Best Forex Brokers Canada 2023
The Canadian Financial Market
The financial markets in Canada have a relatively long and stable history, with the Toronto Stock Exchange (TSX) having grown to become the largest in Canada. In addition to the TSX, traders in Canada also have access to two alternative stock exchanges. NASDAQ Canada is based in Montreal, Quebec, while the Canadian Securities Exchange (CSE) is run by CNSX Markets Inc. and has its base in Toronto, Ontario.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best Online Brokers for Canada
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FOREX.com
- 9.3/10 Overall
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AvaTrade
- 8.6/10 Overall
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | 1.0 (July 2022) |
All-in Cost EUR/USD - Active | 1.0 (July 2022) |
PayPal (Deposit/Withdraw) | Yes |
Skrill (Deposit/Withdraw) | No |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Highly Trusted |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | 0.91 (Aug 2020) |
All-in Cost EUR/USD - Active | 0.61 (Aug 2020) |
PayPal (Deposit/Withdraw) | Yes |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$0 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Average Risk |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | 0.827 (August 2022) |
All-in Cost EUR/USD - Active | 0.827 (August 2022) |
PayPal (Deposit/Withdraw) | No |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$5 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | 1.2 (August 2021) |
All-in Cost EUR/USD - Active | 0.9 (August 2021) |
PayPal (Deposit/Withdraw) | No |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | 0.6 (Sept 2021) |
All-in Cost EUR/USD - Active | 0.6 (Sept 2021) |
PayPal (Deposit/Withdraw) | No |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | 1.0 (Aug 2022) |
All-in Cost EUR/USD - Active | 0.76 |
PayPal (Deposit/Withdraw) | Yes |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$250.00 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | N/A |
All-in Cost EUR/USD - Active | N/A |
PayPal (Deposit/Withdraw) | No |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
0 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
Trusted |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | N/A |
All-in Cost EUR/USD - Active | N/A |
PayPal (Deposit/Withdraw) | No |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
Minimum Initial Deposit
$100 |
Trust Score Trust Score is a numerical rating (from 1 - 99) that represents a broker's overall trust.close
High Risk |
Cost & Fundingexpand_moreexpand_less
Average Spread EUR/USD - Standard | N/A |
All-in Cost EUR/USD - Active | N/A |
PayPal (Deposit/Withdraw) | No |
Skrill (Deposit/Withdraw) | Yes |
Visa/Mastercard (Credit/Debit) | Yes |
With respect to derivatives, the Montreal Exchange (MX) is located in Montreal, Quebec and hosts trading on futures and options contracts based on stocks, indices, forex pairs, ETFs, interest rates, and energy commodities. Furthermore, ICE Futures Canada is situated in Winnipeg, Manitoba, and allows trading in canola (rapeseed) and western barley futures and options on the ICE platform.
Forex traders will be familiar with the Canadian dollar (CAD), nicknamed the Loonie, as Canada’s national currency. The CAD was also ranked as the fifth most popular reserve currency in 2017, amounting to approximately 2% of total global reserves. The Canadian dollar has historically benefited from Canada’s economic soundness, as well as its political and legal stability.
Factors that influence the Canadian markets include the price of key commodities exported by Canada, like oil and gold, since roughly 30 percent of Canada’s GDP comes from exports, mostly to the United States. Oil remains Canada’s largest export and a key strategic global commodity despite widespread efforts to reduce dependence on fossil fuels.
Trade tariffs imposed by the United States have been a recent issue for Canadian markets and the CAD, as has the renegotiation of NAFTA. This especially hit the TSX in 2018 due to the fact that so many listed companies depend on international trade.
The recent legalization of cannabis has also spurred growth in that sector, and a series of hostile takeovers and attempts in the cannabis and oil industries have shaken up the Canadian stock market somewhat by causing unusual volatility in affected share prices.
Financial regulation in Canada for online forex and contract for difference (CFD) brokers falls under the Investment Industry Regulatory Organization of Canada (IIROC). The OSFI coordinates regulatory activity, sets regulatory policy, and oversees financial institutions.
Trading in Canada
In the Canadian financial market model, the CSE has a continuous auction market for issues it lists, as well as for issues listed on stock exchanges elsewhere in Canada. The exchange’s high-performance and low latency trading system ranks orders by price, broker, and time. The CSE regularly adds services for traders that include risk management and routing services aimed at helping them meet their regulatory and client obligations.
When looking for an online broker to trade forex or CFDs with, make sure to choose a well-regulated broker that has a strong reputation with clients, since they should be suitable for entrusting a margin deposit with them.
Online brokers generally offer several trading accounts for traders, including:
- Forex Trading: Exchanging one currency for another forms the basis of forex trading. Exchange rates fluctuate as one currency rises or falls relative to another in particular currency pair. The popularity of forex trading has expanded greatly once online trading became possible. The forex market is the most liquid and largest financial market globally and had a daily turnover of $5.1 trillion/day in April 2016, according to data compiled by the Bank for International Settlements (BIS). The Canadian dollar was ranked sixth among the most actively traded currencies by the BIS in 2016, making up around 5.1 percent of the market’s daily turnover and up from 4.6 percent in 2013.
- CFD Trading: Making transactions in derivative financial instruments known as contracts for difference (CFDs) allows traders to speculate on the future of their underlying assets. Such assets can consist of a currency pair, commodity, stock, stock index or another financial instrument.
- Demo accounts: Funded with virtual money, these accounts can be used to practice trading, test a strategy, or check out a broker’s services and platform. Find out more about opening demo accounts here.
- Islamic accounts: These are suitable for traders who wish to trade in an account that conforms to Sharia law. Find out more about Islamic trading account.
Opportunities of Trading in Canada
Although Canada was only ranked 22nd for the ease of doing business by the World Bank, the country ranked 12th for getting credit and 11th for protecting minority investors, so this indicates a relatively favorable environment for traders.
Furthermore, according to Invest in Canada, Canada has one of the world’s strongest financial services sectors, with all forms of financial institutions well represented. In addition, foreigners had directly invested a cumulative amount of $121.5 billion in the country’s financial and insurance industries as of 2016.
Given the country’s prudent regulatory environment, this broad and stable financial base suggests decent growth opportunities for investors. The notable progress of the newly-legalized recreational cannabis industry has also provided an unusual opportunity for traders and investors alike.
Challenges of Trading in Canada
Since Canada is so dependent on foreign trade, especially with the United States, its economy can be harmed substantially by tariffs, trade wars or the failure of major trade agreements. Such shocks can affect the USD/CAD exchange rate considerably when announced, thereby challenging forex traders looking for more orderly markets.
In a recent development, Reuters reported in April 2018 that Canada’s TMX stock market partially shut down, which halted trading over an hour ahead of time. The internal technical issues involved were fixed, but this worried some operators into considering different trading channels.
Summary
Many traders find Canada and its financial markets favorable to operate in due to the country’s relatively stable economy and political structure. When searching for a broker to trade through in Canada, people should check to see that they offer a suitable range of asset classes, a decent trading platform, strong regulation, and adequate financial security for a margin deposit.
BrokerNotes.co 2023 Overall Rankings
To recap, here are our top forex brokers for 2023, sorted by Overall ranking.
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Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
About the Editorial Team
Marcus Taylor
BrokerNotes was founded in 2014 by Marcus Taylor, founder and CEO of Venture Harbor, a venture studio in Oxford that develops innovative online tools & technology across a range of sectors.