With that in mind, leverage is higher for major currencies and lower for minor and exotic pairs due to their increased volatility. The CIPF is a non-profit program launched by the regulators across all provinces and territories of the country. It should be mentioned that this policy protects you only in case your broker files for bankruptcy. This compensation is not applicable if clients lose their funds through trading or because of fraud. To ensure your chosen broker is a member of the scheme, you can directly call the CIPF or talk to your investment advisor.

Speaking of fraud, scams are uncommon at reliable Canada-friendly trading websites because brokerages that violate the regulatory framework risk heavy penalization and license revocation. While this may not sound like a great comfort for the affected parties, such penalizations aim at preventing brokerages from cheating their customers in the first place.

Lastly, each prospective customer is expected to meet the minimum-income, net worth, and assets thresholds as stipulated by their provincial regulatory body. This makes it difficult for some clients to enter the Forex markets because they do not have sufficient capital.

Forex trading | CFD trading | Trade FX Online | Currency Trading | Canada

As previously mentioned, there are a total of fifteen regulatory bodies to oversee Forex trading activities in Canada. It controls the brokers and all trading activities on the equity and derivatives markets across the country. As the main watchdog, the IIROC has the right to fine brokers or suspend their licenses if they violate its regulatory framework. The regulator conducts adequate oversight to ensure all Canada-friendly brokerages operate in full compliance with its framework and high standards.

Other than that, each province has its own regulator. In British Colombia, Forex trading contracts are regulated as securities and fall under the jurisdiction of the British Colombia Security Commission. Canada-friendly brokerages provide their customers with various trading instruments including foreign exchange trading, indices, stocks, commodities, cryptocurrencies, and exchange-traded funds ETFs. However, before you can start trading for real money, you will have to fund your live account. Each brokerage has its own recommendations as to the minimum starting capital customers need to begin their trading experience.

The good news is Canadian brokers give their clients a choice from many different methods of payment. Debit and credit cards by Maestro, Visa, and Mastercard are broadly available across all reputable Canada-friendly providers of Forex trading. This is the preferred method of many traders from the Great White North due to its convenience and time-efficiency.

Best Forex Brokers in Canada:

Wire transfers are significantly slower than card payments as they take between two and five business days. Checks are also readily accepted by Canada brokers. However, they rank among the slowest payment methods because they require between five and ten business days. Many websites support electronic funds transfers, commonly known as EFTs.

This method enables you to move funds directly from your online banking balance to the bank account of the brokerage.

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Needless to say, the bank account should be in your name for you to initiate an EFT transaction. Digital wallets like Skrill and Neteller are also commonly accepted. Canada customers can register their live accounts in CAD as the base currency to avoid conversion charges.

Available trading software and tools can differ significantly between Canada-friendly brokerages, although many prefer to use the independently developed platforms of MetaQuotes Software. The latter has designed two trading platforms, each one serving a different purpose. The first option is the MetaTrader 4 MT4 software which has acquired the status of a gold standard among traders worldwide. It is available for retail trading through specific Canada-friendly brokers. The platform is optimized for trading on the Forex markets. Among its most distinctive traits are its easy deployment and intuitive design.

MetaTrader 4 is ideal for beginner traders. They can benefit from great functionalities such as copy trading and auto-trading with the help of the Expert Advisors. The software also appeals to well-versed traders who can take advantage of its advanced charting capabilities and tools for technical analysis.

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Available in dozens of languages, MetaTrader 4 can be installed on a variety of desktop and mobile devices. It centers around the Forex markets. It supports more timeframes compared to its predecessor and has tons of charting options, in-built technical indicators, analytical and graphical objects.

The newer platform was designed in the MQL5 programming language. This enables traders knowledgeable in coding to create custom-made technical indicators. MetaTrader 5 is considered a better option for Canadians who trade with multiple brokers. It allows them to move between multiple accounts with great speed, ease, and efficiency. Both platforms are available for free download.

However, Canadian traders, who do not feel like installing additional software on their devices, can execute their trades straight in their browsers thanks to the broad availability of the MetaQuotes WebTrader. The web-based version gives you instant access to the markets via most browsers and operating systems. It upholds the highest security standards as all data transmitted between you and your brokerage is heavily encrypted.

The browser version also allows you to execute trades with a single click.

