Best Forex Brokers in Canada for 2024(Top 10 Regulated)

　　There is no doubt that the forex market is the most widely traded market in the world. Every day, $5.3 trillion is spent on buying and selling foreign exchange, with only 8 major currencies and 7 currency pairs constituting 80% of the entire market. Among those currencies is the Canadian dollar, also known as the “loonie”. In recent years, forex trading has gained much popularity in Canada. Today, Canadian traders can trade through multiple online brokers and platforms.

　　For any forex broker legally operating in Canada to accept forex or CFD traders as clients, it must become authorized by the Investment Industry Regulatory Organization of Canada (IIROC), the country's major financial regulatory agency. As long as the right criteria and approach are followed, the diversity of services can become more of an advantage, rather than a challenge. In the following list, we compile the Best Canada Forex Brokers list for 2024 for your information.

Top 9 Best Forex Brokers in Canada

A vast selection of financial instrments available with cheap commission rates.

Advanced market analysis tools, highly customizable trading platform.

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Includes original research together with material from other sources, such as BK Crypto Crusher.

Superior administrative experience and technological foundation.

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Providing an NDD trading environment with easy digital account opening.

Options to diversify across asset classes and a large pool of assets to choose from.

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Comparison of the Best Forex Brokers in Canada

Forex Broker

License

Minimum Spread

Maximum Leverage

Minimum Deposit

Open account

Details

Compare

8.20

Regulatory blacklist

0.1

1:400

7.89

Regulated

0.0

1:400

$100

8.30

Regulated

0.9

1:400

$100

8.00

Regulated

0.5

1:30

8.46

Domestic Regulation

0.0

1:500

$100

8.88

Regulated

0.0

1:500

$100

7.95

Regulated

0.0

1:500

$200

9.10

Regulated

0.0

1:500

$200

7.48

Regulated

0.0

1:500

$100

Open account

Details

+ Compare

9 Best Forex Brokers in Cananda Overall

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	INTERACTIVE BROKERS AUSTRALIA PTY LTD	Market Making(MM)	453554
	FCA	Interactive Brokers (UK) Ltd	Market Making(MM)	208159
	FSA	インタラクティブ・ブローカーズ証券株式会社	Retail Forex License	関東財務局長（金商）第187号
	SFC	Interactive Brokers Hong Kong Limited 盈透證券香港有限公司	Dealing in futures contracts & Leveraged foreign exchange trading	ADI249

　　Interactive Brokers is a reputable brokerage firm based in the United States. Established in 1978 by Thomas Peterffy, it has expanded its reach to become a prominent player in the online brokerage industry. It provides a diverse array of financial products and trading platforms to cater to the needs of individual and institutional investors worldwide. Interactive Brokers is renowned for its cutting-edge technology and highly competitive pricing, which has made it a favoured option among traders and investors across the globe.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	EIGHTCAP PTY LTD	Market Making(MM)	391441
	FCA	Eightcap Group Ltd	Straight Through Processing(STP)	921296
	SCB	Eightcap Global Limited	Retail Forex License	SIA-F220

　　Eightcap is an online brokerage firm that was established in 2009. Headquartered in Melbourne, Australia, this company offers access to a wide range of financial markets, such as forex, stocks, indices, commodities, and cryptocurrencies. The company provides trading services to clients globally, with a particular emphasis on retail traders and investors.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	AVA CAPITAL MARKETS AUSTRALIA PTY LTD	Market Making(MM)	406684
	FSA	Ava Trade Japan K.K	Retail Forex License	関東財務局長（金商）第1662号
	FFAJ	AVA TRADE JAPAN K.K.	Retail Forex License	1574
	CBI	AVA Trade EU Limited	Retail Forex License	C53877
	FSCA	AVA CAPITAL MARKETS (PTY) LTD	Retail Forex License	45984
	FCA	AVA Trade EU Limited	European Authorized Representative (EEA)	504072

