Eightcap, on the other hand, is not regulated by the Canadian regulator, instead, by an offshore regulator, SCB in the Bahamas. Fusion Markets has some of the tightest spreads in the market based on our testing. With an average spread of 0.12 for EURUSD, you will pay $1.20 on the spread each way for a CAD $10 trade. We recommend trading with the Fusion Markets Zero Account rather than the Standard Account, as this will save you on costs.
- It is strongly advised that traders start off with a low leverage, and a higher initial deposit.
- Before you start forex trading in Canada, check the broker is licensed with the IIROC.
- While the number of delisting that occurred in 2023 was noteworthy, as the Canadian ETF landscape continues to grow, ETF closure numbers of this magnitude may become normalized.
- Client accounts, that are held at CIRO-regulated investment intermediaries, are also safeguarded by the Canadian Investor Protection Fund (CIPF) within particular limits.
- However, limited leverage is put in place to minimize the amplified risk of losses.
Alvexo also has many calculators which can be used by the traders to come up with different risk analysis and trading strategies. The traders can also access free forex scalping signals to produce trading ideas if they don’t have enough time to perform a complete analysis. With FOREX.com, Canadian forex traders have access to a massive 82 currency pairs and can take advantage of competitive spreads, starting from 1.0 pips on USD-pegged majors such as EUR/USD, AUD/USD and USD/JPY. Minimum capital requirements vary between Canadian forex brokers and account types.
Disclaimer on Regulations
Overall, FP Markets features competitive spreads and fast execution speeds to keep your MT4 trading costs low. FP Markets also offers ‘Traders toolbox’, with additional trading tools to enhance your MetaTrader platform experience. Different rules apply to Forex brokers in Canada compared to Forex brokers in the US.
OANDA:
With a firmer control from IIROC, forex brokers in Canada haven’t been able to offer the leverage and extensive products that other customers around the globe receive. CMC Markets began its operation in 1989 and has grown into a reputable and well-regarded broker across the globe. As there are multiple regulatory agencies in Canada, and no particular requirement for forex brokers to set up in Canada, traders do not have a huge selection of forex brokers in Canada. New traders should enter the forex market aware of the risks and should not invest more than they can afford to lose. You will need to submit basic personal information to satisfy several requirements, including to verify your identity, trading objectives, risk appetite, and source of capital.
The brokerage offer negative balance protection so you cannot lose more than your account balance. Leverage should be utilised only when traders understand the risks involved. Other costs include an inactivity fee equal to 10 units of the base currency and swap fees on positions left overnight. The EUR/USD spread starts at 2.9 pips for Classic account holders and drops as low as 0.1 pips with the Elite option. Trade leveraged CFDs on popular asset classes, including stocks, indices and commodities. You can go long or short on key financial assets with leverage in line with regulatory requirements.
The foreign exchange market, or forex, is a decentralized global marketplace where currencies are traded. With a daily trading volume of over $5 trillion, forex is the largest financial market in the world. As a Canadian investor, it is important to choose a reliable and regulated forex broker that offers competitive spreads, reliable trading platforms, and excellent customer service. Interactive Brokers is a well-established brokerage firm that caters to advanced traders. With over 40 years of experience in the industry, it offers a wide range of trading instruments, including forex, stocks, options, futures, and more. Interactive Brokers provides direct access to interbank forex quotes, ensuring tight spreads and competitive pricing.
It also has an “advance trading section “which has a range of material to help the users to take the trading to the advanced level. The material has been published engagingly and entertainingly to make it more attractive for the clients. Their live support representatives are always ready to help you with your trading issues.
Friedberg Direct has licensed the AvaTrade Technology in order to offer AvaTrade platforms to Canadian residents. Commodities including gold, silver, platinum, crude oil, and other energy commodities are offered for trading as CFDs. One of the last steps before trading and once you have found a broker that ticks all the boxes for you, is to verify their regulation.
Derivative products like CFDs, while they are not legal with the neighbors in the USA, are legal to trade in Canada. Cryptocurrency trading is also legal in Canada and very much enjoyed by Canadian traders. With this, there is no restriction on leverage offered to Canadian citizens which allows traders to take advantage of higher offers. That said, they should be used with caution as the higher the leverage the higher the risk. It is strongly advised that traders start off with a low leverage, and a higher initial deposit. Although many of the regulations do work to protect US citizens some are perceived to be too far against the investors freedom to choose.
Best for Competitive Spreads: IFC Markets
MT4 is already one of the most reliable and popular trading platforms, so having a fast execution speed gives you extra trading power. When we measured the execution speeds of 20 top brokers using MT4, FP Markets had one of the fastest market execution speeds. The broker averaged a 96ms execution speed for market orders, making FP Markets the 4th fastest overall and the fastest non-CIRO-regulated broker on this list.
Forex Risk Disclaimer
As such, Friedberg Direct, through AvaTrade, offers competitive fixed spreads from 0.6 pips, which is better than the industry average of 1 pip for a market maker broker. Overall, Interactive Brokers is a broker we recommend for more experienced traders, with low online trading costs for active traders, an unparalleled library of products and advanced trading platforms. FP Markets offers both a commission-based (Standard) canadian forex review and spread-based (RAW) account. When we tested spreads on both accounts, FP Markets was fairly competitive against the industry average. FP Markets’ RAW account had some of the tightest spreads we measured, averaging 0.22 pips for the top 5 most traded currency pairs. For the Standard account, the broker had an average of 1.30 pips vs the industry average of 1.52 pips for the top 5 most traded currency pairs.
Canada is unique as they have many different organizations (15 to be exact) that supervise the Forex market. The two main organizations are IIROC (the main regulator for debt and equity markets in Canada) and the CSA (Canadian Securities Administrators). To achieve fixed spreads, this broker uses a market maker mode meaning they have an in-house dealing desk. While the broker is your counter-party, the fixed spread model means spreads are transparent so you don’t need to be concerned with price manipulation from the broker.
OANDA gives you access to the usual MetaTrader 4 features including over 50 indicators built into the platform, one-click trading (useful for scalpers) and EAs (expert advisors) to automate your trades. To book a trade, you must first set up recipients, including their bank account information. Then, you get a quote for the exchange you’d like to make, and click a “Finalise” button. If you’ve set up direct debit, the money will be removed from your account by the next business day. Otherwise, you send CanadianForex the money using your bank’s bill payment system. Once CanadianForex receives the money, they will send an Electronic Funds Transfer (EFT) or wire payment, depending on the destination country, to the recipient.
What are the best forex brokers in Canada?
This broker list is sorted by the firm’s ForexBrokers.com
Overall ranking. Above all, our experts assess whether a broker is trustworthy, taking into account their regulatory credentials, account safeguards, and reputation in the industry. The higher account tiers require larger minimum deposits, in excess of $20,000. There is also an academy offering tutorials, webinars, and articles to help users identify and trade the price difference.
Currency Pairs
OANDA also offers a range of technical analysis tools, an expansive education suite and 24/5 trading support. These reasons add up to why we rated OANDA as the best Canadian forex broker overall. In conclusion, choosing a reliable forex broker is crucial for advanced traders looking to maximize their trading potential. Ultimately, the best choice depends on individual preferences, trading strategies, and specific needs. It is recommended to thoroughly research and compare the offerings of different brokers before making a decision. In conclusion, when choosing a forex broker as a Canadian investor, it is important to consider factors such as regulation, trading platforms, spreads, and customer support.