Best FOREX Brokers in Canada 2024
With many years of meticulous FOREX broker testing, Arincen stands out as a voice of authority. Our analyses, shaped by exhaustive data collection, are trusted by many. Each year, we gather 120 data points from more than 100 brokers. Our team of more than 20 people collaborate extensively to produce high-quality broker reviews like this one. For a detailed explanation of how we test brokers, navigate to the bottom of this article.
As a new FOREX trader, you want to make sure your trading career is heading in the right direction from the very beginning. This makes your selection of the best FOREX broker an important one. We live in the digital age when retail trading is safer and more accessible than it has ever been.
Now, with a quick internet search, you can find out who the best online trading companies in Canada are. You will still need to perform your due diligence over and above what you read in articles like this one, but information is power, and there is a lot of information out there. To help you, we will be listing the best FOREX brokers in Canada today. This list is the result of a detailed review process carried out by experts at Arincen. We will share our review methodology so you can understand why we chose the companies we did.
Now, with a quick internet search, you can find out who the best online trading companies in Canada are. You will still need to perform your due diligence over and above what you read in articles like this one, but information is power, and there is a lot of information out there. To help you, we will be listing the best FOREX brokers in Canada today. This list is the result of a detailed review process carried out by experts at Arincen. We will share our review methodology so you can understand why we chose the companies we did.
Best FOREX Brokers in Canada in 2023
| Company name | Regulations | Minimum deposit | Main branch | Open account |
|---|---|---|---|---|
ICM Capital |
500$ | United Arab Emirates | ||
Tradeview |
250$ | USA | ||
XTB |
500$ | UK | ||
IG |
500$ | UK |
| Company name | ICM Capital |
| Regulations | |
| Minimum deposit | 500$ |
| Main branch | United Arab Emirates |
| Company name | Tradeview |
| Regulations | |
| Minimum deposit | 250$ |
| Main branch | USA |
| Company name | XTB |
| Regulations | |
| Minimum deposit | 500$ |
| Main branch | UK |
| Company name | IG |
| Regulations | |
| Minimum deposit | 500$ |
| Main branch | UK |
Top Tips for Selecting the Best FOREX Brokers in Canada
In Canada, the FOREX market has many first-rate brokers offering top-of-the-line services. To ensure the security and potential growth of your investments, you must engage with a broker with a well-established track record of success in this area. Conducting detailed research is fundamental to making an informed selection. As you navigate the process of choosing a FOREX broker in Canada, remember the following:
• Regulatory compliance is a must; the broker should be monitored by a credible regulatory agency, in this case, it is the Investment Industry Regulatory Organization of Canada (IIROC).
• Assess the broker's fee arrangement to confirm that it is both competitive and transparent.
• Choose a broker that offers a comprehensive suite of tradable financial assets, not just FOREX, as it's likely you will want to diversify one day.
• Uncompromising customer service is critical; opt for a broker whose support team is highly responsive.
• Make sure there is a broad selection of research tools and educational materials at your disposal.
• Assess the broker's fee arrangement to confirm that it is both competitive and transparent.
• Choose a broker that offers a comprehensive suite of tradable financial assets, not just FOREX, as it's likely you will want to diversify one day.
• Uncompromising customer service is critical; opt for a broker whose support team is highly responsive.
• Make sure there is a broad selection of research tools and educational materials at your disposal.
Best FOREX Brokers and Trading Platforms in Canada
With so many choices out there, it's hard to select the best trading platform in Canada. In this case, we've done the work for you. Here is a summary of each of the top brokers according to specific criteria, along with their pros and cons:
ICM - Capital 91.10: Best Deposit and Withdrawal Broker
XTB - 85.55: Best Customer Service Broker
IG - 85.45: Best Regulations Broker plus Convenient Platform
Saxo Bank - 80.09: Excellent Private Trading Platform
Dukascopy: 80.08: Best Swiss bank
CMC Markets - 80.07: More than 9,000 Assets
ThinkMarkets - 80.05: Aimed at the Audience of Traders
ICM capital Broker
ICM Capital is considered the industry leader in deposits and withdrawals, whereby each withdrawal does not take more than five business days. Moreover, the company offers its customers a handy credit card to withdraw their profits, in addition to enabling customers to use various deposit methods. The company, which is licensed by the UK's FCA, has several branches around the world. Among other things, it has a rich portfolio of assets, especially stocks, offers a low spread, as well as the ability to use MT4.
| Broker Evaluation | 8.11 |
| Regulatory Bodies | |
| Minimum Deposit | 500$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks - Crypto |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | yes |
| Trading Platforms | MT4 - MT5 - C TRADER -Web Platform |
Pros
-
Segregated client funds.
-
Regulated by the UK’s FCA.
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Established in 2009.
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More than 10,000 ICM Capital users and traders.
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Reasonable minimum deposit from $500.
-
Decent funding options.
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No swaps.
-
MetaTrader4 (MT4) desktop and mobile download.
Cons
-
Does not allow scalping.
-
Not ASIC-regulated.
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Relatively limited range of instruments.
-
Slow live-chat service.
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Relatively high trading fees.
