Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.

15 Best Forex Brokers for Canadian traders

Canadian Forex Brokers

Canada residents choose Forex brokers in Canada. Even when there are many options across the globe. Why? It is assumed that brokerage companies from the USA, Australia, the UK, and other European Union nations are more reliable than others around the world. Over the previous years, FX brokers from Canada have not been in a position to replicate this kind of success, especially in the FX industry. Nevertheless, brokerage firms in Canada do offer outstanding advantages to both institutional and individual traders.

A notable advantage of using a brokerage firm based in Canada is the CIPF (Canadian Investor Protection Fund) which guarantees investors up to $1 million of their capital if their brokerage firm becomes bankrupt. (See all CIPF members here) This is a relatively huge sum of money, particularly when compared to the 50,000 Euros offered to clients of FCA Forex brokers. This means that forex trading in Canada is suitable if an investor has more than one million dollars in capital. It's also important to know: The Canadian Investment Regulatory Organisation (CIRO), Canada's regulatory agency, must approve any forex broker before they can take on clients who are forex and CFD traders.

Moreover, brokers don't follow stringent regulations. Canadian trading regulations are committed to the investors' well-being and permit FX traders to use global brokerage firms. The table below can help you learn more about Canadian brokerage companies and the main features that they offer. 

Best Canadian Forex Brokers comparison Table

  • Key information
  • Trading
  • Payment systems
  • Trading platforms
  • Trading instruments
  • Support
  • Trading accounts
  • Account settings
  • Spreads
  • Promotion
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Deposit bonusAccount
1Forex.combest broker200122

Payment systems

ECN, MM
100 $1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
2FXCM1999
ASIC, FCA
8

Payment systems

NDD
5000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
3Saxo Bank199218

Payment systems

ECN, STP
10000 $1:100N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
4OANDA1996
CFTC, NFA
17
--1:50N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
5Interactive Brokers1977
FCA, CFTC

Regulated

4

Payment systems

MM
10000 $1:40N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
6FP Markets2005
ASIC, CySEC
14

Payment systems

DMA
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
7AVATrade2006
ASIC, CBI
14

Payment systems

NDD
100 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
8Vantage FX2009
ASIC
14

Payment systems

ECN
200 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
9IFC Markets2006
FSC, CySEC
36

Payment systems

STP
1000 $1:400N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
10eToro2007
ASIC, CySEC

Regulated

29

Payment systems

NDD, STP
50 $1:30N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
11Octa FX2011
FCA, FSA
5

Payment systems

ECN
100 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A50 %

Deposit bonus can only be credited to a verified account. Deposit bonuses can only be credited to any MT4 | MT5 account.

12EasyMarkets2001
ASIC, FSC
4

Payment systems

MM
--N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-
13MultiBank Group2005
ASIC
1

Payment systems

ECN
50 $1:500N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A-


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Who are the most trusted forex brokers in Canada?

The firms authorized by Canada's new regulator, the CIRO, were compiled into a list, and the brokers were then evaluated based on their overall ranking to determine which ones were the best. This is our ranking of the best FX brokers in Canada:

  • Forex.com - best for high-volume currency traders
  • MultiBank Group - best for Social trading, Low spread forex trading
  • eToro - best for Cryptocurrency, stock and ETF traders, Social or copy trading
  • OANDA - best for forex trading with high-quality and easy-to-use trading platforms
  • FP Markets - best for pure Forex traders who seek a competitive commission-based trading environment from an upgraded MT4 trading platform
  • Interactive Brokers - best for advanced brokers who desire access to complex trading algorithms with Comprehensive asset screening and analytical tools
  • Saxo Bank - best traders who want a wide product selection with low forex and fund fees
  • FXCM - best for algorithmic forex traders and algo trading
  • IFC Markets - best for CFD trading
  • EasyMarkets  best for Trade Up to 1:2000 Leverage on MT5
  • CMC Markets - best for advanced forex traders, because it has low spreads and a whopping 338 currency pairs
  • Octa FX - best for beginner and intermediate traders due to its easy-to-use platform, educational resources, and low minimum deposit requirements
  • AVATrade - best for various deposit and withdrawal options, all of which are free of charge
  • Vantage FX - best for beginner traders
  • FXCC - best ECN broker

History of Forex Trading in Canada

The study of FX trading in Canada shows that foreign exchange reforms were introduced between 1939 and 1945 (World War 2). It also led to the establishment of the Foreign Exchange Control Order and Exchange Fund Account in 1971. The former was tasked to regulate foreign currency while the latter took care of the gold reserve. Through Foreign Exchange Control order, FECB (Foreign Exchange Control Board) was supposed to strengthen the Canadian dollar against the sterling pound and the U.S dollar. The Canadian banks and investors were supposed to sell all their foreign exchange to FECB.

