To help choose a broker we compared the best forex brokers that accept Canadian clients in 2023 and CIRO forex brokers regulated in Canada. Below shows our monthly findings.
Our forex comparisons and broker reviews are reader supported and we may receive payment when you click on a link to a partner site.
Top 10 Forex Brokers In Canada
The best Canadian forex trading platforms in September 2023 are.
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
8.83 |
FCA, CIRO, ASIC FSC-BVI, NFA, CFTC MAS, JFSA, KNF |
1.4 | - | - | - | - |
|
|
|
120ms | $0 | 69+ | - | 50:1 | - |
|
||
|
8.33 |
FMA, VFSC ASIC |
1.0 | 1.32 | 1.11 | 0.10 | 0.42 | 0.21 | $3.50 |
|
|
|
94ms | $100 | 60+ | 12+ | 30:1 | 200:1 |
|
|
7.0 | CIRO, FCA, NFA, CFTC, MAS, JFSA, CIMA | 1.30 | - | - | - | $6.00 |
|
|
|
30 ms (May 2023) | $100 | 80+ | - | 33:1 | 33:1 |
|
||
|
8.33 |
CIRO, FSCA ADGM, CBI |
0.90 | - | - | - | - |
|
|
|
160ms | $100 | 37+ | - | 33:1 | 33:1 |
|
||
|
8.17 |
ASIC, FCA MAS, CIRO |
- | - | - | - | 0.08%-0.2% |
|
|
|
120ms | $0 | 100+ | - | 30:1 |
|
|||
|
7.17 |
ASIC, FCA MAS, CIRO |
1.12 | 1.30 | 1.64 | 0.5 | 0.9 | 0.6 | $2.50 |
|
|
|
138ms | $0 | 339+ | - | 30:1 | 500:1 |
|
|
8.17 | ASIC, VFSA | 0.93 | 1.08 | 0.92 | 0.13 | 0.21 | 0.12 | $2.25 |
|
|
|
79ms | $0 | 90+ | 10+ | 500:1 | 500:1 |
|
|
9.00 |
ASIC, SCB FCA,CySEC |
1.0 | 1.0 | 1.2 | 0.06 | 0.73 | 0.27 | $3.50 |
|
|
|
143ms |
$250 (Raw) $500 (Standard) |
40+ | 250+ | 500:1 | 500:1 |
|
To help you choose a broker, we compared the best forex brokers for Canada in 2023. These brokers account for a range of trading styles, and offer different platforms like MetaTrader and TradingView and a range of trading instruments. All brokers on this list are CIRO regulated unless noted.
OANDA is our Highest Rated Broker for Canada
We liked OANDA because you can choose from 3 excellent trading platforms, trade a solid range of trading products including 69 Forex pairs all with competitive spreads and no commissions. OANDA also include a range of technical analysis tools, an expansive education suite and 24/5 trading support. These reasons are why we rated OANDA as the best Canadian forex broker.
Our rating system uses a strict methodology at CompareForexBrokers, and we’ve ranked OANDA in the top ten brokers worldwide and number one for Canada. Overall we gave OANDA a score of 71/100.
Key Strengths
OANDA Has 3 Excellent Trading Platforms
When you open an account with OANDA you can choose between three trading platforms. We liked that each platform is sufficiently from each other making them suitable for different types of traders. This is why we gave OANDA a score of 7/10 for their trading platforms which is a good score.
We tested each of the trading platforms and here are our thoughts.
OANDA Trade is the OANDA’s flagship platform. If you find the MetaTrader 4 user interface (UI) a bit dated (we, along with many others do), then you will appreciate the more modern UI OANDA Trade has to offer. This platform is available as a Web Trader and for iOS and Android mobiles.
When we tested the platform we found the UI was well designed to present the extensive charts and 100+ trading indicators without appearing cluttered. This is a good thing because OANDA Trade makes use of many of the charts from TradingView and AutoChartist making it a good choice for traders who like analytics.
One last feature we thought was worth a mentioned is that you can control the unit size to a single until (0.0001 lot), instead of being fixed to the lowest micro-lot.
We also tested TradingView with OANDA. The team at CompareForexBrokers are quite familiar with TradingView having used it with several other brokers such as Pepperstone, and BlackBull Markets but OANDA is the only broker to offer it to Canadian traders.
