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The Best Forex Brokers in Canada

forex broker canadaRegulation may be a critical factor when choosing the best forex broker. Confirm your broker is under the regulation of either the FCA, CySEC, or ASIC. FSCA regulation is additionally important as this suggests any complaints you’ve got are going to be resolved through the Canada system.

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.

Think about whether you would like a CA Dollar Account instead of a USD Account. Not many brokers offer CAD accounts, but they are doing prevent money in conversion fees and guarantee that your money is with an area bank.

Our Best Forex Brokers in Canada

Forex Brokers Min. Deposit Platforms Rating Secure Link
1 BlackBull Markets
Risk InformationYour capital is at risk
$200
MT4, MT5
VPS, API
5/5 Visit Site
Regulators: FSPR, FMA, FSA
2 easyMarkets
Risk InformationYour capital is at risk
$100
Web platform, MT4
Mobile app
4.9/5 Visit Site
Regulators: CySEC, ASIC, FSA-Seychelles
3 fpmarkets
Risk InformationYour capital is at risk
$100
MT4, MT5
WebTrader, Iress, VPS
4.8/5 Visit Site
Regulators: CySEC, ASIC
4 Avatrade
Risk InformationYour capital is at risk
$100
MT4, MT5, Web, Mobile
AvaTrade Go, MQL5
4.8/5 Visit Site
Regulators: ASIC, FSCA, B.V.I FSC, FSA
5 FXChoice
Risk InformationYour capital is at risk
$100
MT4, MT5
Mobile Trading
4.7/5 Visit Site
Regulator: IFSC
6 Fortrade
Risk InformationYour capital is at risk
$100
MT4, OANDA API
Web, mobile & desktop platform
4.7/5 Visit Site
Regulators: FCA, CFTC, ASIC
7 Questrade Canada
Risk InformationYour capital is at risk
$1000
QuestraderPro, QuestraderWeb
QuestraderElite QuestraderFX, QuestraderFXPro
4.6/5 Visit Site
Regulator: IIROC, CIPF
8 Interactive Brokers
Risk InformationYour capital is at risk
$0
Client Portal, IBKR Mobile
IBot, Trader Workstation (TWS)
4.5/5 Visit Site
Regulators: SEC, FINRA, NYSE, FCA
9 Ifc markets
Risk InformationYour capital is at risk
$1
MT4, MT5
Web, desktop & mobile trading stations
4.4/5 Visit Site
Regulators: CySEC, FSC, BVI

How to Choose the best forex Broker?

Finding a forex broker that supports that offers best forex trading platforms may a daunting task in Canada. MetaTrader 4 is be a safe choice as it’s the industry standard and there’s a mess of online tutorials.

Choosing the best forex brokers

Choose what forex broker type you would like. Some brokers offer commission-free trading and their name is dealing desk brokers or market maker brokers. Some brokers charge commission but have tighter spreads. Their name is non-dealing desk brokers or direct market access brokers.

Always check for extra Broker Fees that you will pay. We always highlight these in our reviews, but common ones are deposit and withdrawal fees and currency conversion fees.

Find a broker with the Trading Conditions which will support your trading strategy. Believe what proportion Leverage you would like to possess available; keeping it low (100:1 or less) may be a good idea if you’re still learning the way to trade.

The best forex brokers in Canada should be under regulation. It should offer account options, platform choice, trading conditions, and beginner friendliness.

Regulation

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.

forex broker regulations

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 among the main regulators or the FSCA. Brokers that are under regulation by more than one regulator are more reliable.

Be wary of brokers who are only regulated by small island states like St Vincent, Bermuda, and therefore the Cayman Islands. These regulatory agencies aren’t also considered the main international regulators as they provide more leniency to brokers and limited coverage for traders.

Also, take care of brokers who have just moved to Canada. With the recent tightening of European and Australian regulations, several questionable brokers have moved into Canada recruiting for traders.

Account Types

Each brokerage will have various account types, and there’s a trend within the industry to possess fewer account types available than in years past. The first distinction between account types is between the Live accounts, Demo accounts, and Swap-free accounts. Managed accounts are available, but rare.

Live Accounts

These accounts use real money, and everything that you simply neutralize 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, customer service, research area, and trading conditions before committing real money. Most demo accounts are time-limited but are easy to reactivate. These are the simplest demo accounts.

Managed Accounts

Select brokers will operate a managed account for you, but it’s rare. There are independent money managers who can manage your account while they’re trading for themselves. It’s vital that you simply read our article on managed accounts and understand the minimum deposit requirements and extra risks involved when trading CFDs.

