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Author: Samuel Lowes
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Samuel Lowes

Canadian Forex Trading

Forex trading in Canada is perfectly legal and has become increasingly popular over recent years, especially as technology has developed. It is however unregulated at a national level instead of being regulated on a region by region basis. Traders are free to choose any broker they like whether that be a local Canadian broker or one that offers its services to Canadian residents.

With so much choice, come many benefits. You can choose a broker based on several criteria. Having so many brokers on offer means that you can be more selective and find one that meets all, or most, of your requirements. Whether you are looking for good bonuses or just an excellent all-round experience you are sure to find the perfect broker for you.

How do you make sure that you find the right one, and how can you be sure that your money is safe? Well in addition to making sure you choose a broker with adequate regulation, you can also follow our recommendations and advice. We review and rate all of the Forex brokers that operate in Canada, providing you with enough information to make an informed decision.

Top Rated Forex Sites

#1 - Pocket Option: Best Overall

Pocket Option Logo
9.8
Superb
Bonus Up-to $2000 Pairs 12+
Min. Trade $1 *Payout % 92.76%
Over 130+ assets to trade now
Instant access to social trading
Single account option, for everyone
Tournament with prize of $50,000
IFMRRC is not an official regulator
Limited account funding methods
Deposit Methods
Visa Klarna PaySafeCard MasterCard
122 visited this site today
Pocket Option Review

Editors Summary

Pocket Option offers many excellent features to new and existing traders. When you check-out the various account types, you will see that they work with traders of any level – newbie, beginner, experienced, master etc. This site is so easy to use, and while CySEC does not license them, they have good feedback online and tick all of the boxes of a trusted broker. We love the ease of use and no-frills approach which is replicated with a great user experience.

#2 - Binarycent: Best Free Demo

Binarycent Logo
9.3
Excellent
Bonus Up-to $1600 Pairs 12+
Min. Trade $1 *Payout % 91.48%
Over 150+ assets to trade now
Bespoke platform for PC and mobile
Low min deposit of $0.10 per trade
Great support in multiple languages
Platform not suited to pro traders
No free demo account option
Deposit Methods
AMEX Bitcoin MasterCard Skrill
80 visited this site today
Binarycent Review

Editors Summary

Binarycent, while a relatively new broker, tick all of the boxes when it comes to trading. They are competitive and offer all of the things that you would expect. Benefits include an excellent mobile trading platform, welcome and deposit bonuses and a good support system. There are phone numbers available in many languages, alternatively, you can send a message with your details, and someone will get back to you.

#3 - Raceoption: Best Mobile App

Raceoption Logo
9.1
Very Good
Bonus Up-to $1000 Pairs 12+
Min. Trade $1 *Payout % 89.72%
Over 140+ assets to trade now
Account options for every trader
Trading available 7 days a week
Super-fast 1 day withdrawals
Demo account requires $250 deposit
UK-based, but licensed offshore
Deposit Methods
Visa AMEX Klarna Skrill
31 visited this site today
Raceoption Review

Editors Summary

It is clear to see that Raceoption mean business and that their all-around offering to traders is making them a serious competitor in the binary options market place. From their easy to use trading platform to the fact that they offer such good withdrawal terms, you can't help but feel that this broker is going to experience a lot of growth, quickly. With a base in London, reputable licensing, an acceptance of US customers they tick all the boxes when it comes what traders want.

Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Forex Sites in Canada

Canada

Using a local Canadian broker is reassuring to many. The fact that they are a "homegrown" company, licensed and regulated in the country acts as a sort of assurance that the broker is reliable. That said there are many international brokers that offer their services in Canada. These are equally as beneficial to trade with. The key is to look out for some core factors including:

Welcome Bonuses And Deals

With a market that is becoming more and more saturated with both traders and brokers, they are all competing to get your attention. To do this effectively, many brokers offer competitive bonuses. These are usually a no deposit bonus so that you can try the site at no risk to yourself or a deposit bonus to ensure that you have more money to trade with.

Customer Service

If you are new to trading, then you are probably looking for some reassurance that your questions and queries can be answered effectively and efficiently. Excellent customer support is essential if you want to be able to get hold of the company. Look for a live chat assistant. Also scroll to the bottom of the website and find the "contact" button. What options do you have to get in touch with the broker?

Mobile Trading

If you, like most of the population, like to carry out your daily transactions on the move, then you will want a broker that offers a mobile solution. You will need to find a broker that provides either an app for Android and iOS or a website that is mobile responsive (delivers a mobile version of the website). To be honest at this stage of the game, it would be unlikely that you will find many Forex brokers that don't have a suitable mobile offering.

Currency Pairs

For many, the draw of Forex is trading in their currency vs another. You might feel more comfortable dealing in CAD/USD or similar pairs. Most brokers will offer the main currency pairs as standard but not less popular pairs like minors or exotics. If you would rather have the choice then you need to select a broker that offers an extensive and varied selection.

