As the number of available forex broker services continues to grow, it becomes increasingly important to identify the top broker for Forex Trading in Canada. In this article, you'll find a comprehensive evaluation of Canadian forex brokers, considering factors such as platform tools, currency pairs, and trading fees. Keep reading to discover which Forex broker aligns with your specific trading requirements.
Explore our guide to identify the leading FX brokers offering the most competitive spreads..
Top Forex Trading Platforms in Canada for 2023
Listed below are the top 10 Forex trading platforms in Canada , assessed based on their platform tools, trading fees, and available currency pairs.
- FP Markets – The Ultimate Forex Broker Overall
- Interactive Brokers – Premier Forex Broker with Market Access in Canada
- AvaTrade – Leading Forex Trading Platform in Canada
- Forex.com – Outstanding Mobile App for Forex Trading in Canada
- IG – – Top Forex Trading Platform in Canada for Research
- CMC Markets – Excellent Forex Broker in Canada with Low Fees
- AXI – Prime Choice for Forex Broker with Tight Spreads in Canada
- FXCC – Unmatched Execution on Forex Trading Platform in Canada
- BD Swiss – A Solid Option for Forex Brokerage in Canada
- HYCM – Economical Forex Fees Platform in Canada
Best Overall
PFI Rating 4.9
Runner Up
PFI Rating 4.9
Best Trading App
PFI Rating 4.9
In-Depth Examination of Forex Trading Platforms in Canada
Below, we provide a comprehensive breakdown of each forex broker, taking into account a range of crucial factors to assist you in making an informed choice.
PFI Rating: 4.9/5
FP Markets – Premier Forex Broker in Canada
Our top choice for forex trading in Canada is FP Markets. Established in 2005, FP Markets operates under the regulation of leading authorities.
FP Markets stands out with its exceptionally low forex trading fees, extensive educational materials, and an impressive trading platform. What truly distinguishes FP Markets is their rapid order execution and absence of requotes, ensuring a seamless trading experience with spreads as narrow as 0.0 pips.
The minimum deposit requirement is a modest $100.
They provide access to a diverse range of over 10,000 products across global markets, including CFD trading options for Forex, Stocks, Commodities, Cryptocurrencies, and Indices.
On FP Markets' Official Website
PFI Rating: 4.9/5
Interactive Brokers – Premier Market Access Forex Broker in Canada
Interactive Brokers presents Canadians with cost-effective trading fees and a suite of high-quality trading platform features.
The broker's IB SmartRouting technology ensures swift order execution, positioning it as a top choice for active forex traders.
However, it's worth noting that this broker's platform tools may pose a challenge for beginners. Individuals with limited Forex trading experience might find more user-friendly alternatives more suitable for their needs.
On Interactive Brokers' Official Website
PFI Rating: 4.9/5
AvaTrade – Top Forex Trading App for Canada
Being one of the early entrants in the forex brokerage industry, AvaTrade has established a strong track record over time. Canadian traders can benefit from a diverse selection of 55 Forex currency pairs.
Clients appreciate the absence of withdrawal and deposit fees. AvaTrade stands out with its efficient and straightforward account opening procedure. It also provides access to high-quality research materials and user-friendly educational resources.
However, it's important to note that AvaTrade, like many other brokers, imposes inactivity fees, which could be a drawback for some traders.
On AvaTrade Official Website
PFI Rating: 4.8/5
Forex.com – Ideal for High-Volume Forex Traders
Forex.com stands as a well-established choice for forex trading services catering to Canadians.
While its desktop platform could be improved, it does support the MT4 trading platform, providing access to an impressive array of over 70 technical indicators and 50 drawing tools.
Forex.com extends trading options across a diverse range of assets, including Shares, Indices, Forex, Commodities, Gold and Silver, and Cryptocurrencies.
A minimum deposit of $100 is required. Forex.com does apply various fees and commissions, as well as overnight financing costs, and it is noteworthy that they have an inactivity fee.
On the positive side, Forex.com offers competitive fees for forex trading and does not charge withdrawal fees. Nevertheless, the presence of an inactivity fee should be taken into consideration.
