The best Forex / CFD brokers for Canadian residents are the ones that deliver an honest and well-regulated service, which lets you trade what you want to trade under good execution conditions, and which offer competitive fees. Of these brokers, the ones that will be best for you will depend upon what you want to trade, and your trading style and frequency.
Our team of researchers looks at the brokers in the retail Forex / CFD industry offering services to Canadian-resident traders and selects the very best ones. We choose these Forex brokers in Canada by researching and judging all aspects of their offerings, giving greater weight to the most important factors, such as fees and regulatory status. We only feature the Forex brokers in Canada that top the list, highlighting the areas where they are especially strong.
For over a decade, DailyForex has been the trusted Forex broker authority, helping traders identify the best platforms to meet their specific needs. Our broker ratings are compiled using a rigorous comparison process that examines regulation, trading conditions, and unique features. Whether you're looking for brokers in your region or those offering cutting-edge tools like copy trading or algorithmic strategies, our curated lists are designed to simplify your broker search.
All Round Best Forex Broker in Canada
At DailyForex, we rate the overall best Forex broker in Canada as FP Markets, because it offers:
- A corporate structure with Tier 1 regulation.
- Competitive trading fees.
- Wide choice of asset classes and tradable instruments.
- Strong security and client protection.
Best Forex Brokers in Canada Comparison
| | | ||
Regulators | ASIC, CMA, CySEC, FSCA | BVI, FSCA, LFSA | ASIC, CySEC, FCA, SCB | IIROC |
Year Established | 2005 | 2006 | 2009 | 1971 |
Execution Type(s) | ECN/STP | ECN/STP | ECN/STP, Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 1.2 pips | $4.00 | 1.0 pips | N/A |
Average Trading Cost GBP/USD | 1.4 pips | $24.00 | 1.2 pips | N/A |
Average Trading Cost Gold | $0.16 | $45.00 | $0.12 | N/A |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Proprietary platform, NetTradeX | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based |
Islamic Account | ||||
Negative Balance Protection | N/A | |||
| Visit Website | Visit Website | Visit Website | Visit Website |
Broker Review Summaries
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets offers Canadian residents access to a wide range of global markets under competitive terms. Clients may trade over 10,000 instruments across multiple asset classes (Forex, equities, indices, commodities, metals, and cryptocurrencies). FP Markets offers competitive trading fees, with its Raw accounts delivering fluctuating spreads starting at 0 pips. FP Markets is regulated by several authorities globally, including the tier 1 entities ASIC in Australia and CySEC in Europe. Client funds are segregated and deposited in AA-rated banks, and negative balance protection is guaranteed, creating a secure client environment. FP Markets also offers an unusually broad choice of trading platforms, including MetaTrader 4, MetaTrader 5, cTrader, TradingView, and IRESS. Finally, FP markets provides educational resources, research tools, and a good level of customer service, making them one of the best Forex brokers in Canada.
Pros & Cons
- Offers over 10,000 tradable instruments.
- Accepts Canadian residents as clients.
- Very competitive spreads and fast execution.
- Gives negative balance protection and segregated accounts for extra security.
- Not regulated by CIRO.
IFC Markets
In Summary 1:400 maximum Forex leverage with floating spreads from 0.4 pipsIFC Markets offers Canadian-resident traders access to a wide range of CFDs across several asset classes (Forex, indices, commodities, cryptocurrencies, and approximately 48 individual Canadian equities CFDs. A choice of trading platforms is offered between MetaTrader 4, MetaTrader 5, and the proprietary NetTradeX. The minimum deposit is only $1. IFC Markets has competitive spreads, starting from only 0.4 pips on the EUR/USD currency pair, making this broker one of the best in Canada. Canadian residents are serviced from the broker’s British Virgin Islands FSC-regulated branch, which holds professional indemnity insurance from Lloyd’s. A notable unique feature at IFC Markets is their patented Portfolio Quoting Method, which allows traders to create limitless customised tradable instruments of two defined virtual portfolios against each other.
Pros & Cons
- Access to over 600 instruments including Canadian equities.
- Tight spreads and high leverage.
- Minimum deposit is only $1.
- Free bank wire deposits / withdrawals.
- Not regulated by CIRO.