　　AvaTrade is an international forex and CFD brokerage that was founded in 2006 in Dublin, Ireland. Regulated by the Central Bank of Ireland and licensed by financial regulators across Europe, Japan, South Africa, and Australia, AvaTrade provides retail traders, institutions, and fund managers access to trading instruments spanning forex, cryptocurrencies, bonds, commodities, indices, stocks, and ETFs. AvaTrade stands out for its comprehensive educational resources, multilingual customer support, and array of trading platforms including the popular MetaTrader 4 and AvaTradeGO. Traders can choose between floating or fixed spreads and leverage up to 1:400. AvaTrade also offers automated trading through Expert Advisors on the MetaTrader 4 platform. With its focus on trust, innovation, and empowering traders, AvaTrade has grown rapidly over the past 15+ years to serve over 200,000 accounts globally.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	FCA	CMC Markets UK plc	Market Making(MM)	173730
	FCA	CMC Spreadbet Plc	Market Making(MM)	170627
	FMA	CMC MARKETS NZ LIMITED	Market Making(MM)	41187
	IIROC	CMC Markets Canada Inc.	Market Making(MM)	Unreleased
	MAS	CMC MARKETS SINGAPORE PTE LTD	Retail Forex License	Unreleased

　　CMC Markets is a brokerage firm established in 1989 and based in Australia. The company provides online trading services for a wide range of financial instruments, such as forex, commodities, and indices. CMC Markets is known for its user-friendly trading platforms and is regulated by financial authorities in multiple countries, making it a popular choice for retail traders and investors.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	STONEX FINANCIAL PTY LTD	Market Making(MM)	345646
	FCA	Gain Capital UK Limited	Market Making(MM)	113942
	FSA	GAIN Capital Japan Co., Ltd	Retail Forex License	関東財務局長（金商）第291号
	NFA	GAIN CAPITAL GROUP LLC	Market Making(MM)	0339826
	IIROC	GAIN Capital - FOREX.com Canada Ltd.	Market Making(MM)	Unreleased
	CIMA	GAIN Global Markets, Inc	Market Making(MM)	25033
	MAS	STONEX FINANCIAL PTE. LTD.	Retail Forex License	Unreleased

　　FOREX.com is a reputable online forex and CFD broker based in the United States. Established in 2001, it has built a strong reputation in the industry. This broker offers a diverse selection of trading instruments, such as forex, commodities, and indices, to meet the needs of both individual and institutional traders. One of the standout features of this platform is its user-friendly and versatile trading interface. Traders can choose between the popular MetaTrader 4 (MT4) platform or the proprietary web-based platform. Both options offer a robust and intuitive experience for executing trades and managing portfolios.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	FIRST PRUDENTIAL MARKETS PTY LTD	Market Making(MM)	286354
	CYSEC	First Prudential Markets Ltd	Straight Through Processing(STP)	371/18

　　FP Markets, an Australian forex and CFD broker, was established in 2005. Based in Sydney, FP Markets is regulated by the Australian Securities and Investments Commision (ASIC) and holds an Australian Financial Services Licence. Throughout its extensive history of more than 15 years, FP Markets has established itself as a trusted name in the industry, known for its highly competitive pricing, lightning-fast execution speeds, and top-notch trading platforms such as MetaTrader 4, MetaTrader 5, and Iress. FP Markets provides a wide range of trading options, including forex trading on over 60 currency pairs and CFDs across various assets such as indices, commodities, shares, and cryptocurrencies. Traders have the option to select between raw spread accounts that offer access to deep liquidity or ECN accounts that provide tight variable spreads. FP Markets welcomes clients from around the world and is renowned for its round-the-clock customer support in multiple languages.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	PEPPERSTONE GROUP LIMITED	Market Making(MM)	414530
	CYSEC	Pepperstone EU Limited	Market Making(MM)	388/20
	FCA	Pepperstone Limited	Straight Through Processing(STP)	684312
	SCB	Pepperstone Markets Limited	Retail Forex License	SIA-F217

