Best CFD Brokers In Canada
CFD brokers in Canada are a popular option with local traders. Investors can access thousands of financial instruments through CFD platforms within one of the safest regulatory environments in the world. This page will list the best CFD brokers in Canada, as well as explaining what to look for in Canadian CFD platforms, including fees, regulatory status, market access and more.
Top 5 CFD Brokers In Canada
These are the 5 best CFD brokers for traders in Canada:
- AvaTrade - AvaTrade's 1250+ leveraged CFD products span a range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on rising and falling prices in the broker’s feature-rich web and mobile platforms with market-leading research tools.
- Eightcap - Trade over 800 CFDs on popular indices, shares, forex, cryptos and commodities. Clients get premium liquidity and superior execution with servers in leading data centres. Eightcap also offers more choice than most competitors in terms of platforms with MT4, MT5 and TradingView.
- Forex.com - Go long and short on a range of popular financial markets with intuitive platforms and reliable execution. 99.76% of trades are executed in less than a second with an average speed of 0.02 seconds.
- FXCC - Trade currencies, metals, energies, indices and cryptos with flexible leverage. 24/5 customer support is available to assist new clients while the MT4 platform comes with free tutorials and user guides.
- Interactive Brokers - Trade leveraged CFDs on thousands of global stocks as well as 13 global indices, 80+ forex pairs, and London gold and silver. Leverage is available in line with regulatory requirements.
Top 3 Broker Comparison
| AvaTrade | Eightcap | Forex.com | |
|---|---|---|---|
| CFD Leverage | 1:30 (Retail) 1:400 (Pro) | 1:30 (EU), 1:500 (Global) | 1:200 (Retail), 1:500 (Pro) |
| Minimum Deposit | $300 | $100 | $100 |
| Minimum Trade | 0.01 Lots | 0.01 Lots | 0.01 Lots |
| Regulators | ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA | FCA, ASIC, CySEC, SCB | FCA, CySEC, NFA, CFTC, CIMA, CIRO, SFC |
| Visit | Visit | Visit | Visit |
#1 - AvaTrade
AvaTrade's 1250+ leveraged CFD products span a range of asset classes including stocks, indices, commodities, bonds, crypto, and ETFs. You can speculate on rising and falling prices in the broker’s feature-rich web and mobile platforms with market-leading research tools.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- FTSE Spread: 0.5
- GBPUSD Spread: 1.5
- Stocks Spread: 0.13
- Leverage: 1:30 (Retail) 1:400 (Pro)
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
About AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
Pros
- The broker offers reliable 24/5 multilingual customer support with fast response times during testing
- Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
- WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
Cons
- There is no ECN account with raw spreads
- Traders from the US are not accepted
- There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
#2 - Eightcap
Trade over 800 CFDs on popular indices, shares, forex, cryptos and commodities. Clients get premium liquidity and superior execution with servers in leading data centres. Eightcap also offers more choice than most competitors in terms of platforms with MT4, MT5 and TradingView.
"Eightcap is great for day traders familiar with MT4 and MT5 and looking to trade forex and CFDs in a secure environment. The brand is also a great pick for crypto traders with 100+ derivatives, a sophisticated market scanner, plus Bitcoin and Tether deposits."
- DayTrading Review Team
- FTSE Spread: 1.2
- GBPUSD Spread: 1.0
- Stocks Spread: $4 round turn
- Leverage: 1:30 (EU), 1:500 (Global)
- Regulator: FCA, ASIC, CySEC, SCB
- Platforms: MT4, MT5, TradingView
About Eightcap
Eightcap is a forex and CFD broker founded in Australia in 2009. The brand is popular with serious day traders for its raw spreads on 1000+ instruments and advanced MetaTrader platforms. With five global offices and ASIC regulation, Eightcap has built a strong reputation. New traders can also sign up for a live account in just a few minutes.
Pros
- Raw spreads from 0.0 pips and a low $3.5 commission will appeal to active traders
- Flexible and fee-free payment methods including cryptocurrencies
- Sophisticated platforms including MetaTrader 4 and TradingView
Cons
- Only four commodities available
- Demo account can only be extended upon request
- Cryptocrusher platform not available for Australian clients
#3 - Forex.com
Go long and short on a range of popular financial markets with intuitive platforms and reliable execution. 99.76% of trades are executed in less than a second with an average speed of 0.02 seconds.
"Forex.com is an excellent broker for active forex traders with over 80 currency pairs, tight spreads, low commissions and powerful charting platforms for day traders. "
- DayTrading Review Team
- FTSE Spread: 1.0
- GBPUSD Spread: 1.0
- Stocks Spread: 0.1% (Min Commission Applies)
- Leverage: 1:200 (Retail), 1:500 (Pro)
- Regulator: FCA, CySEC, NFA, CFTC, CIMA, CIRO, SFC
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
About Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
Pros
- Top-rated forex and CFD broker
- VPS hosting for automated trading strategies
- Industry-leading pricing on popular forex assets starting from 0.0 pips
Cons
- Investment offering varies between countries
- No copy trading platform
- $15 monthly inactivity fee
#4 - FXCC
Trade currencies, metals, energies, indices and cryptos with flexible leverage. 24/5 customer support is available to assist new clients while the MT4 platform comes with free tutorials and user guides.
