3 best Forex Brokers & platforms in Canada – Comparisons and reviews

If you live in Canada, you have no problem with options when it comes to forex brokers. The countless options can make it tough to choose whom to deal with.

See the list of the best Forex Brokers in Canada:

Forex Broker:	Review:	Regulation:	Spreads:	Assets:	Advantages:	Open account:
1. RoboForex	(5 / 5) ➜ Read the review	IFSC	Starting 0.0 pips & $ 4.0 commission per 1 lot traded	9,000+ (50+ currency pairs)	+ Huge variety + Micro accounts + Free bonus program + Leverage up to 1:2000 + ECN accounts + MT4/MT5/cTrader	Live-account from $ 10 Open your free forex account (Risk warning: 78.1% of retail CFD accounts lose money)
2. BlackBull Markets	(5 / 5) ➜ Read the review	FSPR, FSCL	Starting 0.0 pips & negotiable commission per 1 lot	500+ (64+ currency pairs)	+ ECN Broker + Deep pool execution + High liquidity + Best execution + Leverage 1:500 + MT4/MT5	Live-account from $ 200 Open your free forex account (Risk warning: 78.1% of retail CFD accounts lose money)
3. Pepperstone	(4.9 / 5) ➜ Read the review	FCA, ASIC, DSFA, SCB	Starting 0.0 pips & $ 3.5 commission per 1 lot	1,000+ (40+ currency pairs)	+ Fast execution + Large FX Broker + Good service + MT4/MT5/cTrader + TradingView Charts	Live-account from $ 200 Open your free forex account (Risk warning: 74-89 % of retail investor accounts lose money when trading CFDs)

That is why we have reviewed several trading platforms to bring you this brief list. This article will help narrow down your choices and simplify your decision.

3 Best forex brokers in Canada

1. RoboForex
2. BlackBull Markets
3. Pepperstone

Here’s a summary of these brokers’ offerings:

1. RoboForex

Does not accept customers from Canada. 

2. BlackBull Markets 

Does not accept customers from Canada. 

3. Pepperstone 

Not available in Canada. 

What are the financial regulations in Canada?

The Investment Industry Regulatory Organization of Canada (IIROC) oversees the country’s forex sector. Forex brokers are considered “Investment dealers” in Canada. 

The IIROC is among the strictest financial bodies in the world, requiring high-quality standards from its members. Consequently, Canadians can feel safe dealing with IIROC-authorized forex brokers.

While the IIROC oversees the entire Canadian Financial markets, each province has a regulatory body that may have additional requirements for trading forex. For instance, Quebec has the Autorite des marches Financias regulating its forex and CFD trading activities.

At the same time, the British Columbia Securities Commission is responsible for British Columbia. 

An example of different policies can be the trading amount and leverage limit for the citizens of each province.

Thankfully, the policies and regulations of the different territories have been reconciled and are now consistent with each other.

The IIROC permits Canadians to deal with licensed forex brokers outside Canada. The country is among the few developed nations in the world allowing this.

Forex traders who seek IIROC’s protection should deal with authorized brokers inside Canada.

All IIROC licensed brokers are Canadian Investor Protection Fund (CIPF) members. This fund provides $1,000,000 insurance cover for the broker in case of business failure. 

IIROC also verifies brokerage firms’ employees’ qualifications and suitability to preserve high-quality standards.

Canadian traders who like to trade with an IIROC broker can access leverage up to 50:1. This leverage is relatively high compared to what is offered in other developed nations. For instance, brokers in the EU zones holding licenses from those jurisdictions can only offer 30:1. In places like New Zealand; forex traders can only access 10:1 leverage. 50:1 provides enough to trade profitably and within a reasonable risk limit.

Canadians can confirm if a broker is IIROC authorized by visiting their website. The broker’s license information is often displayed below the page in smaller prints. The details of the regulations may include the financial body’s name, address, and broker’s license number.

Security for Canadian traders

Canadians can be safe and enjoy full protection if they deal with IIROC-licensed brokers inside Canada.

