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Author: Jessica Green
Financial Analyst
Jessica Green

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 - Vantage FX: Best Overall

Vantage FX Logo
9.8
Superb
Bonus Up-to $2000 Pairs 80+
Min. Trade $1 *Payout % 92.76%
Over 80+ pairs to trade now
Established, with ASIC licensing
Added benefits for prolific traders
Social and copy trading available
Customer support office hours only
Website navigation not the best
Deposit Methods
Visa AMEX Klarna MasterCard
152 visited this site today
Vantage FX Review

Editors Summary

Whether you are looking for FX trading that is suitable for a beginner or you have more experience and are looking to invest more, Vantage FX makes an excellent all-around choice. As one of the few brokers to offer a deposit bonus for adding funds of over $1,000, you can also enjoy added incentives. With strict regulation from ASIC and a good reputation with good reviews across the board, there is no reason for Vantage FX not to be on your shortlist.

#2 - InstaForex: Best Free Demo

InstaForex Logo
9.3
Excellent
Bonus Up-to $1600 Pairs 100+
Min. Trade $1 *Payout % 91.48%
Over 100+ pairs to trade now
Adapted for worldwide Forex traders
Website packed with information
Unique educational tools & features
Mobile apps are resource-hungry
All withdrawals generate a fee
Deposit Methods
Bitcoin MasterCard Neteller Skrill
85 visited this site today
InstaForex Review

Editors Summary

InstaForex has a history dating back to 2007 and while some brokers remain static, this one has always moved forward. It has always reacted appropriately to the changing economic and regulatory needs of clients, hence the decision to ‘split’ into two entities. For anyone, in any part of the world, the InstaForex brand is one to add to your shortlist of brokers. We rarely get to review a broker that has so much to offer to its clients.

#3 - IronFX: Best Mobile App

IronFX Logo
9.1
Very Good
Bonus Up-to $1000 Pairs 90+
Min. Trade $1 *Payout % 89.72%
Over 90+ pairs to trade now
Regulated, with 3 ‘Tier 1’ licences
8 different accounts to choose from
Contests for demo and live traders
No crypto trading pairs offered
Website difficult to navigate
Deposit Methods
AMEX PaySafeCard MasterCard Neteller
31 visited this site today
IronFX Review

Editors Summary

Apart from no obvious deposit bonus, this broker seems to tick all of the boxes for both new and experienced traders. Their trading platform is reliable and suitable for all levels of traders. They have a number of account options to choose from, and they offer plenty of useful insights into the world of Forex trading. With licensing and regulation from some of the world's most recognised financial regulators, they are one to consider.

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 - Vantage FX: Best Overall

Vantage FX Logo
9.8
Superb
Bonus Up-to $2000 Pairs 80+
Min. Trade $1 *Payout % 92.76%
Over 80+ pairs to trade now
Established, with ASIC licensing
Added benefits for prolific traders
Social and copy trading available
Customer support office hours only
Website navigation not the best
Deposit Methods
AMEX Klarna PayPal Neteller
115 visited this site today
Vantage FX 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
Jessica Green
Jessica Green
Financial Analyst

Jessica has written for us for 5 years and offers a unique perspective due to her having worked in the financial industry internationally. In fact, Jessica has worked in a staggering 8 countries including Germany, China and the USA.

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