A smart trader always shops around before deciding who to entrust with their money. Regardless of how experienced a trader you may be, there will always be an occasion that you will need help from customer support. We suggest keeping the following checklist in mind when making your decision: We have researched Forex trading in Canada extensively to bring you reviews and recommendations of the top Canadian brokers. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate.
Top Forex Brokers in Canada Unlike in the US where traders are permitted to deposit money with nationally-licensed brokers only (NFA regulated brokers), Canadian traders are able to trade with nearly any brokerage of their choosing.
Can Forex traders from Canada trade in any broker they want?
A smart trader always shops around before deciding who to entrust with their money. This is the major aspect of the trade offer. Currency pairs are generally divided into major, minor and exotic.
Major currency pairs are the ones consisted of the American dollar and the seven other most traded currencies in the world, including the Canadian dollar. Last but not least, exotic pairs are pairs that include some of the less traded currencies like the Turkish lira or the South African Rand. These currencies are usually paired with the US dollar, which is by far the most traded currency in the world.
Closely tied to the currency pairs is the spread. Keep note of this term, it is one of the most important terms in forex. The spread signifies the difference between the buy and the sell price. Brokers have to offer two different prices because that is how they make their profit. The bigger the gap, the more profit they make. Generally, brokers offer a lot tighter spread on major and more popular currency pairs, whereas if you like to trade less popular currencies, you will have to settle for a less favourable spread.
The leverage is another important segment, as it allows every trader to trade a lot larger amount of currency units than the amount of money that they have at their disposal. If the leverage is Some countries and their respective regulators have set limits on the amounts of leverage that brokers can offer. In Canada that is not the case and Canadians will be able to trade with leverage rates as high as Trading with leverage requires a high level of caution and you need to be fully aware of the associated risks and dangers.
Forex trading takes place through a platform. Most brokers nowadays offer a web-based trading platform, a website, where you can register and log in without having to download any software. However, most brokers also offer a download version which you can download for free and then install on your computer.
For some traders, that is a more convenient option. Moreover, as we live in an age when we use are smartphones and tablets more often than ever, brokers wanted to make sure that people who are constantly on the move will also be able to trade forex.
Most brokers, at least the most popular ones have developed, usually, more than one mobile trading platform in order to cater to the needs of owners of different mobile devices, most notably iOS and Android. Start by checking each broker to make sure it offers the pairs you want.
Next, check the spreads of each of the top Canadian Forex brokers to compare their offerings and determine where you'll pay the least commission. You'll also want to check each Canadian broker's policy about swaps, rollovers a leverage, all of which will ensure that your trades will be executed exactly how you want them, and that your Canadian Forex experience will be as pleasant and hopefully profitable as possible.
While trading conditions are certainly a vital part of the Forex trading experience, we believe that the most important parts of the trading experience are related to the reliability, professionalism and security of each Canadian Forex broker.
There are several ways to participate in online trading in Canada: You can choose a broker that is regulated outside of Canada but that serves Canadian Forex traders.
These brokers may be regulated in multiple jurisdictions which is a strong sign that they are reliable and that your money will be secure even if you're doing the online trading from Canada, and not within their country of licensing.
Lastly, you can opt for an unregulated broker. These brokers accept brokers everywhere, but will not guarantee safety of funds in a reliable way. The majority of Forex traders today are using the MetaTrader4 platform that is provided by most brokers. This is a generic platform which features the brokers logo on it. You can the brokers platforms for a test drive before committing to depositing real funds. In forex, trading costs can be in the form of commissions or spreads levied on each trade that the traders make.
In terms of spreads, they can be fixed or variable. Fixed spreads although are typically higher than variable lets a trader knows his trading cost prior to his trade execution.
Variable spreads on the other hand are usually lower than fixed spreads but are susceptible to spikes due to changes in market volatility. For professional traders who deal with larger trading volumes than the average retail trader, this type of broker is the most cost effective. As forex brokers in Canada are subjected to different regulatory requirements from the US, the leverage ratio which forex brokers in Canada are able to offer to their traders are significantly higher than what forex traders in the US are receiving from their brokers.
S, forex brokers are only permitted to offer a maximum of 1: In addition, no hedging is permitted eg. These are put in place by the U. S regulatory authorities in order to minimize the losses that US traders make from trading forex. For forex brokers in Canada, they have more leeway than brokers in the U. This is why some Canadian based brokers are able to offer leverage as high as 1: Micro or Mini trading accounts typically have the lowest minimum deposit requirements and are geared towards beginner traders.
These types of trading accounts allow traders to trade in less than a standard lot of , units of currency. For traders who are more experienced, they usually go for the standard trading account which allows them to access more trading features as well as assets to be traded. For traders who demand more from their brokers, they have the choice of the VIP trading account. This type of trading account typically requires a minimum investment which runs into tens of thousands of dollars.
Finally if you are a Muslim forex trader, you might want to consider trading with a swap free trading account as there is no interest or commission applicable on trades making this type of trading account compliant with Shariah law.
On top of the trading account types, always make a point to check the terms and conditions for withdrawals which are attached to the different types of trading account.
Of course with all the different factors to consider, it is easy for a person to overlook customer support. Nevertheless, customer support is as important as all the other factors which a trader must not overlook. Regardless of how experienced a trader you may be, there will always be an occasion that you will need help from customer support. You need to be sure that whenever you need assistance, help is always nearby, as there is nothing more frustrating than not being able to reach customer support when you are in difficulty.
Hence check if the customer support is available 24 hours a day or only during office hours and how efficient they are. In addition, check what methods are available for communicating with the support staff.
Top 10 Canadian Forex Brokers by TradersAsset The “bricks and mortar” Canadian finance sector is very well regulated. In fact, there are three Regulatory Commissions and Trade Association that many financial companies must belong to. Find Good Forex Brokers in Canada Forex brokers might be distinguished in many ways, but the main criterion is usually their residence. Even though in most cases, the location of the firm we are clients of is not that important, here in financial trading, things are completely different/5(8). Top Forex Brokers in Canada for Forex Trading. There is more than one reason why online forex trading is so popular in the last years. Firstly, trading forex is a form of investment, unlike many ways of earning money online, which have more to do with being lucky, than .