-
Limited range of trading tools and resources
Dukascopy Broker
Tradeview Forex, interchangeably known as Tradeview Markets, was established in 2004 and is headquartered in the Cayman Islands, setting itself up as a significant player in the online FOREX and CFD trading world. Regulated by the Cayman Island Monetary Authority (CIMA) and the Malta Financial Services Authority (MFSA), Tradeview Forex is a reliable platform in a competitive market. The broker’s commitment to offering a broad and accessible trading environment shines through with its low deposit requirement and how it provides various advanced trading platforms to clientele.
| Broker Evaluation | 7 |
| Regulatory Bodies | |
| Minimum Deposit | $450 |
| Islamic Account | Yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks - Crypto |
| Main Branch | USA |
| Customer Service | 24/5 |
| Demo account | Yes |
| Trading Platforms | Proprietary Platform-MT4 - MT5 -Web Platform |
Pros
-
Established in 2004.
-
Variety of trading platforms, such as MT4, MT5, cTrader, and Currenex, catering to different trading preferences and strategies.
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Low minimum deposits.
-
beginners and experienced traders looking to refine their strategies.
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Supports automated trading through the use of Expert Advisors (EA) on MT4 and MT5 platforms.
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Decent leverage levels of 1:200 available in some jurisdictions.
-
Regulated by CIMA, MFSA, and will soon be regulated by the UK’s Financial Conduct Authority (FCA).
Cons
-
While regulated by CIMA and the MFSA, the broker is still in the final stages of becoming regulated by the tier-one FCA.
-
Trades on the Innovative Liquidity Connector® account are subject to commission charges, which may add to trading costs.
-
While offering high leverage up to 400:1 can be an advantage, it also introduces significant risks, especially for new traders.
XTB Broker
What distinguishes XTB is the fact that it offers the best customer experience among all the companies we have surveyed. Indeed, it boasts the fastest response rate from all the companies under investigation. This is especially relevant, since the market is always on-the-go, and so you need to act fast. XTB offers lots of asset classes, as well as the ability to use the MT4 trading platform. Finally, it maintains a relatively low spread, which is suitable for quick deals.
| Broker Evaluation | 8.55 |
| Regulatory Bodies | |
| Minimum Deposit | 500$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | yes |
| Trading Platforms | MT4 - MT5 -Web Platform |
Pros
-
Long history of operation.
-
Globally recognized, having won multiple awards.
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Some of the lowest FOREX spreads in the market.
-
Regulated by the FCA (UK).
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Offers protection for client accounts.
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Emphasis on customer service.
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Excellent support, learning and research tools.
Cons
-
Does not accept US clients.
-
Non-FOREX spread costs are relatively high.
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No GSLO.
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No back-testing or automated trading capabilities.
-
Conditions vary according to regulation and entity.
ig markets Broker
IG is arguably the best broker when it comes to security and trust, boasting, as it does, licenses from 10 regulatory bodies, including the all-important FCA from the UK. The company is also a bank and is a publicly traded company in London. It is known for offering more than 10,000 asset classes of currencies, commodities, future contracts, ETFs, indices, cryptocurrencies etc. Further, it has its own state-of-the-art trading platform and offers a relatively low spread.
| Broker Evaluation | 7.54 |
| Regulatory Bodies | |
| Minimum Deposit | 250$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | Yes |
| Trading Platforms | Proprietary Platform -MT4 - Web Platform |
Pros
-
Easy-to-navigate platform that is simple for beginners to master.
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Margin rates are easy to understand and affordable.
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Mobile and tablet platforms offer full functionality of the desktop version.
-
Accepts US clients.
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Access to more than 100 currency pairs
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Emphasis on education and research.
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Regulated by the FCA (UK), as well as the CFTC and the NFA (US).
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Offers protection for UK/EU client accounts.
Cons
-
US traders can currently only trade FOREX.
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No GSLO for US-based traders.
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No account protection for US clients.
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Relatively high share-CFD fees.
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No copy trading or back-testing integration on IG platform.
SAXO BANK Broker
Saxobank is considered one of the best investment banks in the area of financial markets and currencies, as it offers the very best trading platform and tools from all the companies we have reviewed. Meanwhile, its spread is very low and, as such, suitable for short-term deals; and it offers a large number of asset classes, including currencies, commodities, indices etc. Finally, its customer service is excellent and very responsive to traders' needs.
| Broker Evaluation | 6.09 |
| Regulatory Bodies | |
| Minimum Deposit | 10000$ |
| Islamic Account | No |
| Payment Methods | Bank transfer - credit card |
| Main Branch | Copenhagen, Denmark |
| Customer Service | 24/5 |
| Demo account | No |
| Trading Platforms | SaxoTrader |
Pros
-
Extensive range of offerings.
-
Regulated by the FCA (UK) and other top regulators.
-
Great trading platform.
-
Among the industry’s best research.
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Superior user interface.
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Offers protection for client accounts.
Cons
-
High bond, options and futures fees.
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Lack of emphasis on customer service.
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Confusing instrument fee structures.
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High minimum deposit.
-
Does not accept US clients.
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No MT4.
-
Lacks live chat.
CMC MARKETS Broker
CMC Markets is thought of as one the best companies, offering some 9,000 asset classes that encompass currencies, commodities, indices, cryptocurrencies, bonds and stocks. The company offers a relatively low spread, the MT4 platform, and fast customer service. It is most suited for traders looking for diversity in asset classes.
| Broker Evaluation | 7.07 |
| Regulatory Bodies | |
| Minimum Deposit | 0$ |
| Islamic Account | No |
| Payment Methods | Bank transfer - credit card - Electronic Banks |
| Main Branch | United Kingdom |
| Customer Service | 24/5 |
| Demo account | not |
| Trading Platforms | Proprietary Platform -MT4 - Web Platform |
Pros
-
Extensive range of offerings.