On Forex.com Official Website
IG – Suited for Novice Traders with Intuitive Mobile and Desktop Platforms
IG caters to beginner traders with its easily navigable mobile and desktop platforms. Simultaneously, experienced traders can benefit from an extensive selection of indicators and charting tools.
However, it's worth noting that IG's account opening process can be relatively sluggish. Additionally, the broker imposes high fees for forex trading and sets a relatively high minimum account deposit requirement.
| PROS | CONS |
|---|---|
| User-friendly platforms suitable for beginners | Sluggish account opening process |
| A trusted broker with a well-established reputation | Elevated fees for forex trading |
| Rich assortment of research and educational tools | High minimum account deposit requirement |
| Excellent web and mobile platforms |
Markets Overview:
CMC Markets provides Canadian traders with cost-effective forex trading fees and a flexible mobile trading app platform.
Their trading platforms offer easy customization, boasting unique features like an advanced order panel. Furthermore, they offer a wide array of research materials and educational resources.
Deposits and withdrawals are generally free, except for international and same-day withdrawals.
However, it's important to note that the account verification process can be both time-consuming and intricate, which may present challenges for some users.
| PROS | CONS |
|---|---|
| Competitive forex fees | Complex and time-consuming account verification process |
| Versatile web and mobile platforms | |
| Advanced research and educational resources | |
| A wide range of trading tools |
Axi Overview:
Axi stands as another excellent brokerage service, suitable for both novice and seasoned Canadian traders.
The platform offers cost-effective forex fees and does not impose inactivity fees. Additionally, deposits and withdrawals come without any charges, which is a notable advantage. The account opening process is streamlined and entirely digital for user convenience.
However, it's worth noting that Axi lacks 24/7 customer support, and there are some limitations in terms of research options available on the trading platforms.
| PROS | CONS |
|---|---|
| Competitive trading fees | Limited research tools |
| Absence of inactivity fees | Customer service available only during 24/5 hours |
| No charges for deposits or withdrawals |
FXCC Overview:
FXCC provides Canadian traders with a high-quality brokerage service. The standard account offers access to 30 currency pairs, while advanced accounts expand the options to 56 pairs. FXCC distinguishes itself with competitive spreads when compared to its peers.
Traders benefit from the advanced MetaTrader4 platform, known for its user-friendly interface and a variety of valuable trading tools. FXCC's iTrader mobile app facilitates trading for Canadians on their iPads and iPhones.
However, it's important to note that FXCC presents a limited range of withdrawal options, which may be a drawback for some users.
| PROS | CONS |
|---|---|
| Diverse array of currency pairs available | Limited choice of withdrawal options |
| Competitive and narrow spreads | |
| Low minimum account deposit requirement | |
| Access to a sophisticated trading platform |
BD Swiss Overview:
BD Swiss extends to Canadian traders access to a variety of trading platforms, including its proprietary BDSwiss Web Trader and BDSwiss Mobile App. Users can take advantage of its AutoChartist feature and receive live trading alerts via Telegram.
The broker provides a wealth of high-quality educational resources and hosts events designed to benefit both novice and experienced day traders.
However, it's worth noting that to access the most favorable spread accounts, traders will be required to make higher minimum deposits, which could be a drawback for some.
| PROS | CONS |
|---|---|
| Availability of raw spreads | Higher minimum deposits are needed for the best spread accounts |
| Offering both MetaTrader 4 and MetaTrader 5 trading platforms | |
| Access to advanced charting tools | |
| Abundant and valuable educational resources |
HYCM Overview:
HYCM presents itself as an alternative choice for Canadians. The company boasts competitive forex fees and an extensive array of educational resources.
However, it's important to note that HYCM's trading platforms are considered outdated, which may not align with the expectations of advanced traders seeking a more premium platform experience. Additionally, there is a monthly inactivity fee applied after 90 days of inactivity, which could be a concern for some users.
| PROS | CONS |
|---|---|
| Competitive forex fees | Elevated inactivity fee |
| Abundance of valuable educational content | Outdated design of trading platforms |
| Convenient and user-friendly account opening process |
How Are Forex Brokers Regulated in Canada?
All reputable and secure Canadian forex brokers are licensed and overseen by the Investment Industry Regulatory Organization of Canada (IIROC). Additionally, each province in Canada has its own local regulatory authority.
