Pioneers in Forex: Leading Brokers Catering to Canadian Traders
Publish:
Modified:
The universe of currency trading is a complex one where each nation’s currency is controlled by its central financial institute. Since these governmental bodies have different rules and regulations, it can be difficult sometimes to navigate through all of them. Before taking in clients, brokerages in Canada must be authorized by the IIROC.
While some of these brokers offer a wide range of trading functionalities, others only cover the basic aspects of trading. These brokers are also affordable and they let you place trades in several instruments using high-end platforms.
Various provinces in Canada have various guidelines, and this can sometimes seem too complicated. Nevertheless, this country has some of the most dependable Forex brokers and we have listed some of them here.
In this article, we shall look at the best Forex brokers in Canada and their features. All of them are licensed and legitimate businesses that have been offering high-quality services to traders for quite some time now.
After going through this list, hopefully, you can find a firm that suits your trading goals and budget. We have also covered all the vital things you need to consider before you make your ultimate choice.
Top 5 IIROC Regulated Brokers for Forex Trading in Canada
Forex.com
Founded: 2001
Location: USA
Currency Pairs: 55
EURUSD Spread: 0.6 pips
Leverage: Up to 1:400
Forex.com is a highly-regulated broker that offers both variable and fixed spreads starting from 0.2 pips. While it charges inactivity fees for balances less than $10k, you can find several instruments to trade in here. At Forex.com, you can make withdrawals and deposits using only three currencies, namely GBP, EUR, and USD.
If you are familiar with programming, you can use the automated trading functionality of this broker to achieve superior results. At this firm, you will find a treasure trove of research materials that will let you make better trading decisions.
This is one of the few places where you can find REST API features. Thus, you can see the prices of assets in real-time and access new types of orders. You can also build your own trading schemes and customize the trade execution procedure. One of the best things about Forex.com is that it protects you against negative balance.
Pros
- User-friendly platform
- Advanced research material available
- More than 8 currencies can be accessed
Cons
- Inactivity fee
- Account verification takes a lot of time
Read more about Forex.com in this review
AvaTrade
Founded: 2006
Location: Ireland
Currency Pairs: 55
EURUSD Spread: 0.9 pips
Leverage: Up to 1:400
Being one of the first brokers to enter the Forex industry, AvaTrade has a stellar reputation. This brokerage protects its users against losses and negative balance, which makes it suitable for novice traders. Here, you can also deal in Forex options, which is not something that all brokers allow. If you possess a certain level of experience, you can use advanced options trading schemes with this brokerage.
Because of the high-end protective features, you have the freedom of test running your schemes without the risk of total ruin. This feature, known as AvaProtect, requires you to pay a separate fee. Beginners can find a wealth of research material on the official website that will help strengthen their basic concepts.
AvaTrade has a team consisting of experienced financial analysts who share their analyses with the public in the form of videos. You can also stay up to date with the latest financial developments in the education section.
Pros
- Advanced research tools
- Swift account opening
- Social trading features
Cons
- Maturity rollover fees
- High inactivity fees
Read more about AvaTrade in this review
Oanda
Founded: 1995
Location: USA
Currency Pairs: 70
EURUSD Spread: 1 pips
Leverage: Up to 1:50
With Oanda, you can use a Standard or a Premium Account. The former allows you to deposit as much money as you want, while the latter requires you to deposit a minimum amount. The margin requirements are a bit high, so if you lack funds in your account, perhaps this is not the best option for you.
Here, you can find some potent research tools that will help you make more prudent trading commitments. It also has API and several technical indicators. Opening an account on this website doesn’t take much effort or time. When you withdraw money using the wire transfer method, there might be a processing time of around 2-5 days.
The desktop platform for Oanda is exceptionally smooth and there is a wide range of analysis tools that can be useful for adroit Forex dealers. This brokerage prides itself on its swift order execution and transparency.
Pros
- Efficient customer service
- Live webinars
- Not suitable for low-budget traders
Cons
- Research material is disorganized
- Lack of advanced authentication features
Read more about Oanda in this review
CMC Markets
Founded: 1989
Location: UK
Currency Pairs: 158
EURUSD Spread: 0.7 pips
Leverage: Up to 1:30
With clients in more than 100 nations, CMC Markets is one of the most trustworthy brokers in Canada. This brokerage allows you to trade in more than 300 pairs, which is quite remarkable. Very few brokers offer this many options. With this broker, you don’t need to worry about deposit insurance, since it has ties with the FSCS.
You can use the demo account without paying any fee whatsoever. With this type of account, you get 10,000 Euros to start off with. You can also submit a request to enhance this balance. There are subtle ways in which this account differs from the real one. The latter has sophisticated account management functionalities and chart patterns.