TradingView is a charting package with 15 chart types, over 100 prebuilt technical indicators and 90+ smart drawing tools. These features in our opinion make TradingView a compelling choice if you like trading analytics to find opportunities in the market.
The last trading platform available with is another trading platform we are well acquainted with – MetaTrader 4. While many brokers offer this platform include OANDA’s bespoke MT4 plugins. We found the trade orders feature useful to identify when the price crosses support and resistance levels as it helped us find trading opportunities.
You should also choose MT4 if you prefer automated trading as this is available by using Expert Advisers.
OANDA offers a Standard Account with no commissions
The Standard Account you get at OANDA is spread based, so all of your trading costs are priced into one low trading cost. This is a popular way to “pay” to execute your trades, and it also means you do not have to pay any additional commissions. So you can focus on the trading results and not the costs.
Spread Rebates with the Elite Trader Program
By joining the Elite Trader Program you can earn spread rebates from your trading costs. Rebates rane from $5 to $17 depending on the volume you trade. If you are a high volume trading, this feature does give OANDA a point of difference over their competitors.
Our Verdict on OANDA
In Canada, very few brokers can match up to the industry experience OANDA has gained over the last 25 years. Pioneering the technology to make trading accessible to retail traders has allowed OANDA to provide a cost-effect trading account with great customer service. The range of trading platforms will suit most traders while offering advanced tools, such as the Open Order Indicator, making OANDA our recommended best broker overall.
TMGM has leverage of 500:1
Canadian forex traders should select TMGM based on their:
View TMGM ReviewVisit TMGM Review
Spreads And Commissions Charged By TMGM
TMGM is a non-dealing desk forex broker. This means they can deliver ECN-style pricing with market-based spreads. They also have partnered with some of the largest ‘prime of prime’ liquidity providers connecting investment banks and non-bank market makers and aggregating the quotes they provide to bring the best spreads.
There are three accounts available for Canadian traders including the:
All accounts require a minimum $100 deposit with no deposit or withdrawal fees.
The IRESS account is for traders using the IRESS Viewpoint. This platform is only suitable for traders wishing to trade shares. Using this account/platform gives you access to TMGM’s full range of 12,000 shares (many of which are not available with the MetaTrader platform) across US, AU, UK, HK, CN and SG exchanges.
TMGM has excellent trading platforms
TMGM allows you to trade using the popular MetaTrader 4 (MT4) via desktop, webtrader, Android and iOS phone and tablet or IRESS ViewPoint via web browsers. In the near future, MetaTrader 5 will also be an option.
MetaTrader 4 (MT4)
MT4 is the most popular global trading platform, particularly for forex and is designed for beginners and experienced traders alike. While the popularity of MT4 is due to a number of reasons, its intuitive interface, extensive range of trading tools and thousand of expert advisors and custom indicators help explain this.
Key features of MetaTrader 4 include:
Note: Share trading with MT4 is limited since MT4 is designed for decentralised trading.
IRESS ViewPoint
To get access to TMGM’s full range of over 12,000 shares 24 hours a day, you will need to trade with IRESS ViewPoint.
The IRESS suite offers professional-grade trading. As IRESS has Direct Market Access (DMA) trading execution you get Depth of Market (DoM) pricing for the best quotes.
IRESS also comes with
Trading Central
As a bonus, all clients with TMGM will have access to Trading Central. This product is a one-stop shop to help you make better investment decisions.
Features of Trading Central include:
Over 12,000 Markets Available to Trade
TMGM offers a variety of markets including Forex and CFD products including, Indices, Shares, Precious Metals and Energies.
Forex
With TMGM, Canadian traders can access popular currency pairs, including 46 major, minor, exotic, and cross-pairs. Spreads start at 0 pips, and you’ll have access to 1:500 leverage.
Shares
TMGM boasts over 12,000 stocks to trade. Use MetaTrader 4 or IRESS for stock CFD trading; however, MetaTrader 4 is limited to the top 30 US stocks. IRESS grants access to TMGM’s full range of shares across US, Australia, UK, Hong Kong, Chinese, and Singapore stock exchanges 24/7.
Trading CFD shares with TMGM offers exposure to stock price movements for just $40 (CAD) monthly and a small commission of $6 or $7 per 100k traded for standard, premium, or gold. The minimum deposit for a Standard account is $5,000 USD.
TMGM has world-class customer service and education
TMGM’s customer support is reachable via live chat, phone, or email. The live chat ensures quick, relevant responses from knowledgeable representatives, not chatbots. TMGM’s chat supports over 10 languages, including French.