The history also shows the difference between economic reforms instigated during World Wars 1 and 2. During World War 1, there were no strict regulations and the UK was the main foreign creditor. However, things changed in 1939 when the US become the principal source of foreign exchange in Canada but most US investors did not invest a lot of money in the country. This continued until 1950 when the economy of Canada started improving.

Another significant event worth noting was in the 1940s when there was a debate regarding whether the off-the-record rate was the accurate reflection of the Canadian dollar. Famous economists like the then financial advisor to the government warned small traders against investing and recommended the introduction of exchange control systems that would balance trade.

Regulation of Canadian FX Brokerage Companies

Regulation Canada

Although a developed nation, Canada allows its residents to use international brokerage firms without a local license. This move enhances competitiveness in the industry but also has some serious disadvantages. For example, the country’s retail FX market regulatory body can’t control scammers from other regions This often results in the loss of huge amounts of capital invested by local investors from the country. Also, it is worth noting that no single Canadian body has the authority to issue fines or sanctions on these international brokers.

Canada lacks a principal regulatory body; the country has the biggest number of regulators in the globe. The Canadian government plans to unify all these organizations but the plan has not been put into effect. This comes after several recommendations from advisors proposed the creation of one agency with a mandate of controlling and supervising all FX stakeholders in the country. Nonetheless, Canadian markets are classified into diverse territories that enforce different trading regulations through numerous regulatory bodies.

The Relationship between IIROC and the territorial regulatory organizations

One of IIROC’s main mandates is to regulate national financial markets. With the provision of two regulatory bodies, traders and even brokers have found the regulations of the FX market to be unclear and confusing. Consequently, both the national and territorial agencies have tried to unify the situation leading to the introduction of new rules that guide the industry's conduct.

Initially, confusion arose because different territory regulators classified trading rules in their ways. For instance, in Quebec, the main concern was derivative while in Montreal it was more about security. This meant the brokers had to follow 2 different sets of rules. With the introduction of new rules, both the provincial and national regulators use the same regulations.

IIROC FX Trading Guidelines

All Canadian brokers offering services that involve trading in currency pairs must be members of IIROC. Another new rule enforced by the commission is the leverage limit of 18:1. Although this move reduces the risks of losing, it makes trading a thing for those with huge capital.

Moreover, all employees including salespeople of an IIROC-registered brokerage must be competent and experienced.

Can one choose a Broker who is not IIROC-registered?

It is illegal for you to use a broker not registered and regulated by the national regulator. However, the existing provincial rules allow investors to trade with international FX brokers without any repercussions. Provided, there are numerous regulatory bodies in Canada; Canadian citizens can invest with any global broker.

How to Pick the Best Canadian Forex Brokers

With the intrusive search option on the IIROC official website, you can check whether your broker is IIROC-registered or not. Researching before investing is very vital; there are a handful of brokers who claim to be registered yet they are not. You will also get information related to approval and disciplinary actions.   

Becoming a successful Forex Broker in Canada

Fx for Canadians

At topbrokers.com, you will find that there is a more rewarding world of making money and trading other than bonds and stocks. Well, bonds and stocks are popular investment methods but the most profitable financial market is FX. This is because investors, governments, and banks take a chance on the cost of global currencies.

Learn the basics of Forex trading; Get an Education

To become a successful broker, you should have skills, patience, confidence, focus, objectivity, and confidence. In addition, you need an understanding and knowledge of geopolitical happenings that affect global currencies every single minute. For instance, an experienced broker should sell Canadian dollars and purchase euros in the event they predict the Canadian dollar will lose its value as compared to the euro.

There is no one size fits all approach when it comes to FX trading, if there were, every Tom, Dick, and Harry would be Canadian forex brokers. Just like the stock market, to become a successful broker, you must take a course where you learn to analyze technical and fundamental indicators.  Knowledge in the FX industry is power; the more you know about FX markets, the better equipped you are to analyze different global currencies as well as profits and reduce losses in the lucrative industry in question. You will also be in a position to identify different trends as they arise, make use of risk management strategies, and learn how to establish techniques and targets as a way of generating consistent income.

Register as an FX Broker

All brokers and individuals working for/with an IIROC-regulated brokerage must be registered with the national regulatory body. Registration with the commission shows investors and the general public that the member is committed to upholding the practice's ethics and standards. To be registered with IIROC you must have completed and passed the CSC (Canadian Securities Course), be an employee of an IIROC-regulated company, and undergo a three months training immediately after registration where one should not handle retail clients

Continuing training for Canadian Forex Brokers

IIROC-regulated brokers should meet the CE (Continuing Education) requirements to retain their work eligibility and registration. Continuing education comprises professional development and compliance courses. Normally, the duration of time one has been certified determines their requirements. Although CSI global education courses can be used to meet these requirements, it is wise for brokers to check with the commission for course selection and guidelines.

