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).
How To Choose The Best Forex Broker In Canada
When choosing the best forex broker in Canada, you should consider the following:
- Regulation – Choose a forex broker that is regulated by the Canadian Investment Regulatory Organization (CIRO).
- Range of Markets – Select a forex broker that offers the range of financial markets and currency pairs you wish to trade in.
- Trading Costs – Find a forex broker with the lowest spreads and commissions.
- Trading Tools – Select a forex broker that offers a wide range of advanced research tools and trading tools such as pip value calculators, risk meters, guaranteed stop-loss orders, and charting tools.
- User Experience – Choose a forex broker that has a user-friendly trading platform that offers fast execution speeds and excellent mobile functionality.
- Support – Find a forex broker that offers decent customer support as well as a demo trading account and educational resources for you to learn how to trade forex effectively.
The best brokers in Canada will also have mobile trading apps, allowing active traders to stay on top of their trades from their phones.
Can Candian Brokers be Trusted?
Yes, these Canadian brokers can be trusted as they are regulated by the Canadian Investment Regulatory Organization (CIRO). You can comfortably trade in the forex market with these service providers that are regulated in Canada.
Which Is The Best Forex Broker In Canada Overall?
OANDA is the best forex broker in Canada overall as it offers competitive low spreads, fast execution speeds, and a smart user interface that is easy to use. Additionally, OANDA offers a great choice of trading platforms, a wide range of currency pairs, and some of the lowest commissions in the market.
What Are The Costs And Fees Of Trading Forex In Canada?
The costs and fees of trading forex in Canada are broken down into spreads and commissions. Spreads are the difference between a currency pair’s buying and selling price. Commissions are small additional fees attached to each trade, usually calculated by round-turn per 100k traded.
Standard accounts include the brokers fees in the spread, RAW or ECN accounts have commission costs in addition to the spread.
Is Forex Trading Taxable In Canada?
Yes. Forex trading is taxable in Canada, and profits are taxed as capital gains. Therefore, Canadian traders pay Capital Gains Tax on all their forex trading profits.
How To Start Trading Forex In Canada
1. Select a Forex broker.
Select a CIRO-regulated forex broker that offers the range of markets and currency pairs you wish to trade in. Find a forex broker that offers low trading costs and advanced trading tools to facilitate your trades. Additionally, you should look out for other features, such as a user-friendly platform, fast execution speeds, and good mobile functionality for traders wanting to trade on the go.
2. Open a demo account.
Open a demo account and take advantage of all educational resources to learn how to trade forex as effectively as possible. Most online forex brokers offer unlimited demo accounts where you can trade using virtual funds to practise your trading strategies before trading on the live markets. Demo accounts mimic live markets and have advanced trading tools. In a demo account, you can also experiment with stock trading or trading Bitcoin in your retail investor account until you become comfortable trading with financial instruments in a live account.
3. Fund your account.
Once you are confident you understand the fundamentals of forex trading, open an account, upload your Know Your Customer (KYC) documents, and fund your account. As a beginner trader, we recommend you start trading with small capital amounts to begin with.
Can I Trade With High Leverage In Canada?
Yes, you can trade with high leverage in Canada, although it is restricted by CIRO. You can trade with a maximum leverage of 50:1.
What Are The Forex Broker Regulations In Canada?
|Forex Broker Regulations In Canada
|Trader funds must be kept in a separate account and not used as operating capital
|Must have a dispute resolution process
|Must submit financial reports for regular review
|Broker must be CIRO-regulated
|Must have at least $1,000,000 in operating capital
|Must observe leverage limits of a maximum of 50:1
|Should publish product disclosure documents
|Must be protected by the Canadian Investor Protection Fund
|Must communicate all changes in status of client accounts and charges
What Broker has The Best Forex Trading App In Canada?
OANDA is the broker with the best forex trading app in Canada, as it offers MetaTrader 4 (MT4), TradingView, and OANDA Trade (fx Trade) trading apps. All of these apps have fast execution speeds, excellent mobile functionality, and smart user interfaces that are easy to use.
Which Forex Broker Is Best For Trading CFDs In Canada?
OANDA is the forex broker that is best for trading CFDs in Canada as it offers the OANDA Trade (fx Trade) platform that allows you to trade in smaller lot sizes than other brokers, and it has a wide range of CFD products to choose from.
What is CIRO in Canada?
CIRO is short for the Canadian Investment Regulatory Organization, a regulatory body that oversees forex trading in Canada. It was previously known as the Investment Industry Regulatory Organization of Canada (IIROC).
Is forex trading good for beginners in Canada?
Yes, forex trading is good for beginners in Canada so long as you know what you are doing. Many forex brokers offer demo accounts and a wide range of educational resources where you can learn the fundamentals of forex trading.
What is a forex broker and what do they do?
A forex broker is a financial services company that offers traders access to a platform for buying and selling foreign currency. They automatically match buyers and sellers through an electronic platform also known as a foreign exchange.
How much money do I need to deposit to begin trading forex?
While some forex brokers have no minimum deposit requirements, you will need $100 or even higher in your trading account to open a trading position due to margin requirements.
Is it possible to trade forex without a broker?
No, trading forex without a broker is not possible. Brokers connect you with the liquidity pools so you can trade on foreign exchange markets.
What are the non-trading fees for forex brokers in Canada?
The following are non-trading fees for forex brokers in Canada:
- Overnight fees
- Deposit and withdrawal fees
- Some brokers charge a monthly or annual account maintenance fee
- Some brokers charge a currency conversion fee if you are depositing with a currency not linked to your account
- Some brokers charge an account inactivity fee if you have not used your account in a set period of time
How would I know if my forex broker is regulated in Canada?
You can check on your forex brokers’ website to see if they are regulated in Canada. Alternatively, you can go to the CIRO website and search for your broker’s registration number to see if they are regulated.
Which forex broker has the best trading platform in Canada?
OANDA is the forex broker that has the best trading platform in Canada as they offer a wide range of excellent platforms such as MetaTrader 4 (MT4), TradingView, and OANDA Trade, a proprietary platform that offers excellent overall functionality.
Which forex broker has the best MetaTrader in Canada?
OANDA is the forex broker that has the best MetaTrader in Canada with its smart user-friendly user interface, excellent mobile functionality, and fast execution speeds.
Can you do copy trading in Canada?
Yes, you can do copy trading in Canada. Copy trading allows new traders to learn how to trade, and it gives professional traders a competitive edge as you copy trades from the highest-performing traders in the industry.
Is it possible to trade with non-CIRO-regulated brokers in Canada?
Yes, it is possible to trade with non-CIRO-regulated brokers in Canada. Non-CIRO-regulated brokers are called offshore brokers and while it is legal, we recommend you approach with caution as CIRO cannot help you if you have any issues. Using a CIRO-regulated broker ensures you can trust the broker and that your funds are segregated from the broker.