With a population of over 37 million people, Canada has a thriving Forex scene. The country also has one of the best sets of regulations to protect traders from poor practices by disreputable Forex brokers.
Choice of trading platforms & cutting-edge trading tools
Seven payment processors accepting CAD & four cryptocurrency processors.
CAD base accounts & six payment processors accepting CAD transactions.
Capitalise AI for algorithmic trading without coding & Crypto Crusher
No minimum deposit, CAD base accounts, plus numerous payment options.
Trusted broker with a clean operational track record & 24/5 customer support.
IIROC-regulated subsidiary & CAD trading accounts
Broad choice of trading platforms & copy trading services
Selection of copy trading services & full support for algorithmic trading
Trading accounts with CAD as a base currency
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- Axi, Spreads starting from 0.0 pips + leverage up to 1:500.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
5.0/5 in this category
ECN trading with leverage up to 1:500
FPMarkets is a well-established forex and CFD broker operating out of Sydney, Australia’s financial capital. However, as a Canadian trader, don’t let the fact that these guys are located in Australia put you off. As it so happens, Australia’s financial regular, ASIC, is more lenient when it comes to leverage than regulators in the USA, EU or the UK are. This allows FPMarkets to offer their clients leverage as high as 500:1. FPMarkets is considered to be one of the best forex and CFD brokers in the world today, and they tend to stand out from the crowd thanks to their very diverse range of tradeable assets.
Choice of trading platforms and auxiliary trading tools
Very competitive cost structure and excellent asset selection
Low minimum deposit requirement and leverage of up to 1:500
Well-regulated and trustworthy
5.0/5 in this category
Competitive pricing + excellent daily videos
The bulk of Canadian retail Forex trading volume occurs via international brokers, but many have restrictions on accepting Canadian-resident clients. Eightcap onboards Forex traders from Canada via Eightcap International, a subsidiary in St. Vincent and the Grenadines, operated by CLMarkets Limited (registration number 24750). It allows Canadian Forex traders to manage portfolios in a competitive environment, including higher leverage versus Canadian-based brokers and lower trading fees.
Eightcap International features MT4, MT5, Capitalise AI, Crypto Crusher, and TradingView. Algorithmic traders can qualify for free VPS hosting, and beginners get quality research and education, making Eightcap an excellent choice for Canadian-resident Forex traders.
Low minimum deposit and high leverage of up to 1:500
Competitive cost structure
Excellent technology infrastructure and seasoned management team
Daily research and quality educational content
5.0/5 in this category
Spreads starting from 0.0 pips + leverage up to 1:500
Axi ranks among the leading Forex/CFD brokers in Canada. It has an annual trading turnover exceeding $2.4 trillion, and the excellent trading infrastructure includes 20+ liquidity providers. Free VPS hosting for qualifying traders delivers low-latency 24/5 algorithmic Forex trading. Traders get MT4, which Axi upgrades with Autochartist plus the MT4 NextGen suite. It adds advanced management tools, sentiment trading, and enhanced ordering.
Beginner traders can benefit from the Axi Academy and webinars, while copy traders can rely on the embedded MT4 service. Axi maintains competitive trading fees with raw spreads for a commission of $7.00 per 1.0 standard round lot.
No minimum deposit and high leverage for most international traders
Autochartist plugin for MT4 and API trading for algorithmic traders
AI-powered third-party trading analytics platform PsyQuation
Excellent trading costs and social trading plus educational resources in 24 languages
4.5/5 in this category
Highly regulated, choice of fixed or floating spreads
AvaTrade serves traders in Canada from its Friedberg Direct subsidiary. Friedberg Direct is a division of Friedberg Mercantile Group LTD, regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and protected by the Canadian Investor Protection Fund (CIPF). AvaTrade Canada has no restrictions on short selling.