Want to Start an FX Brokerage Outfit?

Before investing, a wise prospective broker should put the following questions into consideration:

  1. How soon do you want to start your brokerage?

  2. How will you be processing transactions?

  3. Will the jurisdiction maintain and secure clients?

  4. Which bank will you use?

  5. How much is your capital?

So what do you do from there? Visit financial websites like topbrokers.com and speak to a consultant. They will answer all your questions as well as offer you support and advice that will get you started.

Limitations and Comparison to Other Countries/scams

FX brokerage firms in Canada don't adhere to the same regulations that are followed by brokers from neighboring nations like the USA. For instance, brokerage companies in the US follow CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association) regulations such as implementing a set leverage of 50:1 on maximum currency and 20:1 on minors, a no hedging policy and also implementing the FIFO rule. Although such regulatory restrictions reduce risks, they limit the true potential of retail FX trading. There are, however, few restrictions in Canada but the country can enforce policies that will keep financial malpractices and violations to the minimum.

Moreover, the country is quite lenient when it comes to international transactions from global forex brokers, as long as both brokerage firms adhere to the money laundering laws of the land. In the USA and European Union nations, for example, traders and investors are not permitted to send any funds to international forex brokers.  Although these strict restrictions on international payment are a result of threats to national security, they limit citizens while transferring their funds.

One of the major concerns of all traders is the security of their funds since there are chances of their broker going into bankruptcy. As a result, CIPF guarantees investors $ 1 million in compensation. Compared to 50,000 Euros offered by UK-regulated forex brokers, CIPF compensation gives traders the liberty to trade any amount of money with no worries about their Canadian Forex broker shutting up the company. 

Who are the most trusted forex brokers in Canada?

Due to the popularity of forex, thousands of new FX brokers have swamped the market, all in quest of your patronage. Look for recommendations and reviews from forums such as topbrokers.com; it will help you find the right Forex broker in Canada for you. Below is a review of the top 3 Canadian Forex brokers. 

#1 XM

XM Forex Broker was founded in 2009 by Trading Point of Financial Instruments Company. Since then, it has served over 10 million clients. This can be attributed to reliable customer care support. This brokerage offers 5 days a week and 24 hours in a day customer support in 20 different languages.

Account opening with XM is very simple. First, you register then indicate your preferred currency and finally select the payment method. Some of the payment methods include credit cards, Western Union, Skrill, bank wire, MoneyGram, and China UnionPay.

#2 TrioMarkets

TrioMarkets is a major player as far as FX is concerned. The broker has numerous account packages that suit both small and big traders. This successful brokerage not only offers a reliable FX trading platform but also trains investors. This, as a result, prevents conflict of interests. 

#3 Friedberg Direct

Friedberg Direct is one the oldest Canadian Forex brokers. Following the regulatory changes in Canada, FXCM withdrew from the Canadian market and redirected its all clients to Friedberg Direct, which provides similar services as FXCM.

This brokerage does not a wide range of accounts; instead, they have legal structures such as corporate, partnership, and individual. Traders can also choose between popular trading platforms like trade stations. Ninja Trader, and MetaTrader 4. 

Make the right choice

The list above is as candid as possible to assist you in making an informed and confident decision. Well, different brokers may be the best for different investors depending on their needs. It is therefore always advisable to first open a demo account with your preferred brokers. Taken together, you are a resident of a nation with so many possibilities and options

RISK MANAGEMENT IN FOREX Tips

Forex investors are in the business of making money, which makes it prudent for them to minimize any potential losses. Unfortunately, most forex investors never consider risk management when choosing their trading strategies. They just come up with several that they are willing to lose and start trading. But trading without risk management is gambling since you just want a big win without caring about your capital.

With a risk management plan in forex, you take action to protect your investment from potential losses. You should note that high risk may mean higher returns, but this also means that you stand to lose the most. The best skill a trader can invest in is to minimize any risks and maximize profits.

Forex risk management allows you to set up trading rules and measures to offset improper market movements. That said, you will have to make plans for a few months or weeks before you start trading. Implementing these risk management strategies well is the surest way to ensure you have a profitable trading experience.

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Risk Warning: Your capital is at risk. Statistically, only 11-25% of traders gain profit when trading Forex and CFDs. The remaining 74-89% of customers lose their investment. Invest in capital that is willing to expose such risks.