If you are a Canadian resident, can you trade with Eightcap? During my in-depth Eightcap review, I evaluated if and how Canadian residents can open an Eightcap account. Learn about the pros and cons of trading with Eightcap as a Canadian resident, understand the broker’s regulatory environment, and the steps you should take to ensure compliance with Canadian rules and regulations.
Opening an account at Eightcap as a Canadian Resident
The Eightcap account types consist of a more expensive commission-free account and a competitively priced, commission-based alternative. The former is also available as a TradingView account for social traders who wish to connect with 50M+ peers.
Traders can evaluate the broker’s trading conditions in the Eightcap demo account before funding their preferred account type.
Here are the steps involved in opening an Eightcap trading account:
1. Click “Create account” on the homepage.
2. Follow the on-screen instructions to open your trading account.
3. Eightcap will e-mail confirmation upon registration.
4. Verify your trading account by sending a copy of your government-issued ID and one proof of residency document dated within the past three months.
5. Fund your Eightcap trading account.
Eightcap Regulation
My Eightcap review found that the broker complies with five well-known Forex regulators and maintains a spotless operational track record.
Here are the five Eightcap regulators:
- The Securities Commission of The Bahamas (SCB) - license number SIA-F220
- The Australian Securities and Investment Commission (ASIC) - license number 391441
- The UK Financial Conduct Authority (FCA) - license number 921296
- The Seychelles Financial Services Authority (FSA) - license number 196744
- The Cyprus Securities and Exchange Commission (CySEC) - license number 246/14
Eightcap’s Offering in Canada
The Eightcap offer for Canada is available under the SCB and FCA entities.
The most notable features are:
- Code-free algorithmic trading via Capitalise AI for MT4
- The FlashTrader plugin for MT5
- An AI-powered economic calendar
- Competitive Eightcap fees in the commission-based Raw account with raw spreads from 0.0 pips for a commission of C$7.00 per 1.0 standard round lot
- Quality beginner education and research via Eightcap Labs and Eightcap Trade Zone
- A trustworthy Eightcap withdrawal process, including cryptocurrencies
Trading with Eightcap as a Canadian Resident – Pros and Cons
Canadian traders should consider the pros and cons of trading with Eightcap before funding an account.
The Pros of Trading with Eightcap as a Canadian Resident
- Competitive Eightcap leverage of up to 1:500 with negative balance protection
- A well-balanced asset selection, including cryptocurrencies
- Deposits and withdrawals in Canadian dollars via five payment processors
- Accounts in Canadian dollars
- No restrictions on scalping and automated trading
The Cons of Trading with Eightcap as a Canadian Resident
- No local presence or regulation
- No investor compensation fund
Bottom Line
Eightcap caters to Canadian traders from its Bahamas and Seychelles entities, where it offers the most competitive trading conditions. The Eightcap minimum deposit of C$100 is low considering the cutting-edge trading tools, including Capitalise AI for code-free algorithmic trading in MT4.
Seasoned traders benefit from a well-balanced asset selection, while beginners receive quality tools under Eightcap Labs and Eightcap Trade Zone. Eightcap does not offer any bonuses in Canada, but it has had promotional campaigns for selected clients in the past, which it may reintroduce at its discretion. Canadian traders must pay taxes, and Canada has a progressive tax system with taxes between 15% and 33% for federal taxes, while provincial and territorial taxes range between 11.5% and 25.75%. Therefore, the highest combined tax rate is between 44.5% and 54.8%. Alternatively, if Forex income classifies as capital gains, the tax rates range between 28.3% and 41.6%. Given the complex structure, I recommend traders consult a licensed professional to ensure compliance with local and federal tax laws, assist with classifying Forex income, and optimize taxable income. Eightcap has its headquarters in Australia, and has offices in the Bahamas, the UK, Seychelles, and Cyprus. Canada has a complex financial regulatory environment, with each territory under different regulations, and Eightcap has no license with the Canadian Investment Regulatory Organization (CIRO). Still, Eightcap fully complies with the rules and regulations of the countries where it holds regulatory licenses, which accept Canadian traders. This places Canadian traders under different legal and regulatory jurisdictions and Canadian Forex traders should consult a licensed legal professional to clarify the legality of opening offshore trading accounts. Eightcap accepts Canadian resident clients and onboards them via its Bahamas and Seychelles entities.FAQs
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Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.