Traders can get the MT4 and MT5 trading platforms and AvaOptions, the dedicated options trading platform of AvaTrade. The commission-free cost structure shows competitive minimum Forex spreads of 0.6 pips or $6.00 per lot. The asset selection of 170+ trading instruments suffices for most beginner traders, which AvaTrade supports with quality educational content.
High-quality educational offering via SharpTrader
Excellent choice of trading platforms catering to various trading needs
Broad asset selection and cross-asset diversification opportunities
Well-regulated and trusted broker with oversight from a central bank
4.5/5 in this category
Best ECN trading environment, with scalping and hedging
BlackBull Markets has been serving Canadian traders since it was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. BlackBull Markets is a cosmopolitan broker, with additional branch offices in New York and Malaysia, a factor many Canadians appreciate. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for Canadian traders with more focused strategies not requiring wide diversification.
ECN/NDD execution model with deep liquidity
Institution-grade pricing for retail traders via proprietary price aggregation
ZuluTrade and Myfxbook for social trading
Leverage of up to 1:500
Top 5 Tips for Choosing the Best Canadian Forex Broker
Choose a Forex broker in Canada that is regulated by the Investment Industry Regulatory Organization of Canada, or IIROC.
Choose a Forex broker in Canada that also gives you the best Forex trading platform in Canada for your needs.
Find a Forex broker with good execution speeds to make certain you get the best prices when executing your trades.
When trying to find the best Forex broker in Canada, you want to make sure they have great support. For example, can they be contacted by phone as well as email?
The best Forex brokers in Canada will have tight spreads and will sometimes allow you to choose between floating and fixed spreads to meet your needs.
Whether you’re a Canadian resident or not, finding the best Canadian Forex brokers can help you find the best investor protection available anywhere in the world as well as access to some of the best Forex trading platforms and online trading software.
There is a great deal of choice amongst Canadian Forex brokers from account types, trading platforms, trading software, and margin requirements. Our team of analysts and experts at DailyForex have searched and found the best Forex brokers in Canada so you do not have to do the hard work.
Forex Regulation in Canada - What do Canadian Forex Regulators Do?
Getting Started with Forex Regulations in Canada
The first thing to know about Canadian Forex brokers is that they are classed as “investment dealers” by the country’s regulators and as a result Forex regulation in Canada is governed by the Investment Industry Regulatory Organization of Canada, or IIROC. This is great news because IIROC has some of the best rules anywhere in the world making Canadian Forex brokers amongst the safest in the world. If you are looking for the best Forex broker for your trading, Canadian Forex brokers are a great please to start looking.
Canada is uniquely divided into multiple jurisdictions along the lines of their provinces and territories. Each province has its own regulatory body that can provide additional rules over and above IIROC requirements. For example, residents in the province of Alberta have to meet additional conditions, such as their net worth and level of trading experience, before being permitted to open a Forex trading account. Fortunately, many of the local layers of regulation have been recently harmonized, making it more consistent nationally.
Canada is one of the very few developed nations in the world that allow its citizens to invest their money with overseas Forex brokers that are not regulated in Canada. If you want the full protection of IIROC regulation as a trader, it is up to you to choose a Forex broker that is regulated by IIROC.
IIROC has a comprehensive rule book for Canadian Forex brokers that govern how clients’ deposits are held, how much leverage is allowed and what information must be disclosed. When a Canadian Forex Broker is regulated by IIROC, it also means they will be protected by the Canadian Investor Protection Fund (CIPF) which covers depositors up to $1,000,000 each if a Forex broker fails. The best Forex brokers in Canada will have this level of coverage.
IIROC will set out a Canadian Forex brokers’ minimum capital requirement and screen every single employee for suitability of professional qualifications and good character. The maximum leverage which may be offered to any retail client by an IIROC regulated Canadian Forex broker is 50 to 1, which is a relatively generous limit for a Western OECD nation: in comparison, in the European Union, the maximum leverage is 30 to 1. Unless you are trading a very small account, 50 to 1 is enough leverage to enable profitable trading but still control risk so you do not lose your entire online Forex trading account overnight.