Internationally brokers are also safe if the broker holds a license from a top-rated financial body.

These well-known financial bodies are:

• FCA, United Kingdom. 
• CySEC, Cyprus.
• CTFC, United States. 
• ASIC, Australia. 
• FSCA, South Africa.
• DFSA, Dubai. 
• BaFin, Germany. 

Is it legal to trade forex in Canada?

Yes. It is legal and safe to trade forex in Canada. Canadians should choose brokers holding acceptable licenses. That is the IIROC license if it is a local broker or a top-tier license if an international broker.

How to trade forex in Canada – An overview

The most important first step to trading forex is to find a good broker. The broker you choose will partly determine the success of your forex trading venture.

The broker should be among the best in the industry. 

Here’s what to look out for in a broker:

• Regulations

Ensure they hold the appropriate license, as explained above. A broker holding a license from a reputable body can hardly scam traders. Also, your funds remain protected if the broker’s business fails.

• Competitive fees

Forex trading is about earning from price movements. These price increases or decreases are measured in pips, which, at a glance, appear insignificant. The broker deducts their fees from each trade in the form of spreads and commissions. If these deductions are too high, the profit will indeed be insignificant. You must check and compare brokers’ charges before signing up.

• Free demo

A reputable broker should offer traders the chance to test the trading platform. The trader should experience the broker’s trading environment and basic features on the platform before investing their money. Some brokers offer lifetime access to this free account with reloadable virtual credits. Others offer between 4 weeks to 12 weeks of access. The trader should avoid any broker who DOES NOT give the option of a free demo.

• 24-hours customer service 

Responsive support service is one of the major elements of a good trading environment. You should be able to reach support while trading. The support staff should have sufficient knowledge to resolve your issues or advise you. Reading customers’ reviews online helps confirm a broker’s support service quality.

• Easy deposit and withdrawal

Good brokers provide multiple easy payment methods to simplify funds transfer to and from trading accounts. Confirm that the broker you’re interested in gives several popular payment options. Brokerage fees hardly apply for deposits and withdrawals. Although, some funding methods may attract charges. 

The broker you choose should meet all of these requirements. Proceed to registration and trading once you’ve picked a suitable broker.

Steps to trading forex:

1. Open an account for the Canadian trader

Visit the broker’s website to create a trading account. The broker’s website specifically designed for Canadians, should load once you type in the web address.

Click on join or create an account. This tab is usually displayed boldly at the top right or center of the landing page.

Enter the required information and click on OK or CREATE ACCOUNT. The requested details may be your email address, name, and phone number. 

The system confirms the email by sending a verification link. Open your mailbox and click on that link. Then fill out the rest of the requested details in the form that pops up.

You might be required to upload a government-issued ID card, or just your Social Insurance Number (SIN) might be requested. Proof of address is required in some countries. But perhaps, just the SIN will do for Canadians. 

2. Start with a demo account or real account 

Once you complete your registration, you may first check out the broker’s platform and offerings by trading on the free demo.

This account comes with enough virtual funds to conduct many trades. It is an opportunity to practice trading if you’re new to the industry. 

You can also use a demo account to test a newly acquired trading strategy before using it in a live trade. 

You might want to experience the new broker’s trading environment without financial risks if you’re switching brokers. The demo account gives the opportunity to do that.

3. Deposit money

After testing the demo, it is time for real forex trading.

To do trade live, you need real funds in your account. As we mentioned, the broker should provide different simple payment methods from which you can choose.

The popular easy methods include Visa, Bank transfer, and MasterCard. For Canadians, local bank deposits might be available with most brokers. Online payment options may include PayPal, Skrill, Neteller, and SoFort.

4. Use analysis and strategies

Successful forex trading requires a proper market analysis with an effective strategy. 

These two ingredients are crucial to profitable trading.

Through analysis, the trader understands the asset better. They identify what drives the price, and it helps them make better trading decisions. 

Trading strategy refers to determining the appropriate points to enter a forex trade, regardless of market condition. 