The design of this platform is quite user-friendly and it is perfect for beginners who wish to brush up on their trading skills. Here you can find spreads as low as 0.3 pips.
Pros
- No minimum deposit
- Low initial spreads
- Wide range of assets
Cons
- Fixed deposit bonus not available
- Zero spread account missing
Read more about CMC Markets in this review
Interactive Brokers
Founded: 1978
Location: USA
Currency Pairs: 23
EURUSD Spread: 0.2 pips
Leverage: Up to 1:50
Interactive Brokers is best-suited for expert traders, and its desktop platform has several potent tools that can be quite useful. The mobile app also has some advanced functionalities, but day traders might find it a bit hard to navigate through.
Here, you can add the pairs of your choice to a watch list and track the latest developments. One of the best things about this brokerage is the high-end charting tools that allow you to compare prices with heightened accuracy. If you are a merchant who likes using advanced trading schemes, you can use the conditional order types available on this brokerage.
With so many configurable features, novice traders might feel lost while placing deals. Forex dealers can track the economic calendar, news developments, and charts containing several indicators. You can also find some valuable research material from trusted third-party sources.
Pros
- High-end charting tools
- Large number of filtering options for watch list
- Different account types
Cons
- Tough to navigate
- IBKR Pro account has inactivity fees
Read more about Interactive Brokers in this review
How IIROC regulation protects traders
IIROC has high professional and ethical standards that must be followed by regulated brokers. These brokerages are reviewed on a regular basis for compliance. If they break any rules and directives set by the organization, IIROC takes disciplinary actions against them.
Each brokerage firm regulated by IIROC must make an effort to understand the financial objectives of the client. This way, they know what your exact financial situation is, and how knowledgeable you are regarding investment. You are therefore provided with appropriate products, schemes, and account types. Additionally, the firm must update you regarding your trading performance, periodic fees, and account statements.
Every broker associated with this body is required to have some amount of money kept aside to act as a cushion in case they become insolvent. Brokerages cannot consider the trader’s investments as their own assets. When Canadian traders sign up with an IIROC regulated broker, they are shielded by the protection fund that can get you up to $1,000,000 in case there is liquidation.
In case you have a complaint against the broker, they are bound to address it. They must also communicate the same to IIROC and they will follow up to ensure it has been addressed properly.
What is important when choosing a Forex broker in Canada
While choosing a Canadian broker, you should examine these factors:
Platforms
The first thing to look for while selecting a Forex broker in Canada is the type of platforms it supports. While some of them offer only a single platform, others give you multiple options. Some brokers have downloadable platforms and generally, these have some high-end features.
Then there are platforms that you can simply access using your web browser. You ought to make sure the platform has a smooth interface and that it shows you the live price charts. If it has some sophisticated indicators and trading tools, it’s an added plus.
Tradable Assets
While most merchants prefer dealing in major pairs, some try to diversify their portfolios by investing in minor and exotic pairs. Not all brokers support the lesser-known currencies, so if you are interested in dealing in a particular pair, you ought to make sure it is available with the brokerage.
Fees
Brokerages generally earn money in the form of spreads and commissions. Some of them are commission-free, but these organizations are more likely to have larger spreads.
Support
Since currency trading takes place round the clock, every brokerage firm must have a responsive and efficient customer support team. You should look for one that offers multiple ways of contacting customer support.
How to select a good Canadian brokerage?
You can choose “best forex broker Canada” using the following tips ;
1. Fees: Choose brokers with reasonable fees. You’ll eventually be able to save money thanks to this.
2. Trading environment: Make sure your trading platform is simple to use and navigate at the brokerage.
3. Customer support: Pick a brokerage with exemplary client care. You want to have access to assistance when you require it.
3. Research resources: Look for a brokerage that provides research resources, including analyst reports, stock screeners, and market news.
4. Minimums for accounts: Certain brokerages require a minimum account balance. Make sure the one you choose is within your means.
What are the differences between investing in Canada vs. the United States?
Annual charges
A Canadian internet broker frequently demands annual fees, which is extremely uncommon in the United States.
Tools and platforms for trading
The best forex broker Canada and top broker companies do a decent job with stock research. These platforms and trading tools, however, might differ greatly among brokers.
Order types
The options for trading U.S. equities from Canada can differ from broker to broker. After-hours trading is included in this. Additionally, different brokers will accept other advanced order types, such as conditional orders.
Financial services
Banks that enable online trading in the United States offer a seamless customer experience. Customer experience varies significantly from bank to bank in Canada.
Conclusion
Canadian investors are well-protected by the IIROC, although the rules may vary according to the province. The brokers mentioned above are some of the best in the business. When you trade with them, you can rest easy knowing your funds are in safe hands.
Our Experts