It is easy to verify which Forex brokers in Canada are covered by IIROC. You can do that by scrolling down to the bottom of the homepage of the Forex broker to see their regulatory information. Some Forex brokers in Canada also put this information in the “About Us” section of their websites. You can visit IIROC’s website directly where it will list which Forex brokers in Canada they cover – this is the best way to verify that the information provided by the Forex broker in Canada is correct.
Different rules apply to Forex brokers in Canada compared to Forex brokers in the US. For example, there are different leverage and margin rules between Forex brokers in Canada versus the US. Also, many Forex brokers in the US will not accept accounts from Canadian residents. If you are looking for a broker that offers the best currency trading platform in Canada for your trading needs, all the trading platforms offered globally are available from Forex brokers in Canada. For example, MetaTrader 4 and MetaTrader 5 are a standard for many Forex Brokers in Canada.
The Advantages of Choosing Forex Brokers in Canada
The biggest advantage of picking Forex brokers in Canada is the strong regulations they must follow that ultimately protects customers. When you look at Forex Canada, it has amongst the best investor protection in the world.
Minimum Deposit Required for Trading with Canadian Forex Brokers
There are no minimum deposit requirements for Forex trading in Canada. It will depend on the broker, the type of trading account you want to open, for example, a mini account or a standard account, and the currency trading platform you want to use.
Choosing a Forex Broker as a Canadian Trader
Naturally, you want the best Forex broker for your online trading. This means finding a broker that has the best forex trading platform in Canada and the best additional software to ultimately give you the best chance of success.
Forex trading is legal in Canada. Forex brokers and service members must have a membership with the Investment Industry Regulatory Organization of Canada (IIROC) and a regulatory license from any of the ten provincial regulators, which creates varying regulatory environments within Canada. It is unique compared to other countries, as IIROC membership is a requirement, but each of the ten provinces regulates Forex traders residing within their jurisdiction. It is one reason many international Forex brokers choose not to operate in Canada. The compliance fees to ensure a broker complies with the ten districts and the potential number of clients makes Canada unattractive for offshore brokers.
The IIROC and provincial regulators classify Forex as a security or derivative. The Canadian Investor Protection Fund (CIPF) offers protection of up to C$1,000,000 per taxable account, plus an additional C$1M per RRSP/RRIF account and RESP account for total coverage of C$3M.
Forex traders in Canada should start with in-depth education, which provides the foundation for successful Forex trading. Understanding the impact of psychology on trading and deploying strategies to overcome this challenge is one of the biggest barriers to success in trading and for many takes a long time to accomplish.
Here are tips once Forex traders in Canada feel comfortable approaching live trading:
- Respect Forex trading as the high-skilled profession it is.
- Have realistic profit expectations concerning your account size.
- Understand leverage and use proper risk management.
- Trade from a quiet place
- Avoid emotional decision making.
- Explore the importance of algorithmic trading.
The Canadian Dollar is a commodity currency, as Canada relies heavily on the oil sector and other hard commodities and precious metals. Some Canadian Sollar strategies exploit the relationship between global net oil exporters, like Canada, and oil importers, like Japan. They therefore trade the CAD/JPY pair, but Forex traders should keep an open mind and explore all possibilities since the US Dollar is the default oil quote currency.
Technical analysis forms the basis for most Forex traders, and the most profitable ones rely on algorithmic trading. MT4 is the leading algorithmic trading platform, and it is available in Canada.
The best Forex trading app in Canada depends on individual preferences. MT4 is the leading Forex trading platform, which applies to its powerful desktop client, but its mobile app, despite 10M+ downloads and a 4.3 rating out of 5.0 from 850K+ reviews on Google Play, lacks user-friendliness and overall capabilities compared to alternative well-developed proprietary trading apps available on the market.
The MT4 mobile app fulfills the functions traders require, which are primarily copy trading, alerts, and portfolio management. Forex traders in Canada have other options and should explore them to find their best trading app.
