5 Best Canadian Forex Brokers in 2021

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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

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.

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Top-rated Canadian broker
7% annualized interest on free margin
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Negative balance protection is available
Swap-free accounts are available
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
IIROC regulation
Choice of MT4 or MT5 platforms
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Excellent ECN trading conditions
Scalping available

Best Forex Brokers in Canada at a Glance

IFC Markets, 600+ Instruments, 0% deposits, free Autochartist signals .
Legacy FX, CySEC regulated broker with solid deposit/withdrawal options.
FP Markets, ECN trading with leverage up to 1:500.
Friedberg Direct, Competitive spreads + deposit insurance up to 1 million CAD.
FXCC, Spreads from 0.0 pips,$0 trading commission. Leverage up to 1:500.

IFC Markets

5.0/5 in this category
In Summary
600+ Instruments, 0% deposits, free Autochartist signals

IFC Markets is one of the longest running brokerage firms in Canada, and has been operating since 2006. In that time, IFC Markets has managed to attract over 165,000 clients from over 80 countries around the globe. IFC Markets has earned a reputation of reliability and trust, thanks to multiple licenses from top regulators including the Cyprus Securities and Exchange Commission (CySEC), the Malaysia Labuan Offshore Financial Services Authority (LOFSA), and  the British Virgin Islands Financial Services Commission (BVI FSE). IFC Markets features a fantastic range of assets, including more than 600 liquid assets spanning six categories. 

Pros

  • Vast Educational Material

  • Demo Accounts

  • Several Trading Platforms

  • CySEC Regulation

Cons

  • No Bonuses or Promotions

Legacy FX

5.0/5 in this category
In Summary
CySEC regulated broker with solid deposit/withdrawal options

Established in 2012, LegacyFX is a popular CFD and forex broker in Canada. The firm is regulated through the Vanuatu Financial Services Commissions (VFSC) and is a trusted broker, segregating all client funds in a separate account from their own assets. LegacyFX uses the MetaTrader 5 (MT5) platform as its main forex trading platform. Since the MetaTrader platforms are the most popular in the world, potential traders can sign up with LegacyFX in Canada or anywhere else in the world and start trading forex, CFDs and other assets instantly. LegacyFX MT5 platform can be accessed through a variety of devices, including both PC and Mac, as well as Android and iOS mobile devices. 

Pros

  • Swap-free trading and high leverage

  • Autochartist plugin for MT5 and in-house research

  • Educational tools for beginner traders

  • Loyalty Program for affiliates

Cons

  • High minimum deposit

  • Not all account types have access to core features

FP Markets

5.0/5 in this category
In Summary
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. 

Pros

  • 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

Cons

  • Availability of Iress geographically restricted

Friedberg Direct

4.5/5 in this category
In Summary
Competitive spreads + deposit insurance up to 1 million CAD

Friedberg Direct was founded in 1971 and has since become one of the largest independent brokers in Canada. Friedberg Direct is governed by the Investment Industry Regulatory Organization of Canada or IIROC. That also means it will be covered by the Canadian Investor Protection Fund (CIPF) which covers a depositor up to $1,000,000 if a member firm fails. Friedberg Direct is powered by AvaTrade Technology.

Pros

  • Very Competitive Spreads

  • Deposit Protection

Cons

  • No Bonuses

  • No Education Offering

FXCC

4.5/5 in this category
In Summary
Spreads from 0.0 pips,$0 trading commission. Leverage up to 1:500

Launched in 2010, FXCC is a popular trading service provider for Canadian traders, thanks to raw commission-free spreads in its ECN XL account and a substantial 100% bonus on your first deposit with them. FXCC built its brokerage unit on ECN/STP execution and has the added advantage of no dealing desk intervention. Another unique aspect of FXCC is its proprietary development of a price aggregator, which allows FXCC clients full access to the very best prices available at any given moment. In addition, FXCC clients can access a complete ‘out of the box’ MetaTrader 4 (MT4) platform and, for those that are looking, an MTM/MAM platform is also available. The aggregated benefit of this is that FXCC clients are able to manage multiple accounts from within a single user interface. 

Pros

  • Choice of Trading Platforms

  • Customizable Demo Account

  • Tight Spreads

Cons

  • Missing Information on the Demo Account

Top 5 Tips for Choosing the Best Canadian Forex Broker

  1. Choose a Forex broker in Canada that is regulated by the Investment Industry Regulatory Organization of Canada, or IIROC.

  2. Choose a Forex broker in Canada that also gives you the best Forex trading platform in Canada for your needs.

  3. Find a Forex broker with good execution speeds to make certain you get the best prices when executing your trades.

  4. 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?

  5. 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

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.

Understanding IIROC Regulation

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.

How to Verify IIROC Regulation

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.

Do the Same Trading Rules Apply to Canadian & American Forex Brokers?

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.

Do the Same Trading Rules Apply to Canadian & American Forex Brokers?

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.

Forex Trading 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.

Account Types

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.

Trading Platforms and Software

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.

Conclusion

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.

FAQs

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.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.