"FXCC is a good option for day traders looking for wide market access with high leverage up to 1:500 and access to the reliable MetaTrader 4 charting platform. Beginners can get started in minutes with $0 minimum deposit and low trading fees."
- DayTrading Review Team
- FTSE Spread: Variable
- GBPUSD Spread: 1.0
- Stocks Spread: N/A
- Leverage: 1:500 (Retail)
- Regulator: CySEC
- Platforms: MT4
About FXCC
FXCC is a trustworthy broker regulated by the CySEC. The brokerage offers ECN trading accounts, spreads from zero pips and no commissions. The brand offers a free forex VPS alongside other additional features including a MAM account and short-term technical analysis.
Pros
- There are no deposit fees except industry-standard mining charges on cryptos
- Automated trading via MT4's Expert Advisors (EAs) are supported
- Competitive ECN spreads are available from 0.0 pips with no commission
Cons
- It's a shame that a copy trading solution is not offered for beginners or strategy providers
- FXCC's selection of day trading markets is smaller than other brands, with no share CFDs on offer
- The broker's single platform with no additional forex analysis tools is a drawback compared to many alternatives
#5 - Interactive Brokers
Trade leveraged CFDs on thousands of global stocks as well as 13 global indices, 80+ forex pairs, and London gold and silver. Leverage is available in line with regulatory requirements.
"Experienced day traders seeking a regulated broker with sophisticated trading software and very low fees should look at IB. Their range of stocks also can't be beaten."
- DayTrading Review Team
- FTSE Spread: 0.005% (£1 Min)
- GBPUSD Spread: Commission (.20 pts x trade value)
- Stocks Spread: From 0.003 per share, variable
- Leverage: 1:50
- Regulator: SEC, FCA, IIROC, SFC
- Platforms: AlgoTrader, OmniTrader, eSignal, TradingCentral
About Interactive Brokers
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Day traders can use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
Pros
- Proprietary Trader Workstation comes with powerful tools and charting capabilities
- Gives day traders unmatched access to global stocks with tens of thousands available from 100+ market centres in 24 countries
- Commission reimbursement with Toggle AI
Cons
- The TWS platform falls short in terms of technical charting
- Due to the pricing structure, this firm can be more expensive for aggressive traders who trade over $100,000 shares a day
- Accessing products like CFDs is not straightforward compared to competitors
What Is A CFD?
A Contract For Difference (CFD) is a type of derivative investment that allows traders to benefit from market fluctuations without owning the underlying asset. They are an agreement between an investor and a CFD broker to pay the difference between the initial and closing price of a position.
CFDs have been available to Canadian retail investors since October 2009, though there has been a recent rise in the number of CFD brokers operating in the country. This popularity has been driven by the straightforward, low-cost access to markets provided by CFD brokers in Canada. Traders are given exposure to the full value of an asset without having to put up the whole amount or own the underlying asset.
How CFD Brokers In Canada Work
Most Canadian CFD brokers offer a free, user-friendly platform that provides clients with a long list of assets, plus the ability to carry out market analysis and execute orders. Some of the most useful functions, which are generally offered by the best CFD brokers in Canada and the top offshore platforms, are a range of order types and a good selection of charts, indicators and automated trading tools.
The leading CFD brokers in Canada offer access to thousands of financial instruments. These might include forex pairs with the CAD, cryptocurrencies like Bitcoin, stock indices, commodities, individual shares and treasury bonds.
How To Compare CFD Brokers In Canada
Finding the best Canadian CFD broker is a subjective journey, as everyone has different requirements and goals. Some important things to look for when choosing a CFD platform based in Canada or offshore include:
Fees
Most CFD brokers in Canada make money through spreads, so for you to break even, your chosen security will need to rise by at least the spread amount. It then follows that lower spreads will provide you with more earning potential. CFD brokers in Canada can offer spreads as low as 0.2 pips on major currency pairs like EUR/USD.
There may also be other charges, such as trading fees, minimum deposits, withdrawal fees or commissions. Users should aim to consider all costs from initial deposit through to withdrawal when comparing the fee structures of different brokers.
Leverage
CFD brokers in Canada are popular because traders can access high exposure levels through leveraged trading. The Investment Industry Regulatory Organization of Canada (IIROC) has defined margin limits which are outlined in its Rule 100 document. Although Canadian leverage rates may not be as high as those in countries like the UK and Australia, their CFD brokerages are among the safest in the world, in no small part thanks to these limitations. A sample list of current IIROC CFD margin rates is available on OANDA Canada’s website.
Market Access
CFD brokers in Canada offer a wide range of CFD instruments. Be sure to opt for a broker that gives access to the markets you are interested in. The best CFD brokers in Canada will allow CFD trading on forex pairs such as EUR/USD and GBP/USD, cryptocurrencies, stock indices, commodities, shares, treasury bonds and more.