In accordance with rule 100.2(d), forex trading in Canada is subject to leverage and margin restrictions, limiting it to a maximum of 50:1. This means you can take a position worth $50 with just $1 in margin.
In Canada, forex profits are typically treated as capital gains for tax purposes. This entails that 50% of your profit is subject to taxation. You are only required to report your annual net gain or loss if it exceeds $200. Keep in mind that tax laws can change over time.
How to Start Trading Forex in Canada?
To begin trading forex in Canada, follow these steps:
- Ensure you have access to a stable internet connection through a desktop or device.
- Select a forex broker that accepts clients from Canada and aligns with your trading preferences.
- Open a forex trading account with your chosen broker.
- Deposit funds into your forex account using the payment methods supported by your broker.
How to Choose a Forex Broker as a Canadian
When selecting a forex broker in Canada, consider the following factors:
Regulation
Ensure the broker is registered with at least one financial regulatory body. Canadian forex brokers must adhere to the rules set by the IIROC.
Account Security
Prioritize brokers that prioritize account security to safeguard your forex account from cyber threats.
Currency Pairs Offered
Choose a broker that offers a wide selection of currency pairs, including those with CAD as the quoted currency.
Fees & Commission
Understand all the fees charged by your broker, including commission fees and trading fees.
Rollover Interest
Familiarize yourself with rollover interest, which is the difference in interest rates between two traded currencies.
Trading Platforms Supported
Opt for a broker that provides access to versatile and user-friendly trading platforms.
Leverage and Margin
Consider the broker's leverage and margin policies, as these can impact your trading strategy.
Account Types
Different brokers offer various types of accounts, each with its own fee structure and minimum deposit requirements. Choose one that aligns with your trading needs.
Demo Account Available
Look for brokers that offer demo accounts, which are helpful for practice and learning.
Deposit Methods
Ensure the broker supports deposit methods that are convenient for you.
Base Currency and the CAD:
Check if the broker offers currency pairs with CAD as the quoted currency.
Order Types
Verify that the broker covers essential forex order types, such as market orders, pending orders, limit orders, stop orders, stop-loss orders, and trailing stop orders.
Mobile Trading
If you need to trade on the go, choose a broker with a mobile trading platform.
Type of Brokers
Understand the difference between Market Makers, Straight Through Processing (STP), and Electronic Communication Network (ECN) brokers.
Education and Research Available
Look for brokers that offer educational resources and access to comprehensive market research.
A good online broker should provide a variety of market research. You must be aware of the growth prospects of a currency before investing in it. Access to thorough records of currencies will showcase its earnings and performance on the market.
Trading tools Available
Consider whether the broker provides essential trading tools like charting tools, analyst ratings, and price alerts.
Customer Service
Select a broker with responsive and accessible customer support, ideally available 24/7.
Execution Speeds
Fast order execution speed is crucial, particularly for day traders.
Hedging and Scalping
Understand the broker's policies on hedging and scalping strategies.
FAQ
Is Forex Trading Legal in Canada?
Yes, forex trading is legal in Canada. However, it lacks a national regulatory body, and regulations vary by province.
How Much Do I Need To Start Trading Forex?
Many brokers allow you to start with as little as $10, but a more substantial starting capital of around $100 is recommended for a solid start.
How Much Do Forex Traders Make a Day?
Profits in forex trading vary widely and depend on factors like capital, risk, and trading strategy. Some traders may earn 1% daily, while others may achieve 100% or more. It's crucial to manage risk wisely.
Do Forex Traders Pay Tax In Canada?
Yes, Canadian forex traders are subject to taxation. Forex profits are often treated as capital gains and taxed accordingly.
What Is The Percentage Of Tax On Forex In Canada?
In Canada, forex profits are typically considered capital gains, with 50% of the profit subject to taxation. Reporting requirements may apply if your net gain or loss for the year exceeds $200, but tax laws can change, so it's advisable to consult with a financial expert for the latest information.
Article Sources:
- Investment Industry Regulatory Organization of Canada. “Rule 100, https://www.iiroc.ca/RuleBook/MemberRules/Rule00100_en.pdf” Accessed May 19,2021.