Eightcap
In Summary 1:500 maximum leverage and cutting-edge trading toolsEightcap services its Canadian resident clients through its Bahamas branch, which is regulated by the Securities Commission of the Bahamas (SCB). Canadian residents are offered a selection of over 800 CFD instruments to trade across several asset classes (Forex, commodities, indices, stocks, and cryptocurrencies). A minimum deposit of $100 USD is required to open an account at Eightcap. Concerning trading fees, Eightcap offers a commission-based account with raw spreads starting at 0 pips on Forex currency pairs. Eightcap provides a choice between three advanced trading platforms—MT4, MT5, and TradingView—and offers trading tools including code-free algorithmic trading and an AI-powered economic calendar. These factors make Eightcap one of the best Forex brokers in Canada. Although Eightcap is not regulated in Canada, Canadian residents looking for a broker with competitive pricing, sophisticated trading tools, and access to a wide range of instruments across the major asset classes will have reason to closely consider opening an account with this broker.
Pros & Cons
- Regulated by tier 1 regulators.
- Tight raw spreads from 0 pips + competitive commissions.
- Over 800 CFDs offered across a range of asset classes.
- Offers the three most popular trading platforms.
- Not regulated by CIRO.
Friedberg Direct
In Summary Competitive spreads + deposit insurance up to 1 million CADFriedberg 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 & Cons
- Very Competitive Spreads
- Deposit Protection
- No Bonuses
- No Education Offering
How Do I Choose the Right Forex Broker in Canada?
Each Forex trader has their own requirements and preferences, which will determine who is the best Forex broker in Canada to meet their needs.
Traders should ensure their Forex broker in Canada offers the following:
- Trading Fees – Spreads and commissions directly impact the profitability of each strategy. A competitive cost structure features Raw spread accounts with near-zero spreads and a commission under $7 per lot, plus a volume-based rebate program. Alternatively, commission-free alternatives should have minimum spreads of 0.7 pips or less. Traders who keep leveraged overnight positions should ensure reasonable swap rates. If all rates are always negative, that is not a positive sign about that broker.
- Regulation - Canadian Forex traders are not legally required to trade with a broker regulated by the Canadian Investment Regulatory Organization of Canada (CIRO). Some offshore Forex brokers are prepared to accept Canadian-resident Forex traders, although it is worth closely investigating these brokers to ensure they are legitimate and have adequate reputations. There also may be difficulties in tax reporting. Using a Canadian-regulated broker can be helpful, especially as CIRO-regulated brokers participate in the Canadian Investor Protection Fund (CIPF), which covers depositors up to $1,000,000 Canadian per eligible account, should a Forex broker fail.
- Trust - Traders should trade with a well-regulated broker that has a spotless track-record spanning several years to ensure a time-tested trustworthy trading environment.
- Account Types - Many Canadian Forex brokers have simplified their account types with the most notable difference between competitively priced commission-based account types and more expensive commission-free alternatives, with few exceptions.
- Canadian Dollar Denominated Accounts – This may not be necessary for all traders, but if you plan on making periodic withdrawals and deposits, it could make life easier and save on currency conversion fees to open a Canadian Dollar account.
- Security - Secure Forex brokers encrypt communications between traders and themselves, including the back office for deposits and withdrawals and the trading platform, where traders manage portfolios. 2FA will increase the security features, especially for mobile traders, and the best Forex brokers in Canada have cyber security teams monitoring traffic 24/7.
- Instruments - A well-balanced asset selection offers- trading and diversification opportunities, but the requirements for each trader differ. Therefore, I recommend checking the broker’s asset selection to ensure the required trading instruments are available.
- Customer Support - Most brokers offer 24/5 customer support, but traders should check with their broker about office operating hours, contact methods, and response times. Phone support is often overlooked as a support method, but is the best option should an emergency arise.
- Non-Trading Fees - Besides trading fees noted above, quality brokers will have no additional or hidden costs. Traders should avoid brokers with non-trading fees, like deposit and withdrawal fees. Other fees to avoid are platform and data fees, administrative fees, and inactivity fees applicable after three months of dormancy.
- Deposits & Withdrawals - Canadian Forex traders should ensure their broker has no internal transaction fees and low minimum requirements with a choice of e-wallets and preferably cryptocurrency deposits and withdrawals.
- Demo - Beginners and seasoned traders require demo accounts without expiration. Beginners can test a broker’s trading environment and incorporate educational lessons with a demo. More seasoned traders will use it to test and tweak strategies, algorithmic traders will bug-fix and test solutions and copy traders can use it to evaluate signal providers.
