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Is Forex trading legal in Canada?

Foreign currency trading and binary options lures with quick profits and incredible success stories from the US. But is Forex trading even legal in Canada? for example, as a private person, am I allowed to invest in a Foreign Exchange Market?

legality of forex in Canada

The legal situation: Canadian Forex and the law

Find a good broker and sign up with an account! That is the direct way to start trading. Here are some details about trading in Canada:

In Canada, forex trading is legal and one can conduct forex trading activities subject to certain regulations. These regulations differ from province to province.

regulatory authorities in Canada

Forex trading in Canada is reasonably regulated by the authorities and bodies. There is absence of a securities regulator at national level. Each province of Canada has a different regulatory system and framework. The features of the regulatory system of forex trading in Canada are as follows:

  1. British Columbia: Forex contracts are considered as securities by the British Columbia Securities Commission. There is no mandatory requirement for forex dealers regarding registration and provision of prospectus to conduct trading activities.
  2. Quebec: Forex trading in the province of Quebec is governed as the over-the-counter currency derivative. The regulatory connecting to this governance is Autorite des Marches Financiers (AMF). Upon fulfilment of certain conditions, forex dealers acquire an exemption.
  3. Ontario: Forex is an important constituent of the Ontario Securities Commission. As per current scenario, forex contracts are treated as securities as well as derivatives.
  4. Others: There is no specific regulatory authority with regard to forex trading in other provinces. They are dependent on the national bodies for regulating forex trading domain.
  5. Regulators at national level: The Canadian Securities Administrators have implemented a new set of rules for registration process of forex trading in Canada in the year 2009.

Other regulating systems in Canada

  1. Commodity Futures Trading Commission (CFTC): It regulates forex transactions with respect to retail clients.
  2. National Futures Association (NFA): The regulators tasks are delegated by CFTC to NFA. It evaluates forex trading activities of individuals, firms, and other entities.
  3. Investment Industry Regulatory Organization of Canada (IIROC): It regulates the investment industry in Canada.
  4. Canadian Investor Protection Fund (CIPF): Entities outside Canada do not receive protection under this organization. However, investments of all Canadians are protection by it.

The forex market has a daily trading volume in the billions and is the largest financial market in the whole world. Due the high trading volume in the Forex market, individual investors can hardly cause any price fluctuations. This has a positive effect on safety. In contrast to stocks or other securities transactions, foreign exchange is a real and limited commodity, namely the foreign currencies of other countries.

Trading in forex is therefore far less strictly controlled than the stock markets. The entry requirements for Forex trading are very low. You do not need any authorization to become active as a Forex trader. In theory , every legally competent person can participate in fx exchange trading.

Minimum age for Forex

In order to be recognized as a member of reputable Forex brokers, you must have reached a certain minimum age. All Canadian traders can start trading from the age of 18. For most foreign Forex brokers, the minimum age limit is also 18 years, with some in part even 21 years. The laws of the country in which the broker is based always apply here.

Which Canadian forex brokers are recommended

Forex Brokers Min. Deposit Platforms Rating Secure Link
MT4, MT4 Mobile
MT4 MultiTerminal
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Best New Canadian Broker
2 LegacyFX
Web, Desktop, Mobile app
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FREE Accurate Trading Signals
3 Fusion Markets
MT4, MT5
Mobile app, DupliTrade
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Best Broker for Beginners
3 BlackBull Markets
MT4, MT5
VPS, API, Mobile app
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True ECN Trading Broker
5 easyMarkets
Web platform, MT4
Mobile app
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Top Trading Apps


In Canada forex trading is viewed as trading in a security or a derivative. The regulators of forex trading are different for various provinces in Canada. Canada lacks in establishing a national forex trading regulatory system. Hence, if someone is interested in forex trading in more than one province, then he has to comply with the regulations of the respective provinces.

The traders in Canada are free to trade with any kind of brokerage house as per their needs and preferences. This is an important advantage of forex trading regulators in Canada.