Further classification of accounts

There are different types of accounts in the Forex market aside from the ones mentioned above. We are going to focus on these other types of accounts in this section. The types of accounts in this section depend on the size of the accounts. Continue reading to find out more.

Swap-Free (Islamic) 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. In shariah, interest on loans is prohibited, so swap-free accounts don’t earn overnight interest in open positions.

In this type of account, the trader will not pay swap if his trade extends to the next day. This is because payment of swap is the same thing as payment of interest. Interest payment does not agree with the tenets of Islam.

This swap-free account is available to Muslims that want to observe the dictates of their religion while trading Forex. Instead of the variable interest charge, the trader using the Islamic account will pay a fixed charge. This fee will only come up if the trade opens overnight. There are also times that the swap-free account holder will not pay for overnight trade at all.

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.

The spread can be as low as zero. This means the account holder may end up paying no spread at all. Additionally, a VIP account holder can enjoy dedicated account management. This means that such a trader can enjoy a faster response to all his queries than what other categories of traders enjoy.

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. This means that 1 standard lot size equates to $10. If you are trading USD/CAD for example and the trade moves by 100 pips, that translates to $1000. This is the case if you are using 1 standard lot. Just multiply the number of pips by $10 to get the amount in USD.

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. In a mini account, 1 pip is equal to $1. If the price of a currency pair moves by 50 pips in a mini account, this translates to $50.

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. It also translates to one-hundredth of the side of a standard lot. This means that 1 pip is the same as $0.10 when you use a micro lot. If the price of the asset moves by say 100 pips in a micro account, it will translate to just $10 in currency value.

Cent account

In this type of account, the balance is in cents and not in US dollars. Cent accounts and any other trading account are handled the same way. The only difference is the nominal amount. If you are a beginner in Forex trading, this type of account will surely work for you. This is because the money you have to risk is not much.

Some even think that a cent account is a midpoint between a demo account and a dollar account. The value of the lot in a cent account is 0.0001 of a standard lot. One other benefit of a cent account is that there is no minimum or maximum deposit. You can deposit virtually any amount. The requirements for opening a cent account are usually not as strict as what obtains in several other account types.

While a cent account may have several benefits, it also has some limitations. For example, the spread can be high and this is to compensate the broker. Some brokers also limit the position size in a cent account. The intention is to minim use usage.

The minimum deposit you need to open each of the account types differ. You need to check the minimum deposit for each account type on the broker before you make a deposit. Some brokers will automatically upgrade your account from micro to mini or standard if your account balance reaches what obtains for that new account type. Bear in mind that not all brokers offer these types of accounts. So, you should research well to know what types of accounts your preferred broker offers.

Foreign currency (USD, EUR, GBP) or CAD accounts?

Foreign currencyGenerally, having a CAD account may be a good thing; you’ll avoid any broker conversion fees and therefore the currency conversions that banks and MasterCard companies charge when making a wire deposit or withdrawal.

Brokers with CAD accounts usually use Canada bank accounts, where withdrawals and deposits are much faster and sometimes happen instantly. With a USD account at a world broker, this may not always be the case.

Platform Choice

When it involves choosing a broker to trade with, choosing the proper platform can make a considerable difference to a trading career. That said, your broker should support a platform you’re comfortable using.

While a minority of brokers have proprietary platforms, others use mainstream trading platforms like MetaTrader and cTrader.

MetaTrader 4 and 5 are the foremost common CFD trading platforms; however, MetaTrader’s older interface and sophisticated setup make it less accessible to beginners. cTrader, on the opposite hand, features a more modern interface and is simpler for beginner traders to line up.

If you’re an experienced trader with a specific software choice in mind, or if you’re a beginner seeking to find out more about platform options, we’ve put together an inventory of the simplest Forex trading platforms for traders and therefore the brokers that support them.

All brokers have mobile trading apps, and a few will have developed proprietary apps, but a huge majority believe the MetaTrader software for IOS and Android.

Types of Forex Brokers

Forex brokers fall under two main categories – Direct Market Access (DMA) brokers and Market Maker brokers.

Each broker category is often split into two subcategories. DMA brokers are divided into subcategories called ECN and ECN/STP, and market makers can have a dealing desk (DD) where the broker can alter trades before they’re executed.

Pure ECN Forex Brokers

In the DMA category, a Pure ECN (or transmission Network) broker, will never interfere together with your trade, and therefore the only source of liquidity comes from other members of the network. ECN execution will mean that if there’s no liquidity within the market, your trade will have slippage, and you’ll get a requote.