Trading fees are the most important aspect when trading with a broker, as they directly impact profitability. They can also reveal which trading strategies a broker actively supports and passively discourages, despite often noting no outward restrictions.
Trading fees at brokers break down into trading and non-trading fees. Understanding trading fees will help traders comprehend what they must pay, why they must pay, and how those costs compare between brokers.
Trading fees are:
- Spreads (the difference between the bid and the ask price of an asset)
- Commissions (applicable in commission-based accounts for access to raw spreads, usually resulting in lower overall costs)
- Swap rates (charged on leveraged overnight positions)
- Currency conversion fees (they apply each time the currency denomination differs from the account base currency)
Non-trading fees are:
- Deposit fees
- Withdrawal fees
- Inactivity fees
- Currency conversion fees (if the transaction currency differs from the account base currency)
1. Micro Accounts
These allow your trade sizes to be as little as one micro lot. A micro lot is 1,000 units of a base currency, or a hundredth the size of a standard lot. One pip of a currency pair based in U.S. dollars is equal to $0.10 when trading a micro lot. For example, if you are in a EUR/USD long trade and the price moves up by 150 pips, your trading profit is $15 for every micro lot you trade.
2. Mini Accounts
Mini accounts allow you to place trades at one mini lot or greater. A mini lot is one-tenth the size of a standard, or 10,000 units of a base currency. One pip of a currency pair based in U.S. dollars is equal to $1.00 when trading a micro lot. For example, if you are in a GBP/USD short trade and the price moves down by 50 pips, the profit is $50 for every mini lot you have traded.
3. Standard Accounts
These typically have a minimum trade size of one standard lot. A standard lot is the equivalent of 100,000 units of the base currency. One pip of a currency pair based in U.S. dollars is equal to $10.00 when trading a standard lot. For example, if you are in an AUD/USD long trade and the price moves higher by 25 pips, your profit is $250 for every standard lot.
4. VIP Accounts
Many brokers offer “VIP” accounts for customers with high deposit levels. Aside from getting the best trading conditions in the form of execution speed and spreads, VIP accounts normally come with a dedicated account manager to handle the trader’s requests.
5. Islamic Accounts
Forex typically involves interest paid or received when holding positions for longer than a day. This is incompatible with Islamic finance principles, so Islamic Forex accounts were created to meet this gap in the market. These types of accounts replace the variable interest charge with a fixed charge for overnight positions or no charge at all thereby making currency trading compatible with Islamic finance principles.
6. Minimum Deposits for Different Account Types
When you are deciding what type of account you want, the biggest factor will often be the amount of money you have available to deposit with your Forex broker in Canada. Micro accounts and mini accounts will normally require a smaller deposit than a standard account. For example, if you want to start with as little as a $100 deposit, you will probably be eligible for a micro account. In comparison, a standard account will require you to fund $1,000 or even $10,000.
7. Different account types come with different trading costs
Remember, some brokers will have different spreads and different commission levels for different account types. Typically, Forex brokers in Canada will give better trading costs in the form of spreads and/or commissions for larger account types that require a higher minimum deposit. Also, some forms of execution, such as ECN execution can only be delivered with minimum account sizes. ECN execution is where the broker passes your trade directly to the underlying liquidity pool and does not trade against their clients.
When you are choosing the best Forex trading platform in Canada for your trading needs, the trading platform plus any associated or add-on software should be compatible with the account type you want for your trading.
As a general rule, trading platforms and software should not be a top reason for choosing a particular broker. There are usually more important issues. For example, you might dislike a particular broker’s platform and software offering, but if this broker is the cheapest and most tax-efficient one you can find, plus it allows you to trade everything you want to trade, the best option might be to try to get around your dislike of their trading platform, unless the platform is so badly designed that it affects your trading significantly.