　　Pepperstone, an online forex and CFD broker, was established in 2010 in Australia. The company is based in Melbourne, Australia, and has become a favoured option for traders around the globe. It provides access to a wide range of financial markets and trading instruments through its easy-to-use trading platforms. Pepperstone is renowned for its competitive pricing, tight spreads, and unwavering dedication to delivering a dependable trading environment for its clients.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	INTERNATIONAL CAPITAL MARKETS PTY. LTD.	Market Making(MM)	335692
	CYSEC	IC Markets (EU) Ltd	Market Making(MM)	362/18

　　IC Markets operates as an online forex and CFD broker, based in Australia. The company was established in 2007 and has its main office in Sydney, Australia. It is renowned for its diverse selection of trading instruments and competitive spreads, serving both individual and institutional traders worldwide. IC Markets is regulated by the Australian Securities and Investments Commission (ASIC) and is well-known for its transparent and high-speed trading environment.

Regulated Country	Regulated Authority	Regulated Entity	License Type	License Number
	ASIC	TRADEMAX AUSTRALIA LIMITED	Market Making(MM)	436416
	FMA	TRADEMAX GLOBAL MARKETS (NZ) LIMITED	Market Making(MM)	569807
	VFSC	Trademax Global Limited	Retail Forex License	40356

　　TMGM (TradeMax Group) is a renowned global online forex and CFD broker established in 2017. The company is based in the Republic of Vanuatu, a small island nation in the South Pacific, and it provides trading services to clients all around the globe. TMGM offers a diverse selection of financial instruments, such as forex, commodities, indices, and cryptocurrencies, accessible through its user-friendly online trading platform. TMGM strives to provide a contemporary and intuitive trading experience for investors in the financial markets.

Forex Trading Knowledge Questions and Answers

Is forex trading legal in Canada?

　　There are no restrictions on foreign exchange trading in Canada. The IIROC (Investment Industry Regulatory Organization of Canada) oversees the forex industry on a national scale. The local regulatory bodies are also taking steps to ensure the industry's safety. Be sure the broker is licensed by the IIROC before you start forex trading in Canada. To find confirmation of a broker's risk disclosure, look at the bottom of the broker's website. The IIROC also has a page entitled “Dealers We Regulate.” where you can search for a broker. Brokers without licenses from IIROC are subject to local regulation, which determines whether they will be allowed to operate in their area.

What is the impact of the Canadian economy on forex trading?

　　The state of the Canadian economy plays a key role in forex trading, influencing the value of the Canadian Dollar (CAD) against other currencies.Strong economic indicators such as high GDP growth, low unemployment, and sound fiscal balance, tend to boost CAD's value, driven by increased investor confidence and demand.

　　In these periods, investors seeking better returns are drawn towards the financially healthy economy, heightening demand and hence, the value of CAD.

　　Conversely, a weaker economy marked by recessions, high unemployment, low GDP growth or large trade deficits, may result in the devaluation of CAD. This is because these factors often lead to diminished investor confidence, resulting in a drop in currency demand and subsequent depreciation of the CAD on the forex market.

What are the most popular currency pairs to trade in Canada?

　　Among forex traders in Canada, certain currency pairs have risen to the top in terms of popularity and are frequently traded due to their unique attributes. These include the USD/CAD (US Dollar/Canadian Dollar), EUR/CAD (Euro/Canadian Dollar), and GBP/CAD (British Pound/Canadian Dollar).

　　The USD/CAD, often referred to as the “Loonie” in the trading vernacular, is a prime choice for many due to distinct factors. Given the close economic ties between the U.S. and Canada, this currency pair often responds to economic indicators and changes in commodity prices, particularly oil.

　　Similarly, the EUR/CAD and GBP/CAD are highly desired pairs for Canadian traders. These pairs become relevant due to the significant trade relations Canada maintains with both Europe and the UK respectively.

　　These pairs offer good liquidity, a term that refers to a market's capacity to facilitate the buying and selling of large volumes of assets without causing significant price fluctuation. High liquidity usually equates to low transaction costs (spreads), which is a desirable scenario for traders.