How Do I Start Trading Forex in Canada?
Forex traders resident in Canada should start with in-depth education, which provides the foundation for successful trading. Education should cover the basic functions of trading. Examine what works and why. Ignore frauds promising easy millions.
Understanding the impact of trading psychology on market decision-making and deploying strategies to overcome this hurdle is one of the most notable challenges faced by many, at the start of their trading journey. You need a good mental approach to trading to become a good trader, but you need more than psychology – you need to learn what kind of setups tend to work best in your preferred style of trading. Learning is important but practise and experience are even more important.
Beginners can use demo accounts to test strategies and evaluate brokers, signal providers and algorithmic trading solutions. However, it is important to remember that risking real money in a live account feels different to paper trading.
Here are tips for when you feel comfortable beginning trading with real money:
- An ideal Forex brokerage solution for a Canadian resident is a CIRO-regulated broker.
- Respect Forex trading as a high-skilled profession.
- Have realistic profit expectations concerning your account size.
- Diversify your trading across asset classes to maximise the chance of trading profitably.
- For the safest trading, strongly consider using a Canadian-regulated broker, which can ensure your account is protected, withup to $1 million Canadian by the Canadian Investor Protection Fund (CIPF).
- Beginner traders should start exploring a trading strategy that has stood the test of time, like a momentum or trend following strategy, or the MACD Crossover Strategy or a Fibonacci Retracement Strategy, before developing their own strategies.
- Understand leverage and use appropriate risk management. Do not use too much leverage.
- Make sure you have a professional, quiet space for your trading desk, free from unnecessary distractions.
- Take a deep breath - avoid emotional decision-making.
- Explore the importance of algorithmic trading.
- Accept you will have losing trades.
Forex Regulation in Canada
The Canadian Investment Regulatory Organization (CIRO) regulates Forex trading in Canada. Established on January 1st, 2023, through the combination of the Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA). The CIRO is a non-profit, national self-regulatory organization (SRO), like the IIROC and MFDA.
About CIRO (previously known as IIROC)
The Canadian Investment Regulatory Organization (CIRO) is the Canadian self-regulatory body overseeing investment dealers and trading activity in Canada, which includes retail Forex brokerages. CIRO is responsible for creating and enforcing rules to protect investors and ensure fair and transparent markets. Forex brokers regulated by CIRO are required to:
- Adhere to strict capital requirements
- Practise high compliance standards
- Offer clients segregated accounts and dispute resolution options
Only CIRO regulated brokers are legally authorised to solicit Canadian residents as clients.
CIRO is widely considered to be a tier 1 regulator offering broker clients a high level of protection.
How to Verify CIRO Regulation
Here are the steps you can take to determine whether a particular broker is regulated by CIRO in Canada:
- Check CIRO’s website and visit the “Dealer Member Directory” or the Advisor Report tool. Enter the broker’s name to see if it is listed as a regulated entity. Note – sometimes brokers are listed under their legal names and not brand names, so it is a good idea to check the small print at the bottom of their website and try both if the brand name isn’t there.
- Check the broker’s site under About Us, Regulation, or just at the bottom of the home page. If they are regulated by CIRO, they will certainly state it on their website somewhere if you are using a Canadian IP address. If there is nothing there about CIRO, they are not likely to be regulated by CIRO.
- If you have any doubts, contact CIRO directly for clarification.
Canadian Investor Protection Fund (CIPF)
A major advantage of CIRO regulation is the automatic protection by the Canadian Investor Protection Fund (CIPF), which safeguards clients if a member brokerage goes bankrupt. The CIPF covers the return of a client’s cash and securities (including Forex-related positions held through a CIRO member), up to $1 million Canadian, ensuring traders won’t have their accounts wiped out just because their broker goes bust. This protection can bring peace of mind and will be challenging for most offshore brokers to match.
Provincial Regulation in Canada
In Canada, Forex regulation is split between federal oversight (CIRO) and provincial securities commissions. Each province makes its own rules, meaning Canadians face different practical regulatory situations depending upon which Canadian province they live in. Let’s take it province by province:
1. Ontario
- Oversight: Ontario Securities Commission (OSC).
- Ontario has some of the strictest rules in Canada.
