Introduction
Navigating the dynamic world of forex trading in Canada demands a meticulous selection of a broker. In the realm of international markets, forex trading resonates notably with Canadian residents.
We have curated the best brokers in Canada for you in this comprehensive article, where you will come across their minimum deposit, spreads, etc.
To gain the confidence of traders and for traders to know that their funds are secured, they should choose a regulated broker.
Thus, forex brokers must gain approval from the Canadian Investment Regulatory Organization (CIRO) to operate in this sphere, bolstering consumer protection.
The Canadian forex landscape boasts stringent regulation, offering a safeguard against scams that hamper some global markets.
In this article, we will go through the best forex brokers thriving in Canada and what services they are providing.
Best Forex Brokers In Canada
Capitalix
Capitalix is an award-winning broker that deals in CFDs. The broker holds a Securities Dealer license for smooth trading. With low spreads and no trading commission, Capitalix broker is popular amongst traders.
| REGULATED BY | Financial Securities Authority |
| FOUNDED IN | 2020 |
| RECOMMENDED FOR | Trading in CFDs |
| MINIMUM DEPOSIT | $20 |
| MAXIMUM LEVERAGE | 1:200 |
| TRADABLE ASSETS | Commodities, Cryptocurrencies, Forex, Indices |
Forex.com
Forex.com offers interest payments and cash rebates for high-volume trading. This prominent broker also provides a dedicated relationship manager for guidance and priority support.
The Active Trader Program Member enjoys waived bank fees for their wire transfer and also gets access to exclusive events and product previews.
| REGULATED BY | IIROC, FCA, NFA, CFTC, FSA, CySEC, MAS, ASIC, CIMA, |
| FOUNDED IN | 2001 |
| RECOMMENDED FOR | Advanced professionals |
| MINIMUM DEPOSIT | $100 |
| MAXIMUM LEVERAGE | 1:50 |
| TRADABLE ASSETS | Forex, CFD, Crypto, F&O, and Stocks |
Oanda
Oanda is a registered forex broker in Canada. The broker offers commercial and standard access for Canadian Citizens to the forex market.
The broker is known for its user-friendly platform, competitive spreads and excellent customer service.
| REGULATED BY | IIROC, ASIC, FCA, CFTC, MAS |
| FOUNDED IN | 1995 |
| RECOMMENDED FOR | Most reliable broker in Canada |
| MINIMUM DEPOSIT | $0 |
| MAXIMUM LEVERAGE | 1:50 |
| TRADABLE ASSETS | Forex, Cryptocurrencies, CFDs, Currency Pairs, Spread Betting, Oil, & Metal |
QuesTrade
Questrade is a regulated broker with no account opening fees and low commission while trading. The broker charges no fees while transferring your account.
Questrade also won the Best Canadian Brokerage award in 2022. The account offered by Questrade is straightforward and easy to use.
| REGULATED BY | IIROC, Canadian investor protection fund |
| FOUNDED IN | 1999 |
| RECOMMENDED FOR | Self-directed investors and traders |
| MINIMUM DEPOSIT | $1000 |
| MAXIMUM LEVERAGE | – |
| TRADABLE ASSETS | Indices, Mutual bonds, Forex, Stocks, CFDs, Metals |
AvaTrade
AvaTrade is a well-established regulated broker, which is great for copy trading, also known as social trading.
The broker offers Vanilla options on FX Pairs. The broker seems to provide competitive pricing and does not take commissions.
| REGULATED BY | CIRO |
| FOUNDED IN | 2006 |
| RECOMMENDED FOR | MT4 and Proprietary platform |
| MINIMUM DEPOSIT | CAD 0 |
| MAXIMUM LEVERAGE | 1:400 |
| TRADABLE ASSETS | Forex, Indices, Bonds, CFDs on Stocks |
FXCM
FXCM is a CFD and Forex broker which offers extensive education and research materials.
The broker also provides Free Practice Trading Account for beginners. The extensive instruments and a separate category, namely, CryptoMajor, ForexBaskets and StockBaskets, to choose from.
| REGULATED BY | CIRO |
| FOUNDED IN | 1999 |
| RECOMMENDED FOR | Best for Beginners |
| MINIMUM DEPOSIT | $50 |
| MAXIMUM LEVERAGE | 1:2000 |
| TRADABLE ASSETS | Forex, Shares, Commodities, Cryptocurrencies |
FP Markets
FP Markets is a Tier 1 and Tier 2 regulated broker which offers trading of over 840 instruments from an ECN trading account. The broker offers the lowest spreads as claimed by them. This broker provides $0 withdrawal fees.
| REGULATED BY | ASIC, CySEC, SVG |
| FOUNDED IN | 2005 |
| RECOMMENDED FOR | No withdrawal fees |
| MINIMUM DEPOSIT | $100 |
| MAXIMUM LEVERAGE | 1:500 |
| TRADABLE ASSETS | Forex, Commodities, Indices, Shares |
CONCLUSION
Canada offers numerous advantages to online Forex traders, sparking a growing interest in affiliating with Canadian Forex brokers. These brokers extend an array of trading services, and some even go beyond the norm by providing commission-free or low-commission trading options, thereby enhancing the value for their users.