Canadian Regulation
The top CFD brokers in Canada operate under strict local regulation by the Investment Industry Regulatory Organization of Canada (IIROC). Opening an account with an IIROC regulated broker automatically provides membership to the Canadian Investor Protection Fund (CIPF), which offers traders impressive levels of protection. This includes cover against broker insolvency with reimbursements up to 1 million CAD.
If you open an account with a broker based elsewhere, check that they’re licensed by a reputable international agency, such as the Cyprus Securities and Exchange Commission (CySEC). This will help you avoid any online scams.
Bonuses
It is common for CFD brokers to offer referral scheme rewards, through which users can typically earn around $250 by referring customers who open CFD accounts. The tight regulation in Canada does limit promotions and bonuses that CFD brokers can offer, so be wary of those with deals that seem too good to be true. If in doubt, the IIROC website has clear information regarding what can be offered.
Accounts
The best CFD brokers in Canada offer a variety of account types that cater to traders of differing needs. When choosing a platform, be sure to make a thorough comparison to pick the account type best suited to your requirements. Common characteristics that vary are minimum deposits and lot sizes, spreads and available instruments.
Platforms
MetaTrader 4 (MT4), MetaTrader 5 (MT5), and NinjaTrader are the most popular platforms offered by Canadian CFD brokers. Mobile apps and web trader options are also widely available. Different platforms may also be better suited to your needs, depending on your trading style and frequency. Compare features like technical analysis tools and automated trading options when deciding which is the best broker for you.
Mobile Apps
CFD positions are often held over short timeframes, sometimes only a few hours. A mobile app will allow you to take advantage of short-term market fluctuations as you will always have your platform to hand.
The best CFD brokers in Canada have developed their own applications that replicate the functionality of traditional desktop platforms, and most will offer MT4 and MT5 mobile apps that can be downloaded alongside proprietary software.
Tools
Traders should keep an eye out for Canadian CFD brokers that offer a range of advanced tools, such as customizable indicators and algorithmic trading features. These tools will help you improve your investing techniques and understanding of the markets. The top platforms also offer extensive tutorials and educational materials, which are a great way for beginners to improve their strategies.
Customer Support
Should you run into any problems or have an important question, you’ll want to be with a Canadian CFD broker that has active customer support. The best CFD brokers in Canada offer 24/5 live chat as well as email, telephone and fax contact options. User reviews on sites like Trustpilot are a great way to gauge the reputation of a broker’s customer service.
Deposits & Withdrawals
The top CFD brokers in Canada allow users to make payments and deposits through a variety of means. These will typically include credit/debit cards, bank transfers, PayPal and e-wallets like Skrill or Neteller.
Find a platform that allows straightforward withdrawal options, ideally with low fees. The ease with which you can deposit and withdraw will improve your overall experience and lower transfer charges will maximize your profit margins.
Taxes
If you are using a CFD broker in Canada, you may be subject to Canadian tax rules. Depending on how you complete your tax return and other factors, your profits will either come under capital gain tax or business income tax. If you are reporting your profits as business income tax, you will be able to deduct any losses.
Consult a local tax advisor to get tailored information about reporting your profits.
Final Word On CFD Brokers In Canada
As well as offering access to a wide variety of markets and securities, CFD brokers in Canada are highly regulated, which means they are among the safest in the world. The strict regulation affords users impressive protection of up to 1 million CAD. However, you may still be opening yourself up to risks if you intend to use high leverage rates for your strategies. Each provider will offer different fees, market access, platforms and more, so make a thorough comparison of our list of the best CFD brokers in Canada to find the platform that’s right for you.
FAQs
What Is The Best CFD Broker In Canada?
When choosing the top CFD broker in Canada it is important to consider factors such as fees, market access, customer support and available platforms. We have compiled a list of the best CFD brokers in Canada here.
Is It Legal To Have A CFD Broker In Canada?
Yes, CFD brokers are legal in Canada but they must be registered with the Investment Industry Regulatory Organization of Canada (IIROC). IIROC has a list of the registered brokers on its website. Alternatively, you can open a CFD account with an offshore platform.
What Are The Advantages Of Having A CFD Broker In Canada?
The regulatory environment in Canada is relatively secure. Clients of CFD brokers in Canada are protected up to 1 million CAD under the Investment Industry Regulatory Organization of Canada (IIROC). However, strict leverage limitations are in place that may cause difficulties for margin trading strategies.
Do I Pay Tax If I Have A CFD Broker In Canada?
If you make a profit with a CFD broker in Canada, you may have to pay capital gains or business income tax. This must be paid before the end of the tax year on December 31st. You should speak to a local tax advisor for more information.
What Assets Can You Trade With A CFD Broker In Canada?
CFD brokers in Canada offer traders a wide variety of assets to speculate on. These will typically include forex pairs such as EUR/USD and GBP/USD, cryptocurrencies like Bitcoin, stock indices, commodities, shares and bonds.