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Best Canadian Forex Brokers 2018
Looking for the best Canadian forex brokers? Here you will find the latest and best brokers that accept Canadian customers. Forex trading in the country has always been a confusing experience for local traders due to a multi layered regulation system that differs depending on which region you are trading in. Thankfully, the future is starting to look brighter for the Canadian forex scene.
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Canadian Forex Broker Regulation
Regulation is virtually a necessity when choosing a broker; pick an unregulated broker and you could open yourself up to a multitude of problems including the loss of your capital and potential fraudulent activity. Therefore, even the often confusing Canadian forex regulation is better than nothing - but it’s still terribly confusing.
The main regulatory body in Canada is the Investment Industry Regulatory Organization of Canada (also known as IIROC). This organisation regulates the financial markets in Canada, performing reviews of current brokers, creating rules to be followed, setting minimum requirements and finally investigating any wrongdoing in the industry. This mirrors the work of regulatory bodies like the FCA or ASIC.
The problem Canada forex brokers and traders face is that there are actually three additional bodies depending on which part of Canada you live. For Toronto, financial services are governed by Ontario Securities Commission, for British Columbia it’s the British Columbia Securities Commission and finally the Autorité des Marchés Financiers rules over Montreal and Quebec.
This means that not only are there rules to follow from the IIROC - but you also have to factor in rules from three additional bodies as well. This makes trading currencies in Canada difficult - not to mention there’s an extremely low leverage of 1:18 available, which makes it hard for investors to really profit.On a more positive note, this also offers far more protection to investors against significant losses which is good news for new traders.
This means that more often than not, that Canadian investors are choosing to use offshore brokerage services. UK based brokers and US forex brokers actually enjoy a number of Canadian clients and there isn’t such a restrictive leverage in place. However, regulation is there for an investors protection, so we still strongly recommend consider a Canadian forex broker.
Outside of regulation, it’s also important to keep in mind other aspects of the trading experience. The perfect way to test any broker is by opening a demo account, which will not only give you access to the platform but all of the tools and customer service options. You will even get some practice funds to trade forex; this is also a great option for new traders looking to learn the ropes. Once you feel comfortable with your chosen broker, you can switch over to a live account which usually takes a matter of seconds.