- Many brokers not regulated in Canada will not accept Ontario residents, because the OSC enforces very aggressively.
- Only registered CIRO-regulated brokers may legally operate in Ontario.
2. Alberta
- Oversight: Alberta Securities Commission (ASC).
- Alberta requires that brokers be registered with CIRO to serve clients.
- Enforcement is notably relaxed compared to in Ontario, so most offshore brokers accepting Canadian residents are OK with Albertan residence.
3. Other Provinces & Territories
- Quebec: Supervised by the Autorité des marchés financiers (AMF), very strict enforcement, like Ontario.
- British Columbia: Overseen by the BC Securities Commission (BCSC). Enforcement against unregistered brokers is active but less so than in Ontario or Quebec.
- Smaller provinces/territories (e.g., Saskatchewan, Nova Scotia) generally will not aggressively pursue non-CIRO regulated offshore brokers.
What Do You Need to Qualify to be Designated as a Professional Trader in Canada?
Unlike many other countries, the concept of a “professional trader” who can be subjected to lighter regulation is unknown in Canada.
Canada does recognise a status called “accredited investor” which enables access to more sophisticated investment products such as private placements. However, it does not change the trading rules or leverage limits that you are subject to in Canada.
The criteria for becoming a recognised accredited investor in Canada include:
- Annual income of $200,000 CAD (or $300,000 with a spouse) for the past 2 years.
- Net financial assets of at least $1 million CAD (excluding real estate).
- Net assets of $5 million CAD in total.
- Institutional or professional recognition (e.g., registered advisors, portfolio managers).
Do Canadian Brokers Provide Negative Balance Protection?
Surprisingly, even Canadian-regulated brokers covered by CIRO are not required to offer negative balance protection, where a broker client knows they could never be responsible for covering losses greater than the funds they deposited.
So, most brokers regulated in Canada do not offer this feature.
It is important to note that without the use of leverage, it is functionally almost impossible to generate a negative balance at a Forex broker. So, if you use no or low leverage, especially if paired with a hard stop loss, you can practically protect yourself from a negative balance anyway.
Are My Funds Safe with Forex Brokers in Canada?
If you use a CIRO-regulated Canadian Forex broker, yes, your funds are relatively safe, for these reasons:
- CIRO enforces strict rules on capital adequacy, risk management, and client protection.
- CIRO requires brokers to segregate client accounts.
- The Canadian Investor Protection Fund (CIPF) protects traders against losses of up to $1 million Canadian per eligible account, if caused by broker bankruptcy.
- Leverage limits imposed by CIRO can help prevent catastrophic losses.
How Does the Available Leverage of Canadian CIRO-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?
Like other major regulators, CIRO enforces strict leverage limits by asset class.
Comparison to “offshore” brokers is difficult, as this category can range from broker regulated in other tier 1 jurisdictions such as the European Union, the USA, or the UK, all of which impose very similar leverage limits to CIRO in Canada.
So, I will use the typical leverage offered by true “offshore” brokers, meaning brokers regulated in traditional offshore financial centres such as the Seychelles, Mauritius, the BVI, Vanuatu etc.
The below table compares the Canadian leverage caps by asset class with the typical rates offered by a “true” offshore Forex broker.
Forex Majors | Forex Minors | Commodities / Indices | Cryptocurrencies | |
CIRO Canadian Regulated Broker | 1:30 | 1:20 | 1:10 / 1:20 | Not offered or extremely restricted |
Typical Offshore Broker | 1:200 / 1:1000 | 1:100 | 1:20 / 1:100 | |
Is Forex Legal in Canada?
Forex trading is completely legal in Canada.
If you are a Canadian taxpayer and you don’t tell the Canada Revenue Agency about your trading profits, that could be a criminal offence.
It is against Canadian law for brokers not regulated by the Canadian regulator CIRO to solicit Canadian-resident traders. However, in these cases, criminal penalties apply only to the broker, not the trader.
Do you pay tax on Forex trading in Canada?
Yes, Canadian residents are subject to tax on their Forex trading profits in Canada. Canadian tax law will either tax such profit as Capital Gains or as Income Tax. You will pay twice as much tax on profits taxed as income tax as you will on profits taxed as capital gains. The Canada Revenue Agency will decide how to tax you based on whether they see you as a hobbyist (capital gains) or as someone who trades for a job or business (income tax).
