Why Compare Forex Brokers Before Trading?

As a Canadian Forex and CFD retail trader, there are a number of important considerations to make when choosing a broker that best matches your trading style. Each broker offers different features so The expert team at Compare Forex Brokers has gone over these considerations through extensive broker analysis so you don’t have to. These reviews are also region-specific to suit Canadian traders.

Some of the considerations taken into account include trading costs, trading account types, trading platforms and products such as currency pairs, indices and ETFs. We also cover less obvious factors such as educational resources, regulations and customer support.

Not all CFD brokers are created equal, and each has different identifying features. Each broker also has a unique point of difference which is the reason we chose that particular brokerage. We break down each broker and these features as part of our Canadian forex broker comparison. As an example, some brokers offer No Dealing Desk, or STP (straight-through-processing) execution while others are market makers. This affects the spreads on offer for each broker (spreads are typically wider with Market Makers due to acting as the direct counterparty to your trade).

Best CIRO Regulated Brokers

The Investment Regulatory Organization of Canada (IIROC) is the financial regulator of Canada. As a Canadian resident, when choosing a forex broker, it is best to choose a broker regulated by IIROC as it means the broker can legally offer trading services in Canada. Using an IIROC-regulated broker also means the broker complies with the operational and regulatory requirements set by the Canadian financial regulator and ensures the broker is legit as there are many unregulated scam brokers operating offshore.

CompareForexBrokers.com cover all the leading IIROC-regulated brokers such as OANDA, Friedberg Direct Powered By AvaTrade Technology, Friedberg Direct Powered By FXCM Technology, Interactive Brokers, CMC Markets and Forex.com. Our best forex broker Canada section compares the top 10 IIROC-regulated brokers based on spreads, trading platforms and features.

All brokers on the list offer CFD trading with leverage up to 1:50. All brokers allow you to choose from at least 40 currency pairs when trading with some having over 80 pairs. Some brokers also offer other CFD products such as stocks and indices however IIROC regulations don’t permit cryptocurrency CFD trading. Trading platforms are available in MetaTrader 4, MetaTrader 5, TradingView and Capitalise.ai, some brokers also offer their own proprietary platforms.

Brokers Accepting Canadian Clients

While Canadian clients can choose a broker regulated by Canada’s regulator, CIRO (Canadian Investment Regulatory Organization) which was formally known as the IIROC, there are also a handful of reputable offshore forex brokers that will accept Canadian clients.

Benefits to choosing an offshore forex broker include higher maximum leverage with many offering 500:1. This contrasts with Forex brokers regulated by IIROC who must limit leverage to 50:1 and often lower. There may also be a superior range of trading products, not available with IIROC-regulated brokers, of particular notice is the availability of cryptocurrencies.

Online brokers without IIROC regulation that accept Canadian traders include Eightcap and Fusion Markets.
Our Forex Brokers Accepting Canadian Clients compared the top brokers in Canada, combining CIRO regulated and offshore brokers based on spreads, trading platforms and products.

Additionally, we have compiled a list of IIROC-regulated Forex Brokers for Canadian traders who only want brokers regulated by the national financial body.

Forex Trading Platforms

As a Canadian trader, the Forex trading platform you use is vitally important. There are many trading considerations to make when choosing the right platform. While MetaTrader 4 is still the most popular Forex trading platform globally, there are many other great choices such as MetaTrader 5, TradingView and Capitalise.ai.

Some Forex brokers have their own proprietary platforms, while others only offer third-party platforms. Forex brokers with a great selection of trading platforms include Forex.com, Interactive Brokers and CMC Markets. We also look at which platforms are available for desktop, via mobile apps for Android and iOS and which allow web trading view webtrader.

In addition to trading platforms, we also cover social trading and copy trading platforms and other trading tools the broker provides.

Our Best Forex Broker Platform page compares the best trading software for Canadian platforms based on capabilities, ease of use and other features such as minimum deposit and funding methods like PayPal and credit cards. We also look at the broker’s demo accounts and any other global markets to trade with the broker’s derivative products.

If you have just started your trading journey, we have compiled a list of the best forex trading platforms in Canada for beginners.

Lowest Spread Forex Broker

Trading costs, including spreads and commissions, are two of the most important considerations to make when choosing a broker in Canada. In the fast-paced and volatile world of currency markets, keeping your spread costs low will impact your overall trading costs and trading experience. Choosing a Forex broker that offers tight spreads is therefore crucial for Canadian traders to keep trading costs low. Forex Brokers that offer competitive spreads include Friedberg Direct (powered by AvaTrade), Oanda and CMC Markets.

Our Lowest Spread Canadian Forex Brokers compares the forex brokers with the lowest spreads in Canada for major forex pairs such as EUR/USD, CAD/USD and CAD/GBP. as well as a number of other important trading factors.

You can also check out our ECN Forex Brokers in Canada page for forex brokers in Canada that offer low spreads as there is no dealing desk with STP (Straight Through Processing) execution.

CompareForexBrokers Comparison Methodology

The Compare Forex Brokers consists of a team with extensive experience writing about Forex. When assessing a broker, the team are focused on reviewing the essential information about the brokers that traders need to know when choosing a broker. This information covers the following:

Trading Accounts
Broker Spreads (where practical)
Trading Platforms (including social trading and copy trading tools)
CFD Trading Products
Minimum Deposit and Funding Methods
Regulation

Occasionally we will also look at risk management tools and education features. We also might look at the type of trading execution the broker offers such as STP, ECN and Market Maker.

As these pages are specific to Canada, the focus is on IIROC brokers. However, it should be noted that some brokers are regulated in multiple regions. IIROC Brokers such as Forex.com, CMC Markets, OANDA, FXCM and AvaTrade may have other subsidiaries regulated in one or more of the following jurisdictions – ASIC in Australia, FCA in the UK, CySEC for Cyprus and Europe, NFA and CFTC in the USA. As a trader in Canada, your main concern will be to use a broker’s subsidiary regulated by IIROC other regulators such as those mentioned above (I.E. ASIC, FCA) don’t apply within Canada. IIROC does not regulate the following brokers nor do they accept Canadian clients – Pepperstone, eToro, XTB, IC Markets and Saxo Bank.

In addition to our forex broker comparison of Candian platforms, we also provide general information covering topics such as trading strategies, and education such as currency pairs – however, we don’t provide trading advice, as information is always prevalent in nature.

Understanding The Risks Of Forex Trading

Disclaimer: CFD trading means you are trading on margin or using leveraged products. IIROC limits leverage to 50:1 however some offshore brokers have a leverage of up to 500:1. While leverage is a useful tool to increase your profits when prices move in the right direction, it can lead to outsized losses when price movements are unfavourable.

When trading with leverage, it is essential you do your research and ensure you appreciate the risks that may be involved. Leveraged trading is best for experienced trading, traders lacking in experience should practice with a demo account until they gain the confidence to trade with leverage.

FOREX BROKER COMPARISONIN CANADA FOR 2023