Forex trading, which is the exchange of one currency for another, is not only legal but also very popular in Canada. The potential of making a profit on this market, considered the largest in the world and the most active, is high, however, so it’s the risk.
The forex market is known for having very high liquidity, being also opens 24 hours a day 5 days a week. Obviously, this means that currency is being exchanged in one place or another at all times, day or night.
There is a wide variety of forex brokers in Canada, making it quite important to choose wisely when looking into starting working with a different broker.
While Forex trading is indeed legal in Canada, to choose to invest safely, traders must keep in mind that the most important aspect to consider when talking about choosing an online forex broker is the fact that they need to be registered with the IIROC, which stands for Investment Industry Regulatory Organization of Canada.
The IIROC is the national overseeing body, but each region has different regulatory bodies. In Tronto, there is the Ontario Securities Commission, in British Columbia, we can find the British Columbia Securities Commission, and finally in Montreal & Quebec, the so-called Autorité des Marchés Financiers.
Basic of Forex trading
When talking about forex we find currency pairs that are the two currencies that traders want to exchange.
Some of these pairs are very popular, like euros and dollars, but others are less common or even called exotic.
To learn how forex works, traders need to be familiar with spreads. For whatever currency pair there is a spread that can be very low, especially with popular pairs, since volatility is higher. More rare currency pairs may have wider spreads.
These spreads are the commission the broker takes on that exchange. Understanding spreads should be part of any new forex investor’s learning curve.
Best Forex Brokers in Canada
Canada is a country where forex trading is very popular and according to the expert is also one of the countries with the best regulations in place to protect the traders and their investments.
All of our recommendations are registered with the IIROC. But, what does that mean?
The broker has to show they have enough liquidity to cover the rare case of failure. This means the traders’ money is safe.
Verifying their subscription is a must before committing to a broker. It’s very easy, either from the website of the broker or from the listing on the IIROC website.
The most important part of choosing a Canadian Forex broker is that they are strongly regulated, assuring the protection of their investors. Canadian regulations rank among the best in the world.
The following are the best Forex brokers in Canada, chosen among the many available to traders and investors.
- This broker has an excellent reputation in Canada and around the world for offering reliable services and an outstanding platform to trade, as well as access to different markets and assets.
- com. Another well-known forex broker that offers an interesting variety of services. Forex.com earned the title of the best Forex broker in Canada 2021.
- Oanda. This broker is recognized for their excellent research and educational tools, as well as detailed trading tools that have made them a household name in Canada.