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. Our team of analysts and experts have searched and found the best Forex brokers in Canada.
Top Forex Brokers & Trading Platforms in Canada at a Glance
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- Friedberg Direct, Competitive spreads + deposit insurance up to 1 million CAD.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- DNA Markets, Super asset selection for Forex and cryptocurrency traders.
Canadian Brokers Comparison
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Regulators | ASIC, CySEC, FSCA | ASIC, CySEC, FCA, SCB | IIROC | FMA, FSA | ASIC |
Year Established | 2005 | 2009 | 1971 | 2014 | 2023 |
Execution Type(s) | ECN/STP | ECN/STP, Market Maker | ECN/STP, No Dealing Desk | ECN/STP, No Dealing Desk | ECN/STP, Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 1.1 pips | 1.0 pips | N/A | 1.3 pips | 1.1 pips ($11.00) |
Average Trading Cost GBP/USD | 1.4 pips | 1.2 pips | N/A | 2.0 pips | 1.3 pips ($13.00) |
Average Trading Cost Gold | $0.21 | $0.12 | N/A | $0.90 | $0.12 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5 |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
FP Markets
In Summary ECN trading with leverage up to 1:500FPMarkets 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 & Cons
- 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
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosThe bulk of Canadian retail Forex trading volume occurs via international brokers, but many have restrictions on accepting Canadian-resident clients. Eightcap onboards Forex traders from Canada via Eightcap International, a subsidiary in St. Vincent and the Grenadines, operated by CLMarkets Limited (registration number 24750). It allows Canadian Forex traders to manage portfolios in a competitive environment, including higher leverage versus Canadian-based brokers and lower trading fees.
Eightcap International features MT4, MT5, Capitalise AI, Crypto Crusher, and TradingView. Algorithmic traders can qualify for free VPS hosting, and beginners get quality research and education, making Eightcap an excellent choice for Canadian-resident Forex traders.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
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
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets has been serving Canadian traders since it was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. BlackBull Markets is a cosmopolitan broker, with additional branch offices in New York and Malaysia, a factor many Canadians appreciate. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for Canadian traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
DNA Markets
In Summary Super asset selection for Forex and cryptocurrency tradersTraders can use EAs on MT4/MT5, and DNA Markets ensures fast order execution. The commission-based trading account provides demanding traders with a competitive cost structure with spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot. The trading environment earned DNA Markets a spot on my best Forex broker in Canada listing.
DNA Markets also maintains a competitive copy trading environment. Traders can use the embedded MT4/MT5 services or diversify via the fee-based Signal Start, which DNA Markets promotes by paying for the first three months. A partnership program caters to passive income seekers.
Pros & Cons
- Competitive, commission-based trading fees
- Choice of payment processors, including cryptocurrencies
- Excellent choice of Forex and cryptocurrency pairs
- MT4/MT5 trading platforms for algorithmic and copy trading
- Limited commodity asset selection and no ETF trading
5 Tips for Choosing Reliable Canadian Forex Brokers & Trading PLatform
Choose a Forex broker in Canada that is regulated by the Investment Industry Regulatory Organization of Canada, or IIROC.
Choose a Forex broker in Canada that also gives you the best Forex trading platform in Canada for your needs.
Find a Forex broker with good execution speeds to make certain you get the best prices when executing your trades.
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?
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.
Is Forex Trading Legal in Canada?
Forex trading is legal in Canada. Forex brokers and service members must have a membership with the Investment Industry Regulatory Organization of Canada (IIROC) and a regulatory license from any of the ten provincial regulators, which creates varying regulatory environments within Canada. It is unique compared to other countries, as IIROC membership is a requirement, but each of the ten provinces regulates Forex traders residing within their jurisdiction. It is one reason many international Forex brokers choose not to operate in Canada. The compliance fees to ensure a broker complies with the ten districts and the potential number of clients makes Canada unattractive for offshore brokers.
The IIROC and provincial regulators classify Forex as a security or derivative. The Canadian Investor Protection Fund (CIPF) offers protection of up to C$1,000,000 per taxable account, plus an additional C$1M per RRSP/RRIF account and RESP account for total coverage of C$3M.
Forex Trading in Canada - Regulations & More
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.
Verifying 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.
Differences in Trading Rules for Canadian & American Brokers & Trading Platforms
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.
How Do I Start Trading Forex in Canada?
Forex traders in Canada should start with in-depth education, which provides the foundation for successful Forex trading. Understanding the impact of psychology on trading and deploying strategies to overcome this challenge is one of the biggest barriers to success in trading and for many takes a long time to accomplish.
Here are tips once Forex traders in Canada feel comfortable approaching live trading:
- Respect Forex trading as the high-skilled profession it is.
- Have realistic profit expectations concerning your account size.
- Understand leverage and use proper risk management.
- Trade from a quiet place
- Avoid emotional decision making.
- Explore the importance of algorithmic trading.
How Do You Trade the Canadian Dollar?
The Canadian Dollar is a commodity currency, as Canada relies heavily on the oil sector and other hard commodities and precious metals. Some Canadian Sollar strategies exploit the relationship between global net oil exporters, like Canada, and oil importers, like Japan. They therefore trade the CAD/JPY pair, but Forex traders should keep an open mind and explore all possibilities since the US Dollar is the default oil quote currency.
Technical analysis forms the basis for most Forex traders, and the most profitable ones rely on algorithmic trading. MT4 is the leading algorithmic trading platform, and it is available in Canada.
Bottom Line
Forex trading in Canada is legal but presents a fractured and challenging regulatory environment, as each of the ten provinces regulates Forex individually, and all brokers must be IIROC members. Most offshore brokers avoid Canada due to its uneven regulatory approach. The Canadian Forex market has a restrictive regulatory environment but offers the highest investor compensation fund, with maximum coverage of up to C$3,000,000 per individual.
A few well-known and highly trusted Forex brokers cater to Forex traders from Canada, where traders have few restrictions on which strategies that can be deployed, but do lack access to some competitive trading tools available elsewhere.
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