Searching the best forex brokers in Canada might drive you nuts, especially when you are looking for a regulated broker. However, with some basic guidelines, things become handy. In this piece, I will review some renowned Canadian forex brokers, featuring their advantages and disadvantages. In the end, I’ll discuss some factors that you must consider before deciding on the selection of a forex broker.
Best Forex Brokers in Canada
#1 – VantageFX
VantageFX is one of the top-notch forex brokers offering trading services in Forex, CFDs, and indices to its clients across the globe. The company is in the business for more than a decade under the brand name of Vantage International Group. Headquartered in Cayman Island, the broker holds multiple regulations from reputable regulators, including CIMA, ASIC, and FCA. VantageFX facilitates flexible trading through its web, desktop, and mobile supported trading platforms such as MT4 and MT5.
Vantage FX also offers a wide range of educational resources, sign-up promotions, and multiple trading tools to aid purposeful trading. Social trading platforms like ZuluTrade, MyFxbook Auto trade, and Duplitrade are some other exciting options to consider opening an account with the Vantage FX.
Some other prominent features include;
- Spreads starting from 0.0 pips
- Generous leverage of 500:1
- A minimum deposit of $200 only
- PAMM/MAM – Managed Accounts
Read: VantageFX Review
| Pros | Cons |
| Quick account opening process 50% welcome bonus Super-fast trade execution Free Forex Signals Negative Balance protection | Inefficient customer services No compensation for Bankruptcy Limited tradable assets Low leverage for European Clients Offers variable spreads |
#2 – FP Markets
FP Markets is an online forex brokerage firm that offers unmatched trading services in Forex, indices, commodities, and cryptocurrencies. The company holds a license from the Australian Securities and Investment Commission (ASIC). The broker is headquarters in Sydney. With a clientele base of over a million customers across the globe, FX Markets offers cutting edge services, including tight spreads, 10,000+ tradeable CFDs, and instant trade execution. Variety of account types, user-friendly trading platforms, and enriched educational resources are some other significant features of the broker. FP Markets serves as one of the favourite brokers for both novice and seasoned traders due to its deep liquidity, low latency, and transparent trading environment.
Established in 2005, FP Markets takes privilege in offering services like minimum deposits, quick withdrawals, fast account opening process, and Islamic accounts. In addition to Web trader, the broker offers both desktop and mobile supported trading platforms.
Read: FP Review
| Pros | Cons |
| Increased liquidity with no re-quotes or price manipulation Super-fast trade execution Minimal slippage rate Supports scalping techniques Offers fast deposit and withdrawals Competitive forex fees Minimum deposits – $100 | No FCA regulation No web chat support High fee for CFD trading Does not accept US clients |
#3 – Forex.com
Forex.com takes pride in being a global market leader since 2001. With over 500 financial instruments, including stock, Forex, indices, and cryptocurrencies, the broker offers state-of-the-art trading platforms. The competitive pricing model and active trader rebate programs make the broker a superb option. In addition to CIMA, Forex.com holds multiple licenses from regulators in six jurisdictions of the world.
The UK based broker keeps clients funds in segregated bank accounts ensuring the world-class security of its clients’ financial affairs. Market analytics, occasional webinars, and free educational resources allow traders to learn Forex pro-actively at Forex.com. The company also offers the flexibility of selecting the account type that fits trader’s needs. Forex.com offers professional customer support to its clients round the clock.
Read: Forex.com Review
| Pros | Cons |
| Offers low fee structure as compared to competitors Diverse research & technical tools Multiple Regulations Support 80+ countries Wide range of currency pairs Accepts US clients | Limited options for trading cryptocurrencies Complex margin requirements Unavailability of IRA accounts Slow account opening process No protection for a negative balance Smaller leverage (50:1) |
#4 – Hot Forex
Hot Forex is an award-winning forex broker known for offering trade facilities to both individual and institutional clients. Hot Forex offers multiple trading platforms, including web trader, desktop and mobile-based platforms.
Based in St. Vincent & the Grenadines, Hot Forex facilitates its clients in 27+ supported languages worldwide. During ten years of business, the broker baskets more than 40 awards for its commendable features and services such as;
- Multiple trading instruments
- FCA, DFSA, FSCA, FSA Regulation
- VPS Hosting
- Auto Chartist tools
- 08+ account types
- 2M+ live accounts
- Bonus & Loyalty programs
The broker offers advanced risk management tools and negative balance protection to help clients stay safe in times of highest liquidity that sometimes result in unprecedented losses. Concerning the security of clients’ funds, the broker holds a Civil Liability Insurance Program for a limit of €5,000,000.