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Regulated by the FCA (UK).
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Low FOREX fees.
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Emphasis on education and customer service.
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Great Web and mobile platforms.
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Offers protection for client accounts.
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Research amenities are industry leading.
Cons
-
Does not accept US clients.
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Limited product portfolio.
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High stock CFD fees.
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High CFD spreads for certain indices.
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Differences between Next Generation and MT4.
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Complicated account verification.
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No back-testing or automated trading capabilities.
think markets Broker
Originally founded in New Zealand in 2010, and moving to Australia within the space of their first two years, Think Markets is a global online brokerage focusing on FOREX and CFD trading. In addition to a range of major and minor currency pairs. Think Markets has an array of CFDs on offer. This includes indices, as well as hard and soft commodities.
| Broker Evaluation | 8.05 |
| Regulatory Bodies | |
| Minimum Deposit | 0$ |
| Islamic Account | yes |
| Payment Methods | Bank transfer - credit card - Electronic Banks - Crypto |
| Main Branch | Australia |
| Customer Service | 24/5 |
| Demo account | not |
| Trading Platforms | Proprietary Platform -Web platform-mt4- mt5 |
Pros
-
Beginner assistance offered through 24/6 channels.
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Spreads are as low as 0.0 pips.
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24/7 expert customer service.
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CFD shares and indices come at no extra fee.
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Zero broker fees for FOREX trading.
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Technical analysis and quality market information.
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Percentage allocation management module (PAMM) and Multi-account manager (MAM) accounts available.
Cons
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Direct share trading is on a separate platform.
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No binary options offered.
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Commissions charged for two account types.
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After a strong early start, ThinkTrader user ratings have slid to 3.4 stars.
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No US, Canada or Japan clients allowed.
There is a high degree of risk involved in trading securities like FOREX, or CFDs, which are highly complex instruments. As a trader, you could be exposed to excessive leverage, questionable broker tactics, market volatility, and limited regulatory protection. Despite your best trading techniques and risk management strategies, your efforts may not be profitable, and you could suffer losses.
What is FOREX and Why Do We Need a Broker to Trade?
The foreign exchange market is a decentralized marketplace where global currencies are bought and sold. Currency trading is conducted electronically over the counter (OTC). This means that all transactions occur via computer networks between traders all over the world rather than on one centralized exchange. The FOREX market operates 24 hours a day and five days a week (Monday to Friday), except for international holidays. The FOREX market is the largest financial market in the world. The best FOREX brokers in Canada play a key role in this marketplace by enabling clients to buy and sell through a trading platform. Most trading platforms are accessible in web and mobile format.
How Do I Choose the Best FOREX Broker in Canada?
Canada is a major global economy that often features in the top 10 lists in the world for GDP as well as income per capita. With a population of some 39 million people, it has a large and diverse pool of traders living on its shores. It is a well-resourced nation that is run along the idea that every participant in each area of business must follow the rules for the betterment of the whole country.
In keeping with this ethos, Canadian authorities have a firm hand on the financial markets in the country and how they are run. To operate as a business that offers institutional brokerage securities services, corporate finance, registered professional trading and market making, firms must be registered with the Canadian Securities Exchange (CSE).
Further, firms must also be in good standing with the IIROC, which is the primary financial regulator in Canada, whose powers even supersede those of the CSE, even though its relationship is more complimentary than hierarchical. To become registered by the IIROC, firms must be formed under Canadian federal, provincial, or territorial law. A firm outside Canada would need to create a Canadian entity that would apply for IIROC membership. Be aware also that, depending on the province in which the broker is situated, it may be subject to additional provincial regulation.
Regulation and Licensing in Canada
The IIROC is a powerful investment industry regulatory organization. This premier regulator enforces rules regarding the proficiency, business and financial conduct of firms operating in its ambit. At the time of writing, the regulator indicated that it oversaw the affairs of approximately 174 Canadian investment firms and more than 31,000 registered individuals.
All FOREX brokers are subject to rigorous, comprehensive training and monitoring. IIROC teams continually conduct reviews and work with firms to ensure they meet high standards of business and trading supervision while providing advice that appropriately reflects their clients’ needs
The IIROC has surveillance teams based in Montreal, Toronto, and Vancouver. The regulator’s enforcement staff ensure timely identification, investigation, and prosecution of regulatory misconduct. Where evidence of wrongdoing is established, the regulator can institute fines, suspensions, as well as permanent bans on individuals and companies.
While the CSE and IIROC call the shots in Canada, there are other major regulators around the world. If you want to read more about some of the best-regarded regulators, read our article on regulation here. As we have said, as someone resident in Canada, it’s enough that your broker is regulated by the IIROC and CSE.
Choosing a broker that is well-regulated isn't merely a matter of preference—it's a protective measure. When a broker is under the watch of a regulator, it undergoes stringent assessments to ensure transparency, fair trading practices and your financial security. Opting for an unregulated broker brings with it significant risks.
To ensure that your broker is legit, you can follow these steps:
- Ask if the broker is licensed to sell you FOREX
- Check if the broker is registered with the CSE or IIROC
- Ask if your broker is part of a compensation scheme
- Check your statements regularly to ensure that everything is above board.
Remember that it's important to comply with all applicable requirements, including any self-regulatory organizations to which brokers belong, and not just those mentioned here.