　　Moreover, these pairs also offer ample volatility. Volatility, while it comes with risks, often provides the price movements necessary for traders to make profits in the forex market. Therefore, the heightened volatility can provide opportunities for astute traders to capitalize on price differences.

What Is the maximum trading leverage in Canada?

　　In Canada, Forex traders are limited to leverage and margin levels of 50:1. Similarly, this is the same limit applied in the United States, while in Europe it is 30:1 for currency leverage.

　　If the margin rate is lower, the leverage ratio will also be higher. A margin rate of 2% would work out as a leverage ratio of 50:1, which would allow you to take a position of $50 with a margin of $1. For the same amount of capital, a 3% margin would overturn a leverage ratio of 33:1.

What are the best times to trade forex in Canada?

　　By aligning their activities with the times of highest market liquidity and volatility, Canadian traders can effectively optimise their trading strategies. Usually, these time periods coincide with the operating hours of the European and North American trading sessions.The European trading session starts at 7:00 AM Eastern Standard Time (EST) and ends around 1:00 PM EST. This session provides an overview of the financial activities in major European financial marketplaces, including London and Frankfurt, that greatly influence the forex market. Throughout this period, a variety of economic reports are published in the Eurozone, leading to fluctuations in currency prices and presenting potential trading opportunities. However, the North American session, which primarily mirrors the financial activities on the New York exchange, starts at 12:00 PM EST and concludes around 5:00 PM EST. This session is important because of the large number of financial transactions occurring, which further adds to the market's volatility and liquidity. It's worth noting that the period from 12:00 PM to 1:00 PM is quite intriguing because it coincides with the end of the European session. This often leads to increased volatility as there is a lot of trading happening at the same time.

Do Forex Traders Pay Taxes in Canada?

　　Yes, forex traders in Canada are required to pay tax on their earnings. The Canada Revenue Agency (CRA) considers money earned from currency trading as investment income, and it must be reported on the income tax return.

　　The specific tax that traders must pay can vary based on several factors including their marginal tax rate, whether they're trading part-time or full-time, and the nature of their trading activities.

　　For instance, if a trader is carrying out trading activities full-time, with frequency, sophistication, intention of trading and if this can be linked to a business, then the income could likely be taxed as business income. Alternatively, income from occasional trades can be considered capital gains.

　　In either case, it's highly recommended that traders consult with a tax professional or advisor to ensure that they are fulfilling their tax obligations accurately. This would help avoid potential penalties or complications with the CRA.

　　Again, it's important to keep track of trading activities and results accurately not only for trading performance review but also for tax purposes. Documentation detailing the date of transactions, which securities were bought or sold, and at what price, can come in handy during tax filing.

What Are Some of the Unique Challenges of Forex Trading in Canada?

　　Forex trading in Canada presents its own unique set of challenges stemming from various inherent factors.

　　One such challenge pertains to the relatively lower liquidity of the Canadian Dollar (CAD).In the context of forex markets, liquidity refers to the ease with which a currency can be bought or sold without causing a significant change in its market price. When a currency like the CAD exhibits lower liquidity, it essentially implies that the volume of buyers and sellers for the CAD in the forex market is not as high as you might observe for other major currencies such as the USD, GBP, or EUR. This reduced liquidity situation can then result in wider spreads, which refer to the difference between the prices at which a currency can be bought and sold. Wider spreads, in turn, can lead to higher transaction costs for the traders.

　　Additionally, low liquidity can give rise to increased volatility, or wide fluctuations in the exchange rates of the CAD against its peers. While volatility can create more trading opportunities, it also heightens the risks for traders, making risk management crucial.

　　Yet another idiosyncratic challenge that Canadian forex traders need to contend with is the potential government intervention in the forex market. The Bank of Canada (BOC), the country's central banking institution, occasionally intervenes in the market as a part of its monetary policy to either support or weaken the CAD. It generally does this to control inflation, stimulate economic growth, or stabilize the CAD.

　　Interventions like these can create unexpected market movements, making the trading environment more complex and the prediction of market trends more challenging. Particularly for those engaged in analytical and predictive trading strategies, this can add a layer of difficulty.

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