Read: Hot Forex Review
| Pros | Cons |
| Multiple Regulations Award-Winning Trading Platforms Segregated Bank Accounts Multiple Account Types Availability of Managed Accounts – PAMM | Does not accept US Clients Limited CFD products Average Customer Support High Commission on Zero Accounts Unavailability of Proprietary Platform |
#5 – XM
XM is the globally renowned broker offering trading services in a range of trading instruments, including Forex, commodities, indices, metals, and energies. The company’s client-focused approach regardless of the investment size, makes it one of the best forex brokers available around. For a clientele base of more than 3.5 million across the globe, XM offers the most advanced easy-to-use trading platforms in three variants ( Online, Desktop & Mobile). Other major features of XM include;
- Daily technical analysis
- Free market research tools
- Free daily forex webinars
- Free forex signals
- Live customer support
- Leverage (888:1)
- $5000 bonus
- 1000+ tradable instruments
Founded in 2009, the broker has its head office in Limassol, Cyprus. XM has a limited number of CFD products available that might be a concern for some traders. Still, it has a low fee structure that compensates the CFDs trading limitation. The broker offers multiple methods for funds deposit and withdrawal and has a quick account opening process. With its low deposit requirement, XM allows everyone to be a part of the broker.
Read: XM Review
| Pros | Cons |
| Offers negative balance protection Top-tier Regulations Offers demo account Rich educational resources Easy-to-use trading platforms Low fee for CFD trading Low Minimum deposit – $5 only | Financial Information is not publicly available Not listed in any stock exchange No price alerts Charges Inactivity Fee Does not accept US clients |
How Did I Select The Above Forex Brokers?
I’ve been an active trader for the last ten years. During my trading tenure, I’ve tried countless brokers. Based on my knowledge & experience, I have decided to track down the best forex brokers in Canada. After considering several factors, I’ve compiled a list of above-mentioned best forex brokers in Canada. I believe the above-listed forex brokers offer unmatched trading services in Canada. Some of the factors that I considered in my reviews are as under;
- Trading platforms
- Minimum deposit requirement
- Regulation status
- Fee & charges
- Customer support
Investment Industry Regulatory Organization of Canada (IIROC)
The IIROC is a self-regulatory organization that came into being after the merger of the Investment Dealers Association of Canada (IDA) and Market Regulation Services Inc. in 2008. The IIROC is mainly responsible for regulating forex brokers. The body has confined powers of cancellation or suspension of the licenses of brokers not complying with its rules and regulations.
The Investment Industry Regulatory Organization of Canada often faces criticism for being inactive or having the US copied regulatory framework in place. Stipulating the level of leverage that a broker could offer to its customers also falls within the scope of IIROC. In short, all active brokers need IIROC approval before they could start offering their trading services in Canada.
Read: IIROC Regulated Forex Brokers
Factors to Consider When Choosing a Forex Brokers
With dozens of brokers entering the market with time, the selection of the best forex broker could be a pain. Let me share some critical factors that you must not overlook while selecting a forex broker.
Regulation
Regulation of a broker is the most critical factor while choosing a broker. The safety of your funds and your economic well being depends upon the regulation of a broker. Non-regulated brokers barely care about any safety standards. Thus your investment with a non-regulated broker stays on stake. The worst part is that you have no legal protection in case the broker breaches the code of conduct.
Security
Signing up with a broker often follows financial and confidential transactions. You might need to fund your account or provide some personal information to the broker for account verification. So, your broker must have advanced security protocols in place. Always confirm if your prospective broker exercises web-encryption models. There is no point in signing up with a broker that doesn’t offer reasonable protection of funds and Information.
Trading Platforms
It is imperative to know that your prospective broker offers trading platforms that you can use comfortably. It must have all the basic and advanced trading features to help you gain most of it. Since you can’t always stay in front of your PC or laptop, therefore, a mobile supported version of the trading platform is essential.
Fees Schedules
Some brokers charge fixed spreads, while others come with variable spread charging. You need to compare the fee and charges of your prospective broker with its competitor. Remember, sometimes brokers with low cost offer poor trading conditions. Therefore, always make a reasonable judgment concerning the fee charges before signing up with a broker.
Trade Execution
Instant trade execution matters a lot for profitable trading. To check the quality of trade execution, you might sign up with your prospective broker with smaller funds initially. Once satisfied with the trading conditions, you can increase your investment. Faster trade execution becomes even more important if you follow particular strategies such as scalping, hedging etc.
Deposit & Withdrawals
I’ve seen many brokers that would accept deposits right away but take several days to process your fund’s withdrawal request. Profits are of no use if you can’t withdraw them in the time of need. So always read reviews of existing customers of your prospective broker to assess if the broker allows instant/speedy withdrawals.
Verdict
After considering various factors and features offered by the brokers operating in Canada, I hereby conclude that VantageFX deserves the first position in my list of best forex brokers in Canada. Owing to various factors such as leverage, minimum deposit requirement, trading fees, trade execution and regulations, I find VantageFX to be the best broker for trading in Canada.
Read: Forex Trading In Canada
