Best Forex Brokers in Canada 2021
Looking for the best Canadian forex broker for 2021? You are in the right place! There are a large variety of Forex brokers available to today’s Canadian Forex trader. Forex trading is always evolving with new FX brokers emerging all the time, making it difficult for both the Canadian and global forex trader to stay up to date. The 7 best forex brokers in Canada in 2021 are:
- FXCM Forex Broker
- Forex.com Forex Broker
- BlackBull Markets Forex Broker
- OctaFX Forex Broker
- VT Markets Forex Broker
- TickMill Forex Broker
- easyMarkets Forex Broker
However, the best Forex broker for one trader may not be the best broker for another. It depends on your trading style, what you want to trade and your support needs. Some Forex broker offerings are general, whilst some aspects might appeal to a trader’s individual style and needs.
Choose a Forex Broker
Forex broker regulation, however, is very important for any trader when choosing a broker, since one of the key features in the choice of broker is how safe your investment will be. The best forex brokers in Canada are generally regulated in different countries, by different regulators. In Canada, regulations have been set in place by the Canadian Securities Administrators (CSA), which is the main financial regulator in Canada and also an umbrella regulator for the thirteen provincial regulators. The Investment Industry Regulatory Organization of Canada (IIROC) is the main forex regulator catering to the Canadian retail FX market. As a Canadian trader, you can also trade with brokers regulated by European Financial Regulators.
On this page we review various forex brokers based on regulation, usability, platforms, minimum deposit, spreads, customer support and other criteria. Start by browsing our top list of recommended and trust worthy brokers below and continue by reading the individual reviews of each broker on the respective review pages (that are linked from the top list). All forex brokers below accept Canadian traders and also traders from a number of different countries.
Top 10 Tips for Picking an FX Broker in Canada
Here we look at ten different factors that we believe are of significant importance when you consider choosing a Forex Broker, whether you are a beginner or advanced trader. The significance of each will differ depending on your needs, which in turn will depend on your trading style, your knowledge level and your type of trading.
1. Regulation and how safe is my money?
You wouldn’t put a large amount of your savings in a bank account if you did not know that the bank was secure and regulated would you? So similarly why would you deposit with an FX Broker unless you were confident your funds and profits are safe?
In Canada, this would mean looking for a broker that is regulated by the IIROC. In the USA, the equivalent would be a broker regulated by the National Futures Association (NFA) and/or the Commodity Futures Trading Commission (CFTC).
Opening an account with a broker regulated by any of the above should allow for protection if you as a depositor/ trader have an issue or grievance with the broker. Check in the top list above to see which forex brokers are regulated in Canada by the IIROC.
2. Spreads and/ or Commission
Brokers do not provide their services for nothing, so they charge either commission per trade or more likely by the spread between the bid and offer prices. The wider the spread, effectively the more the trader has to pay to get into and out of each trade. So the narrower the spread, effectively the better off for the trader. Sometimes brokers offer fixed spreads, but often the spread will be variable depending on the volatility of the market.
3. Withdrawals and deposits
Most FX Brokers today offer very low requirements to open an account (from as little as 50 dollars). Brokers have different policies with regard to depositing, funding and withdrawals. Are you able to fund the account from a bank account via wire transfer, via credit card, via PayPal? When withdrawing, is this done via wire transfer, back to your bank account or credit card? Are there any withdrawal fees? Any initial deposit requirements?
4. Rollover interest (credit/ debit)
Some brokers charge a debit (or give a credit) for daily interest. This would be a consideration for any traders thinking of holding open positions over night.
5. Margin and Leverage
Many FX Trading accounts are based on the concept of margin and leverage. Leverage is basically the ability to increase the possible return on an investment or trade. A margin account allows the trader to use leverage by trading larger amounts than deposited in their account. This is because only the potential short term losses on the accounts need to be covered, not the full amount of the underlying asset. How much leverage any forex broker offers and the margin requirements may be a consideration when opening an account with a particular forex broker.
6. Types of forex accounts
There are different types of FX trading accounts which include more traditional cash exchange accounts, spread betting type accounts or CFDs (Contracts for Difference). The choice of which account to open will depend on your very specific needs and potentially even depend on your tax liabilities.
7. What markets can you trade?
All FX brokers in Canada offer trading in the major currency pairs, including EURUSD, USDJPY, GBPUSD, USDCAD, EURCAD etc. Most also offer currency cross rates, ability to trade a large selection of currency pairs against each other.
In addition, many brokers offer the opportunity to trade other financial markets and assets. These would include equity indices, government bond markets and commodities (such as oil, gold and copper).
8. Trading platforms supported by the broker
Practically all brokers offer a trading platform, whereby the trader can access the various markets available to trade. Some brokers provide their own developed trading platforms, whilst others suggest downloading free platforms offered by third-party providers. There are many different factors to consider when looking at differing trading platforms including; ease of use, accessibility, trading tools on offer, charting packages, mobile/ tablet access etc.
9. Customer support
Many markets are now open 24 hours a day, five days during the week. So a strong customer support service would be open at all times during this time. Also, the speed of access to a live individual rather than an automated service should certainly be considered. Inevitably, when calling customer service it is usually with an issue, which as a trader you will likely want resolved as soon as possible.
10. Demo account available?
Most, but not all, Forex Brokers offer demo trading accounts to practice on. A demo account allows you to test the trading platform and evaluate some of the above-mentioned factors. All forex brokers for Canada in the top list we provide above will offer demo accounts to new traders.
In the top list above you will find links to our reviews of the best forex brokers for Canadian traders. In these reviews we’ve covered most of these ten tips to make your choice of broker as easy as possible.