Many forex trading brokers in Canada offer limited trading capabilities that can make it difficult to find a broker that provides the right features, account types and minimum deposit for you. Our review team of industry professionals have put together a list of the best Canadian forex brokers that are all well-regulated and designed to suit various trading strategies and goals.
We’ve rounded up a variety of the best forex brokers regulated in Canada to provide you with a selection of highly-rated and award-winning brokers, some designed for specific trading types and some that are all-rounders for those new to trading.
Forex trading involves taking large financial risks, which is why we take the time to try and test the best forex brokers for ourselves to provide you with an honest, informative and trusted view on each broker included.
Round-up of the best Canadian forex brokers
- AvaTrade: best for fixed spreads
- Forex.com: best for the overall trading experience
- Vantage: best for day traders
- Oanda: best for beginners
- CMC Markets: best for CFD trading
- Interactive Brokers: highest amount of markets
- FXCM: best service quality
- EasyMarkets: great trading flexibility
- OctaFX: best for forex algo-traders
These top brokers will provide a full range of trading capabilities for you to get the most out of the forex market in Canada. As expected with any major forex broker, the Canada-based brokers we have listed offer some of the most competitive fees, and access to the best trading platforms and features.
This, combined with providing the widest range of markets and trading products for you to choose from, should help you to cultivate a successful career as a forex trader in Canada.
Best Forex Brokers in Canada: Our Comparison
Here’s a summary of which forex brokers are available in Canada along with key information about their minimum deposits, whether they are IIROC regulated and any regional restrictions. As you may have noticed, every broker that is locally regulated has no problem accepting customers throughout the country (with the exception of those who are residing in Alberta), and may follow the Canadian investor protection fund we’re going to mention in the next section of the article.
On the other hand, other brokers that are not regulated by the Canadian authorities and are still allowed to operate within the country, may face regional restrictions when it comes to accepting new clients.
|Feature||Min. Deposit||IIROC||Regional Restrictions|
|Vantage FX||$200||No||AB, BC|
|Oanda||No minimum deposit||Yes||AB|
|CMC Markets||No minimum deposit||Yes||AB|
|Interactive Brokers||No minimum deposit||Yes||AB|
|EasyMarkets||$200||No||AB, BC, ON, MB, QC|
- AB – Alberta
- BC – British Columbia
- ON – Ontario
- MB – Manitoba
- QC – Québec
- SK – Saskatchewan
Is Forex Trading legal in Canada?
This is a question that many people ask, regardless of which country they are forex trading in. With Canada, while there are some points we will outline here, forex trading in general is legal. The forex market in Canada is regulated by the IIROC (Investment Industry Regulatory Organization of Canada). The IIROC are the national regulator, though each region of Canada has their own local regulator which is where things can get more complicated and we will take a look at this below.
For this reason, Canadian customers can face some challenges getting accepted by brokers especially if that broker is not IIROC regulated. In fact, when a broker is not IIROC regulated, each regional regulation has the power to decide whether or not a broker should be allowed to offer its services within the area.
Is Forex Trading legal in Alberta?
Things get a little tricky as we mentioned, in Alberta. Forex trading is legal, but you must qualify as an “accredited investor” whether or not the broker is IIROC regulated. This is something similar to the qualification as a professional trader in Europe and you must satisfy at least one of the following conditions:
- Qualify as a bank or any other financial institution
- Have a net income of at least $200.000 in the past 2 years
- Have at least $1.000.000 in your financial portfolio
- Have at least $5.000.000 invested in properties
If you can satisfy one of these criteria, then you will have no problem being classified as an accredited investor in Alberta.
How to trade forex in Canada
Things go back to normal in this respect. The steps for starting in forex trading within Canada are generally the same as in another country. You should be sure to provide the following:
- Proof of identity typically in the form of your passport is best.
- Proof of residence through a utility bill or bank statement within the last 3 months is usually best.
From there, you will be free to fund and trade on your fully verified account.
What Canadian traders should look for in a forex broker
As a Canadian forex trader, there are indeed some things to watch out for that may be accepted in other countries but not Canada.
Binary options trading for example, is illegal in Canada, whereas spread betting is in fact legal for Canadian traders. Derivative products like CFDs, while they are not legal with the neighbors in the USA, are legal to trade in Canada. Cryptocurrency trading is also legal in Canada and very much enjoyed by Canadian traders.
Restrictions on leverage and other trading conditions are also somewhat lenient in Canada. Leverage can generally reach up to 50:1, and while negative balance protection is not mandatory as it is in Europe, it is still generally offered by top brokers along with the use of segregated bank accounts.
With those points noted, here are a few tips to follow when choosing your forex broker in Canada:
1. Look for forex brokers regulated in Canada
This point goes for every place, you should always be on the lookout for the best regulation. The Canada IIROC is the national regulatory body and very trusted in Canada, so much so in fact, that brokers offering their services in every Canadian province must be regulated by them. This is a great thing to make sure you have in place to improve trust.
Additionally IIROC brokers usually follow the Canadian Investor Protection Fund program (CIPF), meaning that in case of insolvency the trader will get refunded a certain amount of money depending on the CIPF Terms and Conditions.
2. Try to look for brokers that offer CAD currency
We all want to avoid fees as much as possible. This means trying to choose a broker that facilitates CAD deposits and base currency. It will save you on commissions and fees from both the broker and your bank. Luckily, most of the Canadian forex brokers already facilitate this.
3. First time trading? Look for Negative Balance Protection
Negative balance protection basically can prevent you from losing more than you have in your account. This could happen in rare cases where the market is volatile and particularly if you are new to trading. So, even though it is not mandatory in Canada, it makes sense for you to find and choose a broker that offers this protection for your own benefit. This is another great layer of protection after the investor compensation fund already available with most Canadian brokers.
How to verify if a forex broker is regulated in Canada
One of the last steps before trading and once you have found a broker that ticks all the boxes for you, is to verify their regulation. This is simple to complete and means heading over to the IIROC official website, and checking the IIROC Register there using the company name. This name you can typically find at the bottom of your brokers homepage.
Is forex trading taxable in Canada?
The last question is are your forex trading earnings taxable in Canada. Yes, they are. You will have to pay capital gains tax on any profits in this respect. The typical tax on these earnings is also known to be quite high in Canada so you should expect to pay around 50%.
Forex Brokers in Canada FAQs
What are the best forex brokers in canada?
The best brokers in Canada are: 1. AvaTrade – 2. Forex.com – 3. Vantage – 4. Oanda – 5. CMC Markets – 6. Interactive Brokers – 7. FXCM – 8. EasyMarkets – 9. OctaFX.
How can I trade Forex in Canada?
If you’re not an Alberta resident, it’s very easy to get started: choose an IIROC broker, verify your profile and trading account, and deposit the required amount to start trading.
Is forex trading illegal in Canada?
Forex is completely legal in Canada. The only state where trading is facing limitations is Alberta, where only professional and institutional traders are allowed to trade forex and other assets.
Is IG broker available in Canada?
No, IG Markets is not available in Canada at the moment. It’s not regulated by IIROC, and it doesn’t accept traders based in Canada.