Best Forex Broker in Canada

best forex broker in Canada

Is it necessary to choose a licensed broker in Canada?

Choosing the best forex broker is the first important step for successful trading. However, when you have multiple choices, you find yourself spending hours looking for the best broker without selecting anyone. As a Canadian trader, you may wonder why not using the best forex broker in Canada. Indeed, you might be compelled by the advantages that Canada offers to both institutional and retail investors to invest with Canadian forex brokers.

The major advantage that attracts traders to Canadian forex brokers is the Canadian Investor Protection Fund (CIPF) which offers Forex traders up to $1 million as a guarantee in the case that a brokerage firm is liquidated or goes bankrupt. Investor protection is largely higher in Canada as compared to other countries such as the UK where the FCA can only compensate £50,000 when a Forex broker is liquidated.

Apart from the investor protection fund, Canadian forex brokers failed to replicate international forex brokers. The reason behind this is the recent regulations. In the past few years, Canadian traders were not able to trade forex with IIROC regulated brokers.  A change in regulations has stopped several brokers from offering their services to Canadian citizens. In addition, though may this sounds strange, Canada is the most complicated country in the world regarding Forex broker regulation. It is the only country that requires forex brokers to adhere to different regulatory authorities to be able to operate in the country with a valid financial license.

These restrictions made Forex brokers step away and set up their brokerages in other countries and cater their products to suit Canadian regulatory requirements. The list below includes some of the best forex brokers that accept Canadian Traders

Best Forex Brokers Accepting Canadian Traders

Broker Info Bonus Open Account
AVAtrade- BEST FOREX BROKER Regulation: Central Bank of Ireland, MiFID, ASiC, BVI
Leverage: up to 400:1
Demo Account: Yes
Min Deposit: $100
$200 free bonus Visit Broker Read Review
FBS-best forex broker Regulation: IFSC and CySEC
Leverage: up to 3000:1, the highest in forex Market
Demo Account: Yes
Min Deposit: $0, $100 no deposit bonus
100% Deposit Bonus Visit Broker Read Review
grandcapital review Regulation: FinaCom and Serenity Escrow
Leverage: up to 2000:1
Demo Account: Yes
Min Deposit: $10
40% Deposit Bonus Visit Broker Read Review
hotforex-Review Regulation: FCA | SV | DFSA | FSCA | FSA
Leverage: 1000:1
Demo Account: Yes
Min Deposit: $5
100% Deposit Bonus Visit Broker Read Review

*Trading bonus are not eligible for clients registered under Trading Point of Financial Instruments Ltd and Trading Point of Financial Instruments UK Ltd

The financial products offered by the companies presented here carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose

Regulatory Authority For Forex Brokers in Canada

Canada has unique regulations as far as forex brokers are concerned. In fact, the Investment Industry Regulatory Organization of Canada (IIROC) has national responsibility for the regulation of financial markets. However, what makes things strange, is that the financial market is also regulated on a provincial level. In addition to the IIROC, there are three provincial regulatory agencies.

  • Toronto region manifested in the Ontario Securities Commission.
  • British Columbia represented by the British Columbia Securities Commission.
  • Montreal and Quebec embodied by the Autorité des Marchés Financiers

Indeed, multiple regulatory bodies in Canada made both traders and brokers confused. Both have found the regulations to be unclear and confusing. Consequently, both provincial and national bodies have tried to unify the situation leading to the introduction of new rules that guide the industry’s conduct.

With the new unified guidelines, both the IIROC and the provincial regulators use the same classification. Finally, this has improved significantly the work of Forex brokers in Canada.

Forex Brokers in Canada Under New Rules

IIROC prioritize safety;  therefore, one of the main new rules is the limitation of leverage to 18:1. Any Forex Broker licensed in Canada must stick to this rule.

Unfortunately, this addition worked against small traders. In other words, small leverage turned forex trading into an investment. Therefore, only traders with big accounts can make decent profits.

However, leverage is not always bad. One common belief with forex trading is the idea that people can easily trade and make money. Consequently, many retail traders will speculate on the movement of forex markets but they end up losing money. With high leverage, the whole account would be swept out.

Under these rules, finding the best forex broker in Canada is hard.

Is It Legal to Trade with Offshore Broker?

Up to now, there is no existing Canadian law that prevents traders from sending and receiving money from international brokers. Nonetheless, all brokers are asked to satisfy all anti-money laundering policies while sending and receiving money. Such a thing that most regulated brokers prerequisite.

Moreover, as long as multiple regulatory bodies are concerned, Canadian investors may trade with any broker they choose. However, they are asked to analyze the legal ramifications before investing with any international broker. In addition, they are required to understand all aspects of Forex trading before making the decision to opt for IIROC Forex broker or an offshore Forex broker.

Best Forex Broker accepting Canadian traders

If you are looking for the best forex broker in Canada, then the task is definitely hard. However, these international brokers below provide high-quality services. Therefore, the shortcomings of Canadian forex brokers can be compensated by these brokers. They offer services according to international market regulations. Select the best one that suits your needs.

Avatrade: Avatrade is one of the best brokers offering services worldwide. The broker is based in Ireland and has built over years a reputable authority. In addition, it is regulated by MiFID, Central Bank of Ireland, ASIC, FSC, and BVIFSC. It is among the top Forex brokers in the world with offices in New York, Dublin, Sydney, Milan, Tokyo and other locations.

Open Account

FBS Indeed builts a huge customer database that includes more than 13 million traders. The company served and opened offices in more than 190 countries. This broker is regulated by CySEC and IFSC  and based in Belize. In addition, it offers a wide range of assets which allow traders to diversify their choices.

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Grand Capital: This broker is based in Seychelles. It has built a good reputation among traders. Moreover, it is an award winner and has experience for 12 years in the forex industry. Furthermore, it is regulated by the Financial Commission (FinaCom); an independent self-regulatory organization which is dedicated specifically to Forex.

Open Account

HotForex: This broker has gathered a series of regulations over the years, one of which is FCA. Moreover, It has won multiple awards in Forex and CFDs. It is also regulated by CySEC, DFSA, FSA, FSC, and MiFID. Indeed, HotForex can be your favorite broker as a Canadian trader.

Open Account

Finally, it is not necessary to select the Best Forex Broker in Canada to trade safely. Offshore forex brokers offer many alternatives. You need only to understand how the forex market operates. Nevertheless, trading involves a high risk of losing money. Therefore, losing money by yourself is more occurred than by a broker. 

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