Successful traders conduct two important analyses as they trade. These analyses are:

• Technical analysis 
• Fundamental analysis 

Technical analysis is the most common. The trader studies the forex price chart and the patterns that result from price movements. These patterns contain trading opportunities that the user has to identify. Brokers provide many tools to help traders do proper technical analysis. Indicators are also included among these tools that show the trader entry and exit points that can earn profits.

Fundamental analysis is also a popular and vital market analysis that involves analyzing the factors directly influencing the national currency’s exchange rate. These are called forex fundamentals, including economic elements such as GDP, interest rate, inflation, etc.

In addition to these two, some traders also carry out market sentiment analysis. 

Market sentiment has to do with the market participants’ attitudes toward the currency pairs. The price movements show how the investors and traders feel about the asset. For example, more buying activities than selling indicate that the market participants expect a price rise. This further pushes the price up and leaves the market in an uptrend. 

Brokers provide several technical indicators to measure market sentiments. Traders must combine these with other technical indicators to gain an accurate insight into the asset and price direction. 

Success in forex trading results from a proper blend of analysis and good strategy. 

Below, we look at some common forex trading strategies:

• Scalping

The scalping strategy in forex is a short-term approach where the trader holds their trades for only a few minutes. The goal is to make small profits from each trade. So they open and close many trades throughout the day, and these small amounts add up to a good size.

Some who trade forex for a living use this strategy. The trader has to identify the trend, do the necessary analyses, and place the correct trades. It requires constant monitoring of positions. 

• Price action strategy 

Price action trading involves the use of less technical indicators and more recent price information. The trader looks at the price chart and places trades based on the current moves. The trader does not wait for patterns to form. Instead, they base the trading decisions on ongoing price movements, as the candlesticks show. This strategy requires understanding how to interpret candlesticks’ movements.

• News trading

Traders who use this strategy in forex place trades based on market participants’ expectations. This trading requires strong fundamental analysis. Economic reports have a huge impact on the exchange rate. Traders combine fundamentals with technical analysis to use the strategy successfully. A certain news report can cause the market to make sudden shifts. The trader has to foresee this shift and take the appropriate position.

• Trend trading strategy

Some traders would argue that every trading strategy is based on first identifying a market trend. This fact is accurate. Before taking positions, the trader must first identify the market condition (trend). A trend can be bullish, bearish, or sideways.

Another name for a bullish trend is an uptrend. It is a condition in which prices are reaching new highs. The bearish trend is the opposite, while sideways is a condition where the price is neither trending high nor low. All of these present their own opportunities, and the trader needs to find the best entry and exit points in any market condition. For instance, a bearish/downtrend market means there are opportunities for SELL positions. The trader then finds the best entry point to capitalize on the trend.

5. Make a profit

Use the best strategy and carry out basic analysis to trade the market.

With this, you should soon start earning in the trade.

It stays in your brokerage wallet, and you can increase your investment with it or withdraw the funds.

The FUNDs tab on the trading platform would include a Withdrawal option to transfer funds out. 

Click on this tab if you wish to withdraw your profit. Fill out the form that pops up and click on submit. 

The broker starts processing the request, and the amount soon hits your account. Withdrawals take more time than deposits. So expect to see the money in your account in a few hours to a few days. It depends on the payment method used and the broker.

Final thoughts: The best Forex Brokers are available in Canada

While some brokers are not available in Canada due to IIROC’s strict requirements, many online accept Canadian traders.

The ones recommended in this article are among the best. Remember that a good broker should offer quality trading services in a conducive environment with competitive fees. 

Canadians should trade with quality brokers, offering reasonable investment protection to customers. This translates to an IIROC-authorized broker or a top-rated licensed international one.

Starting forex trading should be easy enough after reading this article.

1. RoboForex
2. BlackBull Markets
3. Pepperstone

FAQ – The most asked questions about Forex Broker Canada :

Last Updated on January 4, 2024 by Arkady Müller