Be Careful of Non-Regulated Brokers
Your broker should be regulated by a reputable authority who has a history of strong oversight. Your broker does not have to be regulated by an overseas watchdog, you can also go with a regulator in your jurisdiction. To check if your broker is registered with a regulator, navigate to the regulator’s official website.
Leverage
Depending on the regulator under which your broker works, you will encounter different policies relative to leverage. Key regulators have implemented specific rules to limit the leverage offered to retail traders as a means of consumer protection.
Here are selected leverage rules according to some key regulators:
IIROC, Canada:
50:1 for major currency pairs
20:1 for non-major currency pairs
As per the IIROC, the leverage requirements for stocks vary based on the price of the stock, its volatility and other factors.
Financial Conduct Authority (FCA), UK:
30:1 for major currency pairs
20:1 for non-major currency pairs, gold and major indices
10:1 for commodities (excluding gold) and non-major equity indices
5:1 for individual equities and other reference values
2:1 for cryptocurrencies
These limits are in place to reduce the risk of significant losses for retail traders.
Swiss Financial Market Supervisory Authority (FINMA), Switzerland:
FINMA has not set specific leverage limits. However, Swiss brokers must adhere to rigorous capital and risk management requirements, ensuring they don't offer excessively high leverage that could endanger their solvency or their clients' funds.
Commodity Futures Trading Commission (CFTC), USA:
The CFTC enforces a 50:1 leverage limit on major currency pairs and a 20:1 limit on non-major currency pairs for retail FOREX traders.
The U.S. has a distinct regulatory environment, with retail FOREX trading regulated separately from other forms of derivatives trading.
It's worth noting that these rules generally apply to retail clients. Professional or institutional clients might have access to different levels of leverage, depending on the regulatory environment and the broker's policies. As we can see, responsible regulators closely monitor leverage levels. Leverage is a double-edged sword because you can make a lot of money, but you can just as easily suffer heavy losses.
Leverage, while offering handsome profits, significantly increases potential losses. Engaging in high leverage trading without a robust risk management strategy is like navigating treacherous financial waters without a safety net. Approach leverage with caution, employ sound trading strategies, and always try to develop a comprehensive understanding of market behaviors and how they affect your portfolio when you trade on leverage.
Stop-Out and Margin
As a FOREX trader, it's crucial to understand the most important terms you'll encounter to avoid going into a negative balance. One of these terms is "stop out," which refers to a situation where a broker automatically closes some or all of your open positions to prevent your account from going into a negative balance.
This is especially relevant for traders using leverage. The stop-out level is typically expressed as a percentage, representing the margin level at which the broker starts to close out open trades.
Here are the three most common stop-out levels:
0% Stop-Out Level:
At this level, when the margin level of the account drops to 0%, the broker will automatically close all open positions. This is the most aggressive stop-out level, and it gives no room for your positions to recover, even if the market turns in your favor immediately after reaching this level.
Here's how it works:
Imagine you have a trading account with a balance of $10,000, and you've opened several positions in the market. Your broker has a 0% Stop-Out Level policy, which means that if your margin level drops to 0%, they will automatically close all your open positions to prevent further losses.
- You start with a $10,000 trading account balance
- Using 30:1 leverage, you can control $300,000 worth of currency with your $10,000 account
- You open a position in EUR/USD with a notional value of $300,000, and the margin required for this trade is $10,000 (3.33% of the notional value)
- The market moves against your position, causing your account balance to drop to $9,000
- If your losses accumulate, your account balance decreases, and your margin level (account equity divided by used margin) drops accordingly
- When it reaches 0%, the broker's 0% Stop-Out Level policy comes into play
50% Stop-Out Level:
Here, if the margin level drops to 50%, the broker will start closing out positions. It offers a bit more flexibility compared to the 0% level. The broker will typically close the most unprofitable positions first, and if that's not enough to bring the margin level back above 50%, more positions will be closed until it's achieved.
100% Stop-Out Level:
A 100% stop-out level means that when a trader's equity equals the margin required for the open positions, the broker will start closing those positions. It's important to know that this is like the 0% level but might be worded differently based on broker terminology.
It's worth noting that while stop-out procedures are meant to protect you from negative balances, they can lead to significant losses in volatile markets if positions are closed automatically, especially if the market quickly reverses after the stop-out. As such, using protective measures, like stop-loss orders and not over-leveraging, is always a good idea. Additionally, the specific percentage and the order in which positions are closed can vary among brokers, so you need to be aware of your broker's policy on stop-out levels.
Tip: Invest in Your knowledge
For every aspiring retail trader, knowledge is key to a successful trading journey. We invite you to delve into Arincen's goldmine of insights, strategies, and expert analyses. Whether you're just embarking on your trading venture or trying to level up your trading game, our resources are designed to give you all the information you need. Visit our educational resources here.
Commissions and Fees
Trading fees are not always easy to monitor. Be sure to check how these fees compare with other brokers:
Spreads: In FOREX trading, a spread is the difference between the price at which a trader can buy (ask) and the price at which they can sell (bid) a currency pair. The spread can be categorized into two main types: fixed and variable.
Fixed Spreads: As the name suggests, fixed spreads remain constant regardless of market conditions. They don't change during the day and are generally set by the broker. Fixed spreads are preferred by some traders because they provide predictability, especially during times of high market volatility.