Despite these appealing attributes, it’s worth noting that there isn’t a centralized regulatory body overseeing market insights, given the market’s fragmentation across various jurisdictions.
As a user, it becomes your responsibility to ensure that the chosen online Forex broker is regulated, secure, and dependable, thereby minimizing potential losses. Equally significant is confirming whether the platform aligns with your specific requirements, as retail investor accounts tend to incur losses when trading CFDs or other assets.
FAQs
Is the practice of forex trading permissible within Canada’s borders?
Yes, forex trading is allowed within Canada’s jurisdiction. However, it is advisable to opt for a broker who is duly authorized and held in high regard. Ideally, you should consider a broker endorsed by the Canadian Investment Regulatory Organization (CIRO).
Is OctaFX accessible for utilization within Canada?
OctaFX, renowned for its excellence in catering to forex algorithmic traders, operates within Canada without being under CIRO regulation. Despite this, Canadian traders can still avail themselves of OctaFX’s forex trading services, taking advantage of a notably low minimum deposit requirement of only $25.
Is MetaTrader 4 permitted for use in Canada?
Yes, MetaTrader 4 is an option within Canada’s trading landscape. However, it’s worth noting that only a limited number of brokers serve the Canadian market, resulting in a relatively sparse availability of the MT4 platform.
Are taxes applicable to forex trading in Canada?
Yes. When you generate profits through forex trading in Canada, it is obligatory to declare those earnings on your tax return. The gains must be categorized as capital gains and should be included on Schedule 3 of your tax return.
Is HotForex operational in Canada?
HotForex does not presently offer its services in the United States and Canada.
Is day trading permitted in Canada?
Absolutely, day trading is permitted in Canada. However, it’s crucial to ensure that your chosen discount brokerage firm operates under the regulation of the IIROC.
Is it possible to withdraw funds from a Forex card while in Canada?
Yes, You have the option to utilize the Forex Card for cash withdrawals at ATMs in Canada that accept VISA, VISA Plus, or Mastercard.
Comparing Largest Forex Brokers in Canada
| Broker | Minimum Deposit | Leverage | Spreads | Regulation | Trust Score | Official Site |
| Pepperstone | $0 | 30:1 | 1-1.3 pips | FCA (UK), ASIC (Australia), DFSA (UAE) | 9 | https://pepperstone.com/en/ |
| IC Markets | $200 | 1:500 | 0.0-0.6 pips | SCB | 8 | https://www.icmarkets.com/global/en/ |
| AvaTrade | $100 | 30:1 | 0.9 Pips | ADGM, FRSA | 9 | https://www.avatrade.com/ |
| eToro | US $50 (US $10 in the UK and USA), Bank Transfer must be at least US $500 | 30:1 | 1 pip | CySec (Cyprus) and the FCA (UK) | 8 | https://www.etoro.com/ |
| IG Groups | $250 | 1:50 (US), 1:30, 1:20 | 0.8 pips | FINRA, SIPC, NFA | 9 | https://www.iggroup.com/ |
| First Prudential Markets | $100 | 500:1 | 0.0 pips | ASIC | 8 | https://www.fpmarkets.com/ |
| CMC Markets | 0 | 30:1 | 0.7 pips | FCA | 9 | https://www.cmcmarkets.com/en/ |
| FXCM | $50 | 1000:1 | 0.2 pips | AFSL | 95 | https://www.fxcm.com/markets/ |
| Oanda Corporation | US$9,000 | 20:1 | 1 pips | CFTC | 93 | https://www.oanda.com/currency-converter/en/?from=EUR&to=USD&amount=1 |
| Interactive Brokers LLC | $100 | 50:1 | 0.2 pips | US SEC and CFTC | 99 | https://www.interactivebrokers.co.in/en/index.php?f=40071&wid=1078256036 |
| GO Markets | $200 | 500:1 | 0.0 pips | FSC Mauritius | 7 | https://www.gomarkets.com/en/ |
| Tickmill | $100 | 1:500 | 0.0 pips | FSA | 83 | https://www.tickmill.com/ |
| AxiCorp | $0 | 1:500 | 0.4 pips | AFSPL & ASIC | 92 | https://www.axi.com/int |
| Saxo Bank | $2,000 | 10:1 | 0.4 pips | FSA | 99 | https://www.home.saxo/ |
| XTB | 0 | 30:1 | 0.1 pips | FRN | 96 | https://www.xtb.com/int |
| ThinkMarkets | $0 | 30:1 | 0 pips | FSA | 67 | https://www.thinkmarkets.com/en/ |
| TMGM | $100 | 1:500 | 1.0 pips | ASIC | 81 | https://www.tmgm.com/au |
| Plus500 | $100 | 1:300 | 0.6 pips | Cyprus Securities and Exchange Commission | 99 | https://www.plus500.com/en-IN/ |