TMGM Academy offers forex trading education through Beginner, Intermediate, and Advanced stages.
Final Verdict On TMGM
TMGM was rated the best forex broker in Canada simply based on their low fees and forex trading platform offering. They offer a wide range of instruments to trade including crypto with adequate customer support and training resources for beginners to expert traders. Forex traders should select MT4 and the edge account while CFD traders should also select the edge account but with MT5.
FOREX.com has over 80 currency pairs for trading
GAIN Capital Group DBA FOREX.com first launched in the US in 2001, offering trade execution services in FX for retail investors. Over the following decade, FOREX.com launched all around the world, which includes Canada in 2012. The parent company at the time, GAIN Capital Holdings Inc., owns global CFD and FX brands, such as FOREX.com and CityIndex, which are regulated in several jurisdictions across the globe. Acquired in 2020, FOREX.com is now a wholly-owned subsidiary of StoneX Group Inc., a publicly listed company on the NASDAQ (NASDAQ: SNEX).
FOREX.com FX offering
With Forex.com, Canadian forex traders are granted access to 80+ major, minor and exotic currency pairs and can take advantage of competitive spreads, starting from 0.8 pips on majors such as EUR/USD, USD/JPY and AUD/USD. The minimum and typical spreads offered on other popular pairs are presented as follows:
Traders can gain access to 2500+ CFD instruments on popular equities, commodities, and indices. View the best CFD trading platform Canada page to compare the best CFD brokers including forex.com.
We have a more in-depth ECN forex broker comparison for Canadian traders.
Our tests show Fusion Markets have the lowest spreads
Canadian traders looking for the lowest cost broker should choose Fusion Markets. The broker achieves low costs through industry-low commission costs, tight spreads, and low ancillary fees.
Fusion Markets Has Low Commission
Fusion Markets offers the following low commission for its ‘Zero’ Trading account. If you are a high-volume trader, then commission costs can add up as you will pay to open and close your position for each lot you buy and sell.
Fusion Markets Has Tight Spreads
Spreads represent your largest costs when trading. With this in mind, it makes sense to choose a broker that offers ECN pricing tight spreads.
When trading each pip you trade will cost you CAD$10 so with an average spread of 01.2 for EURUSD. You will pay $1.20 on the spread each way. We recommend trading with the Fusion Markets Zero Account rather than Standard Account, as this will save you on costs. While the Standard account has no commission costs, 0.8 pip is added to the spread. Using EURUSD as an example, if the round trip cost is $2.40 spread cost is ($1.20 each way) + commission of $6.00 = $8.40. Standard account average spread is 0.12 + 0.8 = 0.92 so you will pay $9.20 to in trading costs.
Fusion Markets Does Not Have Inactivity Or Funding Fees
Fusion Markets do not have inactivity costs. This means you don’t have any obligation to meet any minimum trading requirements each month. A lot of retail investor accounts, especially occasional traders, get caught out with such costs.
Besides no inactivity costs, Fusion Markets do not charge any Funding fees for deposits or withdrawals. The one exception may be when funding from an international bank to a Canadian bank.
Fusion Markets Saves You On Costs
Overall, Fusion Markets is 36% cheaper than other regulated forex brokers based on their low spread and lowest commission rates.
Use the forex brokerage calculator below to compare Fusion Markets to other global forex brokers (some don’t accept Canadian forex traders) to see how much you will save on a trade. We base this on published average spreads, commissions, and live forex pair crosses.
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Fusion Markets Offers The High Leverage
Fusion Markets accepts Canadian traders but is not CIRO regulated. The broker’s offshore, Vanuatu (VFSC) regulated branch offers leverage of 500:1 on currency trading, while the Australian (ASIC) branch is limited to 30:1. Leverage involves a high level of risk, so it is important to select the right level that is right for you. There is no minimum deposit requirement and no minimum account size.
Fusion Markets Offers CAD as Base Currency
When signing up with Fusion Markets, if you are outside Ontario, you can choose to sign up with either Fusion Markets or Fusion Markets. Ontario residents can only choose Fusion Markets. Both entities offer exactly the same product, but choosing Fusion Markets means you can choose CAD as your account base currency. Having CAD as your account base currency will save you on costs, as you can prevent currency conversion charges when trading.