Canadian Forex brokers tend to be quite varied in their respective platform offerings. Although MetaTrader 4 and MetaTrader 5 are offered by most Canadian online brokers, most of them also offer their own proprietary platforms which vary considerably. One of the top Canadian brokers, LegacyFX, offers no choice of trading platform, requiring all clients to trade using the MetaTrader 5 platform. This could be a problem for anyone wishing to move from an existing MetaTrader 4 setup as there is not full compatibility between MetaTrader 4 and MetaTrader 5 software.
Canadian regulators are committed to the welfare of their investors and require all Forex brokers in Canada to be regulated by IIROC that protects the interests of Forex traders. If you want the best Forex broker in Canada, make sure they are regulated by IIROC and are covered by the CIPF.
The best Forex brokers in Canada will have the Forex trading platform and trading software that you need to succeed. They will provide great support by email, live chat and even over the phone. They will execute your trades efficiently and fast. Lastly, the best Forex brokers in Canada will be able to do this and still offer low spreads and commissions so your costs of trading will be small.
Forex trading in Canada is legal but presents a fractured and challenging regulatory environment, as each of the ten provinces regulates Forex individually, and all brokers must be IIROC members. Most offshore brokers avoid Canada due to its uneven regulatory approach. The Canadian Forex market has a restrictive regulatory environment but offers the highest investor compensation fund, with maximum coverage of up to C$3,000,000 per individual.
A few well-known and highly trusted Forex brokers cater to Forex traders from Canada, where traders have few restrictions on which strategies that can be deployed, but do lack access to some competitive trading tools available elsewhere.
Is Forex trading illegal in Canada?
Forex trading is perfectly legal in Canada. Currency trading in Canada is highly regulated by the Investment Industry Regulatory Organization of Canada (IIROC). Forex brokers in Canada that fall under the IIROC authority are also part of the Canadian Investors Protection Funds (CIPF) which protects individual Forex investors up to $1,000,000 each if a broker fails. The best Forex brokers in Canada will be regulated by IIROC.
Do Forex brokers lose money?
The best Forex brokers in Canada have segregated accounts for their clients. That means client money is held separately from the company’s assets. If a Forex broker fails and goes out of business, clients’ money will be protected and distributed back to the clients.
What is the best Forex broker for beginners?
Firstly, the best Forex brokers in Canada for beginners and advanced traders are those that are properly regulated. Secondly, the best Forex brokers in Canada will have multiple Forex trading platforms available to its traders so you can choose the trading platform that suits your style of trading. Thirdly, you want to make sure that you can open an account type that has the leverage and margin you need.
How to trade Forex in Canada?
You can trade Forex in Canada the same way as in the rest of the world. For example, if you want to make sure you have the best Forex trading platform, you will find that the best currency trading platform in Canada will be as good as anywhere else in the world. Once you have chosen the best Forex broker to meet your needs, you can choose the best Forex trading platform and the account type that is suitable for your trading.
Is trading Forex legal in Canada?
Trading Forex is perfectly legal in Canada. However, all Forex brokers operating in Canada are subject to tight and sometimes complex regulation, and individual Canadian provinces have their own specific laws and regulations governing Forex trading.
Is day trading illegal in Canada?
Day trading is legal in Canada, but you may encounter regulatory difficulties if you day trade through a TFSA account.
Is MetaTrader 4 available in Canada?
Yes, MetaTrader 4 is available in Canada, but few brokers cater to Canada, and the availability of MT4 is scarce.
Is Forex trading tax-free in Canada?
No, Forex trading is not tax-free in Canada, and Canadian resident Forex traders should contact a licensed professional for assistance with applicable taxes, rules, laws, and regulations.
Who regulates Forex in Canada?
Each of the ten provinces has its regulator, and all brokers must be IIROC members. It creates a fractured, challenging, and uneven Canadian Forex market.
How much do Forex traders make in Canada?
No details exist on how much Forex traders make in Canada, and any attempts to answer this question are mere guesswork. Most retail traders lose money, and the profit potential depends on the Forex traders rather than underlying market conditions.