Canada has a vibrant Forex market with a complex regulatory environment that varies by territory. Retail prop trading continues to thrive, but not all retail prop firms offer competitive trading conditions that serve the best interest of traders or provide a genuine trading environment. How do you know you are dealing with one of the reputable Canadian prop firms? My in-depth review of prop trading in Canada highlights the pros and cons and offers a quick guide to choosing a Canadian prop trading account.
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4.8/5The 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.A maximum profit share of 90% & cryptocurrency withdrawalsSeven account base currencies & 1:100 maximum leverage 2 
4.6/5The 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.A maximum profit share of 95% & cryptocurrency withdrawalsEvaluation re-set and top-up even after breaking trading rules
- FTMO, the best prop trading firm with a genuine path for salaried prop traders.
- FundedNext, 15% profit share of the profits during the evaluation period.
FTMO
In Summary the best prop trading firm with a genuine path for salaried prop tradersProp traders can choose from four platforms and five funded accounts starting at $10,000 with an €89 evaluation fee and a maximum of $200,000 for €1,080. It also provides a clear path for successful traders to transition from retail to professional prop trading, with a contract and a fixed salary. Therefore, I rank FTMO among the best prop firms in Canada.
The two-step verification has a 10%-5% profit target, a maximum daily loss limit of 5% and a maximum drawdown of 10%. FTMO requires traders to trade for at least four days during the evaluation but allows EAs.
Pros & Cons
- Reasonable profit targets and generous maximum loss levels
- 80% to 90% profit share with a fast withdrawal process
- Customizable two-step evaluation period with free retrials where applicable
- MT4, MT5, and cTrader accounts with generous leverage
- No information about which broker or brokers FTMO uses
FundedNext
In Summary 15% profit share of the profits during the evaluation periodI rank FundedNext among the best prop firms in Canada, as it is the only prop firm I came across during my review that pays prospective prop traders a 15% profit share of the profits during the evaluation period. The FundedNext community exceeds 700K, with 97K+ funded traders who received $95M+ payouts with an average execution time of five hours.
Traders can choose from four challenges and six funded accounts from $6,000 to $200,000 for a one-time fee between $59 and $999. The maximum daily and total drawdown limits are 5% and 10%, and an 8%-5% profit target for the two-step evaluation.
Pros & Cons
- Six account options, a refundable evaluation fee, and a 10% reset discount
- MT4 and MT5 trading platforms with copy and algorithmic trading enabled
- 15% profit share during the evaluation process
- 60% to 90% profit share with ultra-fast withdrawal of five hours
- Limited asset selection
Is Forex Prop Trading a Good Idea in Canada?
Prop firms in Canada provide capital, but retail prop traders must accept strict risk management rules, potential consistency rules, strategy restrictions, or uncompetitive trading rules. Therefore, the viability of prop trading is a question every trader must answer based on their preferences, skills, and strategy.
Pros and Cons of Prop Trading in Canada
I recommend traders consider the pros and cons of prop trading in Canada before they pay a one-time evaluation or monthly subscription fee.
The Pros of Prop Trading in Canada
- Access to trading capital
- A generous profit split
- Well-established prop firm partnerships with trusted brokers
The Cons of Prop Trading in Canada
- Unregulated business
- The time zone is not ideal for trading the London trading session
- The regulatory environment differs among territories
- Tight risk management rules
- Some consistency rules make select trading strategies uncompetitive
- Not all prop firms allow algorithmic trading
- Performance pressure
- Inexperienced traders rush to prop firms offering educational content
How to Choose a Prop Trading Account in Canada
Traders must carefully evaluate the trading conditions and risk management rules of prop firms in Canada. While most offer similar core trading conditions to ensure prop traders have a competitive edge and support profitable trading, differences exist.
Prop traders should ensure their prop firms excel in the following aspects:
1. Reputation - Traders should avoid newly established prop firms, as prop firms are unregulated but duly registered businesses.
2. Trading Costs - Some US-based prop firms levy a monthly subscription fee, while non-US prop firms charge a one-time evaluation fee. Trading fees depend on the broker of prop firms.
3. Trading Platform - Most prop firms in Canada offer MT4, MT5, and TradeLocker for algorithmic trading and DXtrade for manual traders.
4. Profit Split - I recommend prop traders consider a profit split of 80%+.
5. Asset Selection - Prop firms in Canada offer Forex, cryptocurrencies, commodities, equities, and futures.
6. Trading Strategies - Almost all prop firms in Canada have trading strategy restrictions that will impact the viability of strategies.
7. Support - Trading with legitimate prop firms involves a contract and receiving payouts. Therefore, I recommend prop firms with fast, responsive customer support.
8. Payouts - Bank wires remain the go-to option, but the best prop firms in Canada also allow cryptocurrency transactions.
What Can You Trade with a Prop Firm in Canada?
The asset selection always depends on the prop firms and their partner broker, but the best prop firms in Canada offer Forex, cryptocurrencies, commodities, metals, equities, ETFs, and futures.
What Trading Platforms are Available in Canada for Prop Trading? H2
The best prop firms in Canada offer MT4, MT5, and TradeLocker, as they support algorithmic trading and DXtrade for manual traders. A few prop firms feature alternative third-party providers or deploy proprietary solutions.
Bottom Line
The best prop firms in Canada provide skilled traders with the necessary capital to succeed full-time. Most prop firms present themselves as excellent choices, but prop traders must evaluate and understand the trading rules and restrictions. They can limit the successful execution of trading strategies, especially if prop traders cannot use algorithmic solutions.
Another fact to consider is that most retail prop firms rely on evaluation fees or monthly subscriptions for their income and not on trading. Regulators label it shadow trading or a trading game as no actual trades reach the market. Therefore, Canadian prop traders must carefully evaluate prop firms before paying the evaluation fee.