The reason Ontario residents cannot choose Fusion Markets is that Ontario is not a signatory of the Canadian Securities Administrators (CSA) which is the umbrella financial regulator across all provinces and territories across Canada except Ontario.
Fusion Markets Offer The MetaTrader 4 Forex Trading Platform
Fusion Markets offers MetaTrader 4 (MT4). This is the most popular forex trading platform worldwide, allowing desktop, Webtrader for browsers and mobile trading experiences. It is also the most used platform by forex traders adopting automation (Expert Advisors) and also offer offers MetaTrader Signals for social trading (copy trading).
Final Points On Fusion Markets
We recommend Fusion Markets for Canadian forex traders based on their low fees, forex trading platform, and high leverage. The broker is regulated by the Vanuatu Financial Services Commission (No. 40256) and their parent company is ASIC regulated. The broker segregates all client monies with Westpac (in Australia) for peace of mind.
CMC Markets has good education for beginners
CMC Markets is the best Canadian forex broker for beginner traders that want access to great educational resources. CMC Markets provides a full range of trading services from forex trading and CFD trading to unique educational resources tailored to the needs of retail traders.
CIRO regulated and CIPF member, CMC Markets serves Canadian traders since 2005 and traders worldwide since 1989.
CMC Markets Customer Services
CMC Markets offers Canadian traders outstanding educational resources and an excellent trading experience thanks to its learning center. CMC Markets’ education offerings include:
The only drawback is a lack of quality market research material and fundamental analysis of current market events.
eBooks
CMC Markets offer a list of 8 different well-structured eBooks that are available for anyone to download in PDF format. The trading eBooks are designed to help novice traders build their trading skills, as well as guides on how to trade using trendlines and how to recognize patterns or essential guides to day trading.
Trading Guides
CMC Markets offers easy-to-use trading guides that cover topics ranging from basic concepts like what is forex, support and resistance trading, how to trade on news and so much more. Some lessons will be provided in video format which makes the learning experience more powerful.
Webinars
The engaging webinars offered by CMC Markets are hosted by an experienced team of market analysts led by Michael Hewson. Anyone can register and join the webinars for free. The webinars cover a wide range of topics like trading strategies, trading tips and tricks, news breakdowns and live coverage of the most important economic data.
CMC Markets Overview
CMC Markets offers access to over 9,500 financial markets and +330 FX pairs with spreads that start from 0.7 pips through a proprietary trading platform – Next Generation.
Forex traders can access +331 currency pairs with CMC Markets – one of the most diverse lists of FX offerings by a Canadian forex broker and other 9,500 CFDs across commodities, indices, shares, treasuries, metals and energies.
At the same time, CMC Markets offers access to the well-known MetaTrader 4 trading platform. There is a desktop, mobile and web-based version of these platforms that lets traders access their trading accounts from multiple devices.
Eightcap has 86 crypto pairs to trade with
Established in Australia, Eightcap is an online Forex and CFD broker and is unique in offering the best range of cryptocurrency markets for Canadian clients. This is because a lot of brokers regulated by CIRO don’t offer crypto products. Eightcap, on the other hand, is not regulated by the Canadian regulator, instead, by an offshore regulator, SCB in the Bahamas.
The broker also offers competitive FX spreads due to working with top-tier liquidity providers. It does this by having its servers located in the Equinix data centers, where the institutions themselves are hosted. In addition to deep liquidity, you will also obtain low latency in trade execution which means less chance of slippage and fast execution speeds.
Competitive Spreads with Raw Account
Out of Eightcap’s two account types, you will obtain the most competitive pricing with their Raw account.
The Raw account has the lowest Forex spreads, starting at 0 pips for EUR/USD, with commissions of CAD $7 per round trip. Alternatively, you can open a Standard account, which is commission-free with spreads starting from 1 pip.
Both accounts offer ECN pricing and execution, the main consideration is trading costs. We recommend Raw for more experienced traders (scalpers, hedgers and day traders) while the Standard account is for beginners just starting out.
You can also fund your account using Tether (USDT) or BitCoin (BTC) cryptocurrency, giving Eightcap a point of difference as the top crypto broker.
Eightcap’s spreads are competitive when looking at ECN-type accounts as highlighted below. This module captures the average spreads that brokers publish on their websites, which we update monthly.
Wide Range of Stocks and Cryptos
Eightcap offers a smaller range of 40 Forex pairs, but where the Australian broker stands out is in its crypto and stock offering, with over 250 Cryptocurrencies and 400 stocks available, to trade.