Variable Spreads: These spreads fluctuate based on market conditions. During times of low liquidity or high volatility, variable spreads can widen. However, during times of high liquidity and normal market conditions, the spreads can be very narrow. This type of spread is a direct reflection of market supply and demand.
Why do they differ?
The main reason they differ is due to their reaction to market conditions. Fixed spreads don't react to the market, giving traders a consistent spread cost. On the other hand, variable spreads can offer lower costs during normal market conditions but can widen and become more expensive during volatile times.
Example of Good vs. Worse Spreads for EUR/USD:
A good spread for the EUR/USD currency pair might be around 1.4 pips. This means that if the bid price is 1.1000, the ask price would be 1.1014.
A worse spread could be significantly higher, let's say 3.0 pips or more. In this scenario, if the bid price is 1.1000, the ask price would be 1.1030.
Traders always prefer narrower spreads because the cost of entering and exiting a trade is lower. However, it's essential to consider other factors, like the broker's reliability, platform features, and overall trading conditions when choosing between brokers offering different spreads. This article explains more about this important concept.
Commission: This is nothing more than the service charge that brokers require for carrying out transactions on behalf of their clients.
Rollover fees: When you leave a trade open overnight, the broker normally charges a rollover fee for the facility of holding your trade open for that period. This is because they assume the risk of the market changing adversely.
Withdrawal and Deposit Fees: Some platforms might charge fees for depositing or withdrawing funds. Pay attention to this. It's important to be aware of these and any associated limits or conditions.
Subscription or Inactivity Fees: Certain platforms have monthly charges or fees for inactive accounts. Ensure you're aware of these potential costs.
| Spread | Commission | Swap | Islamic Account | |
| Currencies | Starting from 1.3 Pips | 0$ | No | Available |
| Stocks | Starting from 18 Pips | 0$ | Yes | Unavailable |
| Commodities | Starting from 2.3 Pips | 0$ | No | Available |
| Indices | Starting from 4 Pips | 0$ | Yes | Unavailable |
| Spread | Commission | Swap | Islamic Account | |
| Currencies | Starting from 0.14 Pips | $0 | No | Available |
| Stocks | Starting from 0 Pips | $0 | No | Available |
| Commodities | Starting from 2 cent | $0 | No | Available |
| Indices | Starting from 0.2 Pips | $0 | No | Available |
| Spread | Commission | Swap | Islamic Account | |
| Currencies | Starting from 0.2 Pips | 0$ | No | Available |
| Stocks | Not Mentioned | 0$ | Yes | Unavailable |
| Commodities | Starting from 8 Pips | 0$ | No | Available |
| Indices | Starting from 4 Pips | 0$ | Yes | Unavailable |
| Spread | Commission | Swap | Islamic Account | |
| Currencies | Starting from 0.6 Pips | 0$ | Yes | Unavailable |
| Stocks | Starting from 2.4 Pips | 0$ | Yes | Unavailable |
| Commodities | Starting from 0.1 Pips | 0$ | Yes | Unavailable |
| Indices | Starting from 0.2 Pips | 0$ | Yes | Unavailable |
| Spread | Commission | Swap | Islamic Account | |
| Currencies | Starting from 0.9 Pips | $0 | Yes | Unavailable |
| Stocks | Starting from $0.02 | $6 | Yes | Unavailable |
| Commodities | Starting from $0.6 | $6 | Yes | Unavailable |
| Indices | Starting from $0.7 | $6 | Yes | Unavailable |
| Spread | Commission | Swap | Islamic Account | |
| Currencies | Starting from 0.5 Pips | $0 | Yes | Unavailable |
| Stocks | Starting from $0.2 | $10 | Yes | Unavailable |
| Commodities | Starting from 0.2 Pips | $0 | Yes | Unavailable |
| Indices | Starting from 0.5 Pips | $0 | Yes | Unavailable |
| Spread | Commission | Swap | Islamic Account | |
| Currencies | Starting from 0.4 Pips | $0 | Yes | Unavailable |
| Stocks | Starting from 0.1% | $0 | Yes | Unavailable |
| Commodities | Starting from $0.19 | $0 | Yes | Unavailable |
| Indices | Starting from 0.4 Pips | $0 | Yes | Unavailable |
Trading Platforms, Tools and, Features
When it comes to choosing the best trading platform, you should always consider a range of features suitable for both newbies and experienced traders. From what we’ve seen, MT4 has emerged as the gold standard in the FOREX trading world due to its ease of use, fast execution and sophisticated tools. Originally designed as a FOREX-exclusive platform, it has evolved to accommodate other financial instruments, such as stocks, indices and commodities. Regardless of whether you opt for a broker offering MT4 or a different platform, it's crucial to be informed about the following elements:
Platform Quality: Foremost, determine if the platform is web-based or requires downloading. A top trading platform should give users versatile access options.
Interface Customization: Investors must personalize the platform to their liking, enabling them to tailor their trading space to their specific needs.
Technical Analysis Tools: Ensure the platform comes with comprehensive technical indicators to support you in making educated choices.
Risk-Reduction Tools: Given the inherent risks in trading, a top-tier platform should offer tools for traders to establish stop-losses, set profit targets, and employ other order functionalities.
Performance and Quality: Especially for those new to the trading scene, it's important to have a platform that runs flawlessly with low downtimes or technical issues. This allows traders to concentrate on market trends rather than dealing with software problems.