3 Best Forex Brokers for 2020

Similarly to the downloadable platforms, WebTrader is equipped with multiple timeframes ranging from a minute to a month , detailed trading history, technical indicators, and graphical objects. Data compiled by Statista shows that Canadians are avid smartphone users, with the number of people who own mobile phones exceeding 25 million in In the US and several other countries , it is illegal to send funds to overseas FX brokers. The US also enforces strict regulations on international payments due to threats to national security; hence, US citizens have very limited freedom while moving their funds around.

On the other hand, Canada does not have any such strict regulations, and traders are free to move their capital to any broker, provided that both the trader, as well as the broker, keeps accurate statements and records of transactions for future verification. Disregarding the fact that Canadian citizens have the option of choosing any Forex broker of their choice, choosing FX brokers and other related companies in Canada provides unprecedented levels of security of client funds.

The one thing that worries all investors worldwide is the security of funds, as there is a significant chance of a broker going bankrupt due to any unexpected market volatility. Modern regulators factor in market eventualities while developing their regulatory guidelines, which help in preventing cases of broker insolvency, but no broker is completely safe against liquidation or bankruptcy.

Under such circumstances, it makes sense for a trader to choose some of the best Canadian Forex brokers if they wish to trade with large sums of money. Due to the multiple regulatory agencies in Canada and the lack of laws that do not force brokers into setting up an office in Canada, it is indeed difficult to get a large number of choices for Forex brokers from Canada. Nevertheless, there are a few FX brokers that have set up their offices in Canada to cater to Canadian investors, and some of these branches are from established mainstream companies.

These brokers enable traders to enjoy all the benefits of Canadian regulation along with the expertise and popularity that they hold in the international trading market. A majority of these brokers have an excellent reputation in the industry and are thoroughly committed to the welfare of their clients. There are hundreds of brokers that offer the chance for traders to test the market using a small initial capital and a higher margin requirement. The maximum leverage has not limit for Canadian traders, as traders can take advantage of even leverage offered by some brokers.

Legal Canadian Forex Trading and Trading Platforms 2021

Although it is possible to use a higher leverage, traders are recommended to exercise caution while trading the markets with higher leverage. It is highly recommended to start with a slightly higher initial deposit and a lower leverage. Canadian regulatory authorities have a highly descriptive set of guidelines that determine broker regulation, which is amended according to new findings and market conditions.

Canada takes inspiration from other regulatory agencies from around the world to create a set of fair trading conditions that are suitable for both brokers as well as traders. Although Canada does not have a centralized regulatory authority for financial entities, the numerous smaller organizations are more than capable of dealing with financial irregularities, and financial malpractice can attract strict sanctions and substantial penalties. Of course, international and overseas brokers cannot be supervised or controlled, but the Canadian Government is proactive in ensuring that its citizens are made aware of potential scams that may lead to consumer abuse of theft.

Canada Forex Legislation

Therefore, Canadian regulators regularly seek out all instances of financial malpractices by keeping their investors informed about such occurrences from time to time. The Government also encourages investors to come forward with recommendations or concerns, so that the appropriate authority can take action if possible.

Brokers that are regulated by Canadian regulators are required by law to be a member of the CIPF, which renders a further safety net to investors while trading with large sums of money. Therefore, when it comes to investor protection, Forex Brokers Canada do not disappoint. If you are already trading with a reliable broker, it does not make any significant impact by moving to a broker based in Canada, as the CIPF compensation is only available for Canadian citizens.

On the other hand, if you are from Canada, switching your investments to a Canadian-based broker will let you enjoy several benefits and make you are part of the CIPF program. Apart from that, traders with a smaller trading capital are better off with their existing brokers, as they will have not visible advantages of shifting to another broker. No, forex trading is not illegal in Canada. There are strict rules and guidelines in place to protect Canadian traders for both national and regional levels.

It is best to check with your provincial laws before considering forex trading in Canada. Forex markets in Canada are subject to both national and regional regulation. Additionally, Quebec, British Colombia, and Ontario each have regional regulatory bodies that enforce forex broker rules and standards. Yes, Canadian traders can accept forex trading bonuses. This includes welcome bonuses, friend referral schemes, and promotions. It is important to always read the terms and conditions when accepting a bonus as they will include any rules and limitations involved with the offer.

Many companies offer forex trading to Canadian clients. Some of the important things to consider when looking at a forex broker in Canada include licensing, withdrawal time, support availability, and the number of trading instruments available.



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All of our recommended brokers excel at such criteria and more. This depends on which broker you sign up with. Some brokers will accept deposits in CAD but restrict you to other currencies, such as the USD, for your trading account.