For an added benefit, the broker’s Forex and commodities products are available with leverage of up to 500:1. Given there is more risk in taking on higher leverage, Eightcap uses a tiered system that restricts higher leverage for larger accounts, ensuring an element of protection should movements not go in your favour.
Top Crypto Broker
Eightcap is our top crypto broker, offering 250 cryptocurrencies to trade, including 20 cross-currency products against USD, AUD, CAD, EUR, GBP and MXN, easily the biggest range for Canadian traders. You can even cross-pair these 20 cryptos against Bitcoin, as seen below.
To trade Eightcap’s full range of cryptos, however, you need to use MetaTrader 5 if you want (E.g. AUD and CAD).
Diverse Range of Trading Platforms
As a MetaTrader specialist, Eightcap offers the two most popular Forex trading platforms, MT4 and MT5.
MT4 is still the most widely used platform for Forex trading with a wide range of MetaTrader 4 brokers in Canada. MT5 is suited for CFD trading, as it is designed for trading on centralized and decentralized exchanges. MT5 also has more flexibility and advanced charting tools, as well as more markets available to trade, particularly cryptos and share CFDs.
Another useful platform is TradingView, an advanced charting program that has over 100 technical and 50 analytical indicators to assist your technical analysis while trading.
The three main trading platforms (MT4, MT5 and TradingView) are available on desktop and mobile (for both iOS and Android devices) while only MT5 and TradingView are also available as a WebTrader. You can’t use robots or automation with TradingView either.
Cryptocrusher and The Amazing Trader are two recent additions to Eightcap’s suite of platforms.
As the name indicates, Cryptocrusher is a crypto enhancement tool that is equipped with order customisation tools, market trend analysis, exclusive indicators and a 24-hour chat room to discuss your trades.
On the other hand, the Amazing Trader is a charting algorithmic platform for FX, indices, cryptos and metals, adding to the diversity of platforms Eightcap offers. In addition to built-in risk management, you can also try the platform for free using their 28-day success program. You must hold an account balance of $500 or more, though.
Interactive Brokers Has RAW Trading Accounts
Established in 1978 by its Chairman Thomas Peterffy, Interactive Brokers Group has an office in Montreal, Quebec and functions as an “all-in-one” brokerage providing:
IB caters to both professional and institutional traders for a range of asset classes and derivatives such as stocks, bonds, foreign exchange, metals, commodity futures, options, ETFs and Mutual Funds internationally.
Among the many entities operating under the parent company, Interactive Brokers LLC is regulated by the US Securities and Exchange Commission (SEC) and by the Commodity Futures Trading Commission (CFTC), while Interactive Brokers Canada Inc is a member of the Investment Industry Regulatory Organization of Canada and of the Canadian Investor Protection Fund.
Low-cost Stock Trading
Interactive Brokers (IB) allow Canadian citizens access to a range of small-cap, mid-cap and large-cap domestic and international stocks from a single account at low brokerage fees.
The company offers three types of pricing plans to suit its client’s needs:
IB’s Tiered Pricing plan features low commissions, which diminishes based on trade volume. The plan also includes exchange, regulatory, and clearing fees.
The following table shows commissions charged on trading US stocks:
As for trading in Canadian stocks and ETFs, IB will charge commissions as follows:
Note * IB’s Fixed Rate Pricing plan features a fixed fee charged per share or a particular per cent of the trade value. The plan also includes exchange and regulatory fees.
Stock trading comes with different fees:
IBKR Lite pricing plan allows for unlimited trading of US-listed stocks and ETFs with no commissions charged.
Trading Platforms
IB allows for direct market access to financial markets through a range of platforms:
Best Order Execution Engine
Canada-based traders can have their orders executed at the best possible price via IB’s SmartRouting engine. The latter explores the best stock, option and combination prices available at the moment clients place their orders and looks to immediately fill those orders electronically.
Last year, the brokerage insured average savings of $6.70 per trade for its clients, and after considering average commissions charged, the average net benefit for clients amounted to $4.42 per trade.
Friedberg Direct powered by AvaTrader has spreads from 0.6 pips
Canadian traders looking to use fixed spreads for their trading should turn to Friedberg Direct, powered by AvaTrade. AvaTrade is a reputable forex and CFD broker running the Friedberg Direct trading platform technology. Friedberg Direct was founded in 1971 and forms one of the largest independent brokers in Canada.
