user-friendly platform.
Our forex providers offer Canadian traders a selection of safe and secure banking options with fast deposit and withdrawal times.
Choose any banking method you like and start trading fx pairs online. The following methods in Canada ensure the smallest minimum deposits:
A good forex broker provides clients with many educational tools. These tools help traders to learn more about forex trading in Canada and make informed decisions. When you want to venture into online trading as a beginner, you need all the important educational material. The best brokers provide basic education about the foreign exchange market including economic calendars.
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.
At ForexCanada.ca, giving traders excellent customer support experience is of the utmost importance. 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.
Forex brokers Accepting Canadian Clients
Is Trading Forex Legal in Canada?
Yes, forex trading in Canada is 100% legal when trading with a licensed broker. We know Canadian laws and regulations can seem hard to understand. The Investment Industry Regulatory Organization of Canada (IIROC) is the national regulator of forex trading in Canada. However, there is also a local regulator in each provinces and territories.
Below are list of Forex regulatory bodies in Canada:
- Investment Industry Regulatory Organization of Canada
- Alberta Securities Commission
- Canadian Securities Administrators
- British Columbia Securities Commission
- Financial Services Commission Ontario
- Mutual Fund Dealers Association
- Financial Transactions and Reports Analysis Centre of Canada
- Ontario Securities Commission
- Canada Revenue Agency
Most Popular Forex Trading Accounts in Canada
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.
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 Forex Canada we therefore introduce you to the best and most popular brokers where you can get professional tools for foreign exchange trading.
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:
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.
Regulators make sure that brokers have a good trading environment and anti-money laundering processes, all the while operating strict auditing oversight and ensuring client fund protection. Brokers that are under regulation by one major regulator are more trustworthy.
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.
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.
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.
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.
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:
- Visit the broker’s website and fill out the online application form.
- You will receive an 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.
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.
The Most Traded Currency Pairs in Canada
There 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.
Various Types of Currency Pairs:
- 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.
- Minor pairs – 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
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 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 trading 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.
|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.
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. 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 USA.
Power of Regulatory Agencies
The 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.
International Brokers for Canadian Traders
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.
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. 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 Investment Industry Regulatory Organization of Canada (IIROC).
What is forex trading and how does it work?
Forex (FX) stands for Foreign Exchange. When trading 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?
Yes, you can trade on your mobile. 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.