Broker Fees And Tax

Todays Top Traders
Trader Broker Pair Profit

Unlike most countries where Forex profits are treated and taxed as income, in Canada, it is subject to Capital Gains tax. Usually this means that 50% of the profit is taxed and the other 50% is not, however, this is subject to change as with any tax laws. If you are unsure then it is best to seek the advice of a financial expert who will be able to help. Usually you can print out a copy of your trading history and take it to an accountant who will have experience in this field.

With regards to fees, there are a number to consider. Many brokers charge a withdrawal fee. This is usually a small fee charged to administer the withdrawal. Often a few dollars, it is a fixed fee per transaction. The advice here is to keep drawdowns to a minimum rather than withdrawing daily.

The main fees will be deducted before you receive any profits from successful trades and will be the commission on your trades. In addition to this your payment provider may charge a transaction fee, and you may have to pay a currency conversion fee.

Canadian Licencing

In many countries, Forex trading is overseen by one regulatory body. In Australia, this is ASIC, and in the UK it is the FCA. In Canada, however it is not that simple. There is no national regulatory body that oversees the industry; it is done on a regional basis. Here are the following regional regulatory authorities for Canada

  • British Columbia - BCSC - British Columbia Securities Commission
  • Quebec - AMF - Autorite des Marches Financiers
  • Ontario - Ontario Securities Commission

While there are no specific national regulators, the Canadian Securities Administrators implemented registration rules for Forex trading in Canada in 2009. There are also other regulatory bodies such as the CFTC, the NFA, IIROC and the CIPF that regulate specific sectors of the financial markets.

When choosing a broker that is not licensed in Canada, it is wise to look at what licensing they do have. If you want to select a broker that is licensed look for CySEC, FCA, ASIC and MiFID. These usually indicate a well-regulated broker. If you are unsure, we offer a comprehensive list of recommended brokers.

There are many international brokers that offer their services in Canada.

How we Recommend Brokers

Our job is to make your Forex trading experience a much easier one. It can take hours to trawl through the internet assessing the various Forex brokers and selecting the right one. That's why we do it for you. Our team of financial and trading experts, review the different Canadian, and international, brokers on several criteria.

They look at the overall performance of a Forex broker and not just one or two aspects. They test the functionality of the platform and if the broker offers an excellent mobile trading experience. They also look at the assets offered, the welcome bonuses and deals and the payouts. They check for licensing and regulation and that the broker is committed to providing an excellent, reliable service.

Once they have all of this information, they compile a comprehensive review of each broker and score them on the different aspects. We are committed to ensuring that our information is accurate and up to date and that it assists you when selecting the right broker for you. You can be confident that we only put our name to the best and that the shortlist that we provide will make your decision much more straightforward.

Select those that best fit your requirements, visit the sites, get a feel for each broker and then make your final decision. Finally, all that is left to do is enjoy your trading experience.

Our Review Rating System (More Info)

10% 10% 10% 15% 15% 20% 20% Pie Core
  • Account Types
  • Banking & Payouts
  • Bonuses & Promotions
  • Mobile Trading
  • Trade Types
  • Special Features
  • Customer Support
Expert Reviews

Frequently Asked Questions

FAQ

Is Forex trading in Canada legal and safe?

While Canadian brokers are regulated according to the region that they are based and operating in, there is no national regulatory body. As there are no restrictions, trading is perfectly legal and above board.

Do I need to pay fees and taxes on my profits?

Forex profits in Canada are subject to capital gains tax as opposed to income tax. Generally, this is charged on 50% of the profit. You are advised to consult a professional who will be able to help you with your tax return.

Can I test brokers before trading with real money?

Most Forex brokers offer a demo account to allow them to practise trading on a virtual platform. This isn't a live trading environment, so it lets you get used to the various functions.

Is it easy to make deposits and withdrawals?

If you have access to a credit or debit card or any other method of electronic payment, then it is simple to make deposits. Withdrawals are processed back to the source of your deposit.

Can I trade using my mobile or tablet device?

You will find that most brokers have an app or a mobile-friendly website. Remember you will also need a mobile data connection to trade freely on the move.

Top Rated Forex Site

#1 - Pocket Option: Best Overall

Pocket Option Logo
9.8
Superb
Bonus Up-to $2000 Pairs 12+
Min. Trade $1 *Payout % 92.76%
Over 130+ assets to trade now
Instant access to social trading
Single account option, for everyone
Tournament with prize of $50,000
IFMRRC is not an official regulator
Limited account funding methods
Deposit Methods
Visa Bitcoin PaySafeCard Skrill
162 visited this site today
Pocket Option Review
Risk Warning / Ad Disclosure

Risk Warning: The products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never risk money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain for referring new customers.

Meet The Author
Samuel Lowes
Samuel Lowes
Fund Manager

Contributing to the website since 2012 we are one of many consultancy projects Samuel works on. With 38 years of experience in finance, insurance and foreign exchange his combined knowledge makes him an effective operator.

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