Friedberg Direct’s Fixed Spreads Analysis
Friedberg Direct offers you the ability to trade forex using fixed spreads. Fixed spreads remain constant except in extreme market conditions. This predictability can provide advantages over floating spreads which fluctuate when economic conditions become unfavorable, thus leading to large losses.
Friedberg Direct does not charge commission fees (on top of their spreads) meaning your trading costs are part of the fixed spread. Fixed spreads are usually wider than standard spreads (which also have no commissions) to cover the brokers’ risk for spread fluctuations, AvaTrade’s spreads, however, are competitive with standard spreads from brokers.
Low Funding Requirements
Friedberg Direct has a CAD $50 minimum requirement for deposits or withdrawals. Depositing and withdrawing with a Friedberg Direct account can be done using credit cards, debit cards, or wire transfers.
Friedberg Direct Offers Trading Platform Features
Friedberg Direct offers excellent liquidity on a wide range of financial products. Over 100 financial instruments are available for you to trade including forex, stocks, commodities, indices, forex options, and bonds.
If you are looking to trade options, then AvaTrade might be the best broker around. AvaTrade offers AvaOptions trading app/platform, which will help you make the most of your options trading. Few CFD brokers offer tools specially designed for options trading. This broker offers 42 forex pairs plus gold and silver for options trading.
Forex trading platforms available through Friedberg Direct include:
A large choice of trading platforms makes it easy to benefit from more ways to trade. Trading automation is available as Expert Advisors or EAs through MetaTrader 4 and 5 platforms. Traders can also achieve automation through social and copy trading tools such as ZuluTrade, DupliTrade and AvaSocial.
Advanced Protection With AvaProtect
If you desire a higher level of risk management beyond the standard stops, AvaTrade offers AvaProtect™. If you are using AvaTradeGo, for a small premium, you can buy time to reverse your trade. This means that if your trade moves in an unfavorable direction during this set period of time, you can pull out of the trade.
AvaTrade allows hedging your position to offset the risk associated with complex instruments such as CFDs.
Last Notes On Friedberg Direct With AvaTrade
As a reputable independent broker since 1971, Friedberg Direct is regulated by CIRO, meaning they offer a relatively safe environment for traders of all levels. AvaTrade also offers various educational materials through Friedberg Direct such as economic calendars, eBooks, training videos, beginner guides, and of course the option to open a demo account along with professional customer support ready to answer all your questions.
The best forex brokers Canada has to offer, FP Markets is the best choice for Canadian traders. At the same time, Fusion Markets is a top pick for low spreads, Forex.com offers the largest range of currency pairs and Interactive Brokers is the best ECN broker with direct market access.
Getting started in forex trading is as simple as following these 5 steps:
Check our step-by-step guide on how to choose a forex broker: 10 Critical things to consider when choosing a Forex broker in 2023.
Forex trading is a legal business in Canada. The forex industry is regulated by the main regulatory body the Canadian Investment Regulatory Organization (CIRO). This body was previously known as the Investment Industry Regulatory Organization of Canada (IIROC). While CIRO is responsible for determining Forex regulations at a national level, each province can also implement their own local rules.
Forex market regulation is one of the key factors, which our team considers when assessing Canadian Forex brokers. If we are to focus on the regulatory environment in Canada, we should point out that there are 15 different organizations that supervise the Forex market. Among these the top regulatory bodies are the:
In terms of regulation, the respective organizations in Canada treat Foreign Exchange either as a security or as a derivative. However, we should note this brings about different types of regulation since organizations have to enforce the regulatory framework at the provincial and territorial levels along with the regulatory framework at the federal (national) level. This creates a bit complex environment that, to a certain extent, makes it quite challenging for a business entity to decide whether to function as a Forex broker in the local market or as an advisor.
For example, Autorite des Noves financiers (AMF) supervises the Quebec financial sector activity and, under its provisions, regulated brokers need to provide further protection to Quebec residents. Also, among the financial institutions in Canada, the Alberta Securities Commission (ASC) has the tightest regulations.
Formerly called the Investment Industry Regulatory Organization of Canada (IIROC), CIRO aims to ensure a fair market environment and financial stability, the CIRO acts as the main Foreign Exchange regulatory body, which is empowered to supervise the business activities of Forex brokers and advisors that operate in the local Forex market.