Educational Materials: Leading brokers provide platforms that are not only user-friendly but also equipped with instructional materials, walkthroughs and a dedicated customer service team to help traders overcome any potential hurdles.
Tradable Assets and Instruments
Online trading offers a wide range of financial instruments, each with its own opportunities and challenges. Here are some of the most common:
- FOREX: You are reading this article because FOREX trading interests you. This type of trading involves buying and selling currencies from different countries on the foreign exchange market with the goal of making a profit. This is done through a broker with an online platform, like MT4 or MT5. FOREX brokers provide tools to traders for executing buy and sell orders in the currency markets.
- CFDs: CFDs allow traders to speculate on the future market movements of an underlying asset without actually owning or taking delivery of the asset. CFDs are traded on margin, meaning the broker allows investors to borrow money to increase leverage or the size of the position to amplify gains.
- Equities or stocks: These represent ownership in a company, and trading them involves buying and selling shares of publicly traded companies.
- Commodities: Items of value such as gold, oil, wheat and coffee can be traded through a broker or online trading platform. The best FOREX brokers in Canada should be able to provide you with access to commodities.
- Indices: These are a measure of the performance of a group of stocks or other assets. Trading indices involves buying and selling a basket of stocks or other assets that make up the index. Some key indices include the UK 250 and the Germany 40.
- Bonds: These are debt securities issued by companies or governments to raise capital. When you buy a bond, you are essentially lending money to the issuer, who promises to pay you back with interest later.
- Options: Options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time.
- Futures: These types of contracts obligate the buyer to purchase an underlying asset at a predetermined price and time in the future. This is done through a broker or online trading platform.
To start trading, take note of these vital steps:
- Determine which financial instruments you want to trade
- Research different brokers and trading platforms
- Open a trading account with a reputable broker
- Fund your account and start trading
Remember that trading involves risks, and it's important to have a solid understanding of the financial instruments you're trading and the risks that come with the territory.
| Brokers | Currency pairs | Stocks | Indices | Commodities | Crypto | ETFs |
| ICM Capital | 67 Pairs | 89 Shares | 17 Indices | 12 Commodity | 6 Coins | Unavailable |
| Tradview | 80 Pairs | 5000 Shares | 10 Indices | 10 Commodity | 30 Coins | Unavailable |
| XTB | 57 Pairs | 1848 Shares | 36 Indices | 22 Commodity | 22 Coins | 135 ETFs |
| IG | 108 Pairs | 20000 Shares | 200 Indices | 20 Commodity | 5 Coins | 200 ETFs |
| Saxo Bank | 320 Pairs | 22000 Shares | 200 Indices | 200 Commodity | 9 Coins | 6700 ETFs |
| CMC Markets | 330 Pairs | 8000 Shares | 80 Indices | 100 Commodity | 18 Coins | 200 ETFs |
| Think Markets | 46 Pairs | 3750 Shares | 15 Indices | 11 Commodity | 21 Coins | 350 ETFs |
Payments, Deposits and Withdrawals in Canada
Depositing funds into and withdrawing funds from your FOREX account is very easy. The Canadian banking industry is highly mature and safe. All payment providers are accommodated in the financial ecosystem and are allowed to offer comprehensive services. This means that local brokers accept all major payment methods. These include credit and debit cards, wire transfers, and all major eWallets.
| Method | Credit Card | Wire Transfer | Skrill | Neteller | Cryptocurrency | PayPal |
| Deposit fee | 0$ | $0 + Bank commission | 1.9% | 2.5% | Unavailable | 3.75% |
| Withdrawal fee | 0$ | $15 | 1% | $0 | Unavailable | 2% |
| Method | Credit Card | Wire Transfer | Skrill | Neteller | Cryptocurrency | PayPal |
| Deposit fee | 0$ | 0$ | 1.9% | 2.5% | $0 | 3.75% |
| Withdrawal fee | 0$ | 0$ | 1% | $0 | $0 | 2% |
| Method | Credit Card | Wire Transfer | Skrill | Neteller | Cryptocurrency | PayPal |
| Deposit fee | 0$ | $0 + Bank commission | 1% | 1% | Unavailable | Unavailable |
| Withdrawal fee | 1.5% | 30$ | 1% | 1% | Unavailable | Unavailable |
| Method | Credit Card | Wire Transfer | Skrill | Neteller | Cryptocurrency | PayPal |
| Deposit fee | 0$ | $0 + Bank commission | Unavailable | Unavailable | Unavailable | 3.4% + fixed fee |
| Withdrawal fee | 0$ | $0 + Bank commission | Unavailable | Unavailable | Unavailable | 3.4% + fixed fee |
| Method | Credit Card | Wire Transfer | Skrill | Neteller | Cryptocurrency | PayPal |
| Deposit fee | 0$ | $0 + Bank commission | Unavailable | Unavailable | Unavailable | Unavailable |
| Withdrawal fee | 0$ | $0 + Bank commission | Unavailable | Unavailable | Unavailable | Unavailable |
| Method | Credit Card | Wire Transfer | Skrill | Neteller | Cryptocurrency | PayPal |
| Deposit fee | 0$ | $0 + Bank commission | Unavailable | Unavailable | Unavailable | Unavailable |
| Withdrawal fee | 0$ | $0 + Bank commission | Unavailable | Unavailable | Unavailable | Unavailable |
| Method | Credit Card | Wire Transfer | Skrill | Neteller | Cryptocurrency | PayPal |
| Deposit fee | 0$ | $0 + Bank commission | 0$ | 2.5% | Not mentioned | Unavailable |
| Withdrawal fee | 0$ | $0 + Bank commission | 5.50$ | 0-7.5% | Not mentioned | Unavailable |
FOREX Trading Customer Service
As timing is key to FOREX trading, you must pick a brokerage firm that can provide good customer support around the clock. This most notably includes the company representatives being easy to reach, fast, and polite, which in turn will spare you having to worry about problems later. The best FOREX brokers in Canada for beginners will be able to provide you with the following:
- Quick resolution of issues
- Educational support
- Assistance with queries during volatile markets
- Account Security
- Customized advice (although not all customer service desks offer this)
- Technical assistance
- Regulatory compliance queries
Remember that in Canada, your broker must offer bi-lingual French and English services. You should check if this is available.