The CIRO has the authority to carry out:
One major aim of Forex market regulation is to ensure client protection. In this line of thought, similar to other regulatory bodies across the globe (FCA, ASIC, CySEC, etc.), CIRO enforces a system of rules aimed at preventing the insolvency of brokers it regulates. In doing so, the organization imposes minimum capital requirements of brokerages’ business operations, conducts strict monitoring of brokers’ financial condition and also requires them to carry out comprehensive financial reporting.
CIRO also postulates that clients’ assets are kept fully segregated from the assets of brokerages, which minimizes the risk of customer funds being lost in case of insolvency or bankruptcy, and also reduces the probability of those funds being used by brokerages inappropriately (as operating capital or budget for marketing campaigns, for instance).
Client accounts, that are held at CIRO-regulated investment intermediaries, are also safeguarded by the Canadian Investor Protection Fund (CIPF) within particular limits.
We should note that CIRO-regulated investment firms are members of the CIPF. Thus, if customer funds are missing because of a firm’s insolvency, the shortfall will be covered by the CIPF. The Fund provides coverage of up to CAD$1 million per account.
Last but not least, CIRO requires that online brokers must have proper procedures to supervise customer accounts and all their clients’ activities, while also complying with stern Know Your Customer and Anti-Money Laundering policies.
The CIRO has imposed restrictions on the maximum leverage, which could be offered to retail clients by Canadian Forex brokers. At present, the maximum leverage allowed stands at 1:50 and can be reviewed or changed by the regulatory authority. Forex brokers that are based in Canada may offer the highest leverage only on currency pairs, including CAD, but they could reduce it depending on the liquidity of other currency pairs in their product offerings.
CompareForexBrokers is a financial portal that strives to provide forex traders of all backgrounds with reliable information. Our detailed Forex Brokers Canada review was conducted by our independent analysts, who based the review on a wide range of factors including:
Only the best Canadian forex brokers have made it into our ranking system. We also made a list of a mix of local and overseas brokers on our accepting client’s comparison. Our proprietary star ranking system ensures that you will avoid scam FX brokers. The selection of top forex brokers in Canada was narrowed down to only 4 names, so forex traders won’t get overwhelmed trying to find a broker to fit their needs.
Visit the homepage for Canadian traders on compare forex brokers if your looking for a more specific niche of broker comparison.
Risk Warning: Forex trading carries a high level of risk, especially when using leverage, which can magnify both profits and losses. Before deciding to invest in the spot foreign exchange market, make sure you understand how trading on margin works.
If you are still unsure what broker is right for you we have a forex comparison that helps you find the right broker based on your needs.
Ask an Expert
Can i trade cryptocurrency in Canada?
We are not actualy sure what policy IIROC have when it comes to Crypto CFDs, What we can tell you is that no CFD brokers offer Crypto trading with CFDs.
I noticed on some sites that there are Canadian regulated brokers vs traders that accept Canadian traders. What’s the difference?
To legally offer trading services to Canadian residents, the broker needs to be regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and in some cases by the financial regulator of the province the broker is offering services to. One example is Autorite des Marches Financiers (AMF) in Quebec, all brokers offering trading services to residents of Quebec need to be regulated by both IIROC and AMF. Fortunately, most Canadian provinces and territories will accept brokers with only IIROC regulation. Using IIROC guarantees the broker complied with the requirements to operate in Canada and is part of the Canadian Investor Protection Fund (CIPF).
Brokers that accept Canadian traders are not regulated by IIROC, these brokers don’t even operate in Canada but will accept clients from Canada. These brokers will usually be using an offshore regulator such as the Seychelles Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI FSA), Vanuatu Financial Services Commission (VFSA), Financial Services Commission (IFSC) in Belize and The Securities Commission of The Bahamas (SCB). Brokers using these regulators do offer a level of protection to their clients but it won’t be of the standard set by IIROC. There is no CIPF (though some brokers do have their own insurance plans) and avenues to settle disputes might not exist. These brokers will usually have higher leverage available – up to 500:1 and also offer Cryptocurrencies for trading.
Note: when choosing an offshore broker, it is wise to check the broker is using an offshore broker as some brokers might not be regulated at all.
Can I trade forex with $100 CAD
Most trading accounts regulated in Canada don’t have a minimum deposit. For example, OANDA doesn’t have a minimum to open a live account.
what’s the maximum leverage you can get with etoro?
It is up to 100:1 Gold and other commodities, and major indices. x50 for non-major currency pairs.