Recommended Brokers
| Live Chat | Phone | |||
| Available | Available | Available | Available | Available |
| Quick response | Very Fast | Very Fast | Very Fast | Very Fast |
| Live Chat | Phone | |||
| Available | Available | Available | Available | Available |
| Quick response | Quick response | Fast | Fast | Fast |
| Live Chat | Phone | |||
| Available | Available | Available | Available | Not Available |
| Quick response | Very Fast | Moderate | Moderate | Not Available |
| Live Chat | Phone | |||
| Available | Available | Available | Available | Not Available |
| Quick response | Very Fast | Very Fast | Moderate | Not Available |
| Live Chat | Phone | |||
| Available | Available | Not Available | Available | Not Available |
| Quick response | Slow | Not Available | Moderate | Not Available |
| Live Chat | Phone | |||
| Available | Available | Not Available | Available | Not Available |
| Quick response | Moderate | Not Available | Moderate | Not Available |
| Live Chat | Phone | |||
| Available | Available | Available | Available | Not Available |
| Quick response | Moderate | Fast | Moderate | Not Available |
Technical Aspects of the Broker’s Website
When it comes to sharing sensitive personal information online, such as a credit card, cyber security is paramount. You should, therefore, always look out for SSL certification and two-factor authentication (especially when registering with a new site). Remember always to install a strong password.
Ask Other Traders on Our Network
Arincen has gone to great trouble to foster a collaborative trading space where investors from all backgrounds and levels of training can enjoy being part of a vibrant and prosperous trading environment. When all is said and done, Arincen’s ambition is and always will be to simplify the world of trading for the benefit of all types of traders. Our website offers a quality spread of tools, such as our proprietary signals, breaking news, and an energetic community where traders of all experience levels can learn and profit from each other.
Which FOREX Broker has the Best FOREX Trading Platform in Canada?
Many traders find they cannot go wrong with MetaTrader’s powerful and robust MT4 platform. It is well-loved for good reason. Common features include powerful charting tools and insightful analytical packages. However, if you want to try something new, you can try a proprietary platform. If you go this way, Saxo Bank offers advanced trading features and high-performing tools with unrivaled market analysis.
Which FOREX Broker Charges the Lowest Fees and Spreads?
We found ICM’s ECN account to be unmatched for low fees and spreads. Regardless of the experience level of the trader, they can find a pricing tier that suits their needs, while still getting all the best the broker has to offer.
Which FOREX Broker Offers the Most CFDs?
According to our research, CMC Markets and IG offer the widest range of CFD selections.
Which Best FOREX Broker Offers the Most Assets?
CMC Markets and IG are the two FOREX brokers we would not hesitate to recommend for the broadest range of financial assets.
Which FOREX Broker is Best for Professionals?
Elite traders have exacting standards. They will not settle for sub-standard platforms that do not have best-in-class execution speeds, liquidity and customer support. Research resources are also a key area that experienced traders watch out for as they can make better and faster decisions with on-time accurate information. In this case, you should look to brokers that use MT4, an industry beacon that offers all the above.
FOREX Trading Scams and How to Avoid Them
Like many responsible regulators, the IIROC has a robust ongoing public awareness campaign where it broadcasts important information on its website on known scams, along with helpful remedies and contact numbers for traders to reach if they need to make a report or lodge a dispute. The IIROC also has a helpful and detailed e-book on its website dedicated to educating traders on how to avoid falling victim to scams.
One of the IIROC’s key roles is to maintain the performance of the financial system and entities in it. It also encourages informed participation by investors and consumers. With such oversight, FOREX scams are difficult to launch in a country with so many safeguards. The IIROC also has powers to ban offending firms and will not hesitate to blacklist a broker found guilty of wrongdoing.
A regulated broker adheres to a stringent set of guidelines and operational standards, designed to ensure transparency, security, and integrity in all transactions. Electing to trade with an unregulated broker amplifies the risk of financial loss, fraud, and exposure to unethical practices. For a list of the best regulators, read our article here.
Will Your Money Be Protected If Your Broker Becomes Insolvent?
The Canadian Investor Protection Fund (CIPF) provides limited protection for property held by a member firm on behalf of an eligible client. If the member firm becomes insolvent. CIPF member firms are all members of the IIROC and are automatically covered.
The CIPF covers property held by a member firm on your behalf that is not returned to you following the firm’s insolvency. Missing property can include cash, securities, and futures contracts. However, FOREX traders should be very aware that the CIPF does not cover losses resulting from, among other things, fraudulent or other misrepresentations that were made to you, or even misleading information that was given to you. In this scenario, you can see that it is entirely possible that depending on the case, you would not be covered if your broker goes under.
The Dos and Don’ts of FOREX Brokers
One of the first things a new FOREX trader ought to do is to check the extent to which the FOREX company abides by the rules and regulations governing its operation. Emphasis must be placed on what it can and cannot do.
There are seven things brokerage firms cannot do:
- The FOREX brokerage firm cannot recommend a buy or sell.
- The FOREX brokerage firm must not provide price or market expectations (rise/fall).
- The FOREX firm cannot control your financial dealings (deposit/withdrawal).
- The FOREX brokerage firm should not “manage” your portfolio under any circumstance.
- The FOREX brokerage firm cannot grant a client a bonus unless clear terms guide it beforehand.
- The brokerage firm must not use bank accounts not under its name; and
- FOREX brokerage firms cannot have or offer the service of account managers.
In short, the role of brokerage firms is strictly confined to facilitating buyers and sellers to come together toward an agreed-upon commission. FOREX brokerage firms that violate any of the seven rules should be avoided.
Recommended Brokers
Who is Arincen and What Do We Do?
Put simply, Arincen is a social networking platform that brings together traders and experts to exchange expertise and ideas. Together, we evaluate the best FOREX brokers in the world while offering a comprehensive suite of services and tools, all in one place, either via a computer or a mobile app. The platform is so rich that one can create his private portfolio of traders and experts they like and, at the same time, follow their recommendations and investment sentiments.
Further, thanks to Arincen, users can keep an eye on market-price developments, as well as the latest news. Users can also benefit from the network’s educational courses on offer, to say nothing of exciting Webinars – all done in a modern and fast-paced work environment. Get all that you need in one place, not less, not more. Our motto: We Meet to Simplify the Trading World.
Conclusion
Now is the best time to get involved in FOREX trading. The best FOREX brokers in Canada operate in a well-managed and transparent regulatory environment. Remember, the key message to take away from this article is that the FOREX brokerage firm you pick must be legally licensed and well-regulated. In this article, we give you details of who these regulators are.
Be sure to vet the broker's tools, platforms, and reputation. Make sure that you can get customer service in your local language whenever you need it. If at any stage you are unsure about what steps to take when vetting the best online brokers in Canada, you can always refer to this article.
Be sure to vet the broker's tools, platforms, and reputation. Make sure that you can get customer service in your local language whenever you need it. If at any stage you are unsure about what steps to take when vetting the best online brokers in Canada, you can always refer to this article.
Arincen’s Review Methodology
The team at Arincen collected more than 120 pieces of data covering more than 100 licensed FOREX companies. Data collection was done in three ways:
- Companies’ Websites.
- Other Websites that have ranked FOREX companies.
- A survey questionnaire (referred to here as Survey “1”) was sent to the companies invited to participate in the exercise. We have identified 13 criteria for our assessment, each containing several aspects and carrying its relative weight. These include licensing, deposits and withdrawals, number of assets, etc.
Afterwards, we validated the data by:
- Registering with FOREX companies as a secret shopper and/or as Arincen.
- Survey number “2,” in which we asked these companies’ customers for important feedback and experience.
The next step saw us evaluate and rank each company, relying on the hard work of 15 Arincen employees. We were very careful in ensuring the most accurate assessment possible, including considering different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung, etc.
To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our own research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%. To learn more about how we came up with the evaluation, please click here.
Forex Risk Disclaimer
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
FAQ
Is FOREX trading legal in Canada?
Yes, trading FOREX in Canada is legal. As long as brokerage firms comply with the provincial and federal laws by enlisting with the appropriate regulators, they can offer their services entirely legally to people residing in Canada.
What is FOREX?
The FOREX market is a place where global currencies are bought and sold. It is a large and active marketplace that requires technologically superior tools if you are to participate as a retail trader. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays.
What is FOREX trading?
FOREX trading involves buying and selling different worldwide currencies for a profit. Retail traders select a currency pair and, in anticipation of market-driven changes in value, wait for the right moment to make a sale for a profit.
What costs and commissions are associated with FOREX trading?
FOREX brokers charge any combination of commissions, spreads, and financing fees. Brokers can either charge a spread (the difference between the buy and sell price of a currency pair) and include their facility fee in the spread, or they can charge only a market rate spread and levy a commission per trade outside the spread.
Financing fees come into play if you hold your position overnight. You must pay a financing cost for the benefit of keeping your positions open for an extended time.
How important is good customer service in FOREX trading?
Good customer service is indispensable to FOREX traders as they can lose money in such a rapidly moving marketplace if they do not have ready access to a resource that can troubleshoot their problems. Customer service staff members should be readily accessible and must be well-trained to be useful in times of difficulty.
Is FOREX trading taxable in Canada?
FOREX trading is taxable in Canada. Traders are compelled to keep a close eye on their profits from this activity and report their earnings to the receiver of tax revenue at the appropriate time in the Canadian tax calendar.
Written by
Marwan Kardoosh
The Editorial Department at Arincen makes an important contribution to the world-class content that can be found on the site. Arincen’s Head of Content and Chief Economist Marwan A. Kardoosh brings with him over 24 years of experience working in the...
Edited by
Adrian Ashley
Adrian Ashley is a seasoned business and finance writer. With a corporate career spanning over 20yea...
Fact Checked by
Bahaa Khateeb
Bahaa Khateeb is currently the CEO of Arincen, a start-up Fintech company based in Haifa. Baha...
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