Best Forex Brokers In Canada 2023
The best forex brokers in Canada offer access to foreign exchange markets with oversight from a trusted regulator, such as the IIROC. The top accounts also offer tight spreads on forex pairs with the CAD, alongside competitive commissions, margin trading, and user-friendly platforms and apps.
This guide explains how to compare forex brokers that accept Canadian traders in 2023. We have also reviewed and ranked the best forex brokers in Canada directly below to help you get started.
Top 5 Forex Brokers In Canada
We have tested hundreds of brokers and found that these are the 5 best forex brokers for Canadian traders:
- AvaTrade - AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
- Forex.com - Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
- Eightcap - Trade 50+ major, minor and exotic pairs with an award winning platform. Users get institutional-level prices with spreads from 0.0 pips and low commissions. The VPS will also serve high-volume, active day traders.
- FXCC - FXCC offers leading fees compared to alternatives with spreads as low as 0.0 pips and $0 commission. Over 70 currency pairs are also available, providing more opportunities than most competitors.
- Interactive Brokers - Trade 85 major, minor and exotic forex pairs via CFDs on IB's FXTrader platform with tight spreads and low commissions, or trade forex on the spot market. They offer more FX assets than almost any competitor.
Top 3 Broker Comparison
| AvaTrade | Forex.com | Eightcap | |
|---|---|---|---|
| Forex Assets | 50+ | 80+ | 50+ |
| EUR/USD Spread | 0.9 | 1.0 | 1.0 |
| Forex App Rating | |||
| Minimum Deposit | $300 | $100 | $100 |
| Regulator | ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA | FCA, CySEC, NFA, CFTC, CIMA, CIRO, SFC | FCA, ASIC, CySEC, SCB |
| Visit | Visit | Visit | Visit |
#1 - AvaTrade
AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
"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
- GBPUSD Spread: 1.5
- EURUSD Spread: 0.9
- EURGBP Spread: 1.5
- Total Assets: 50+
- Leverage: 1:30 (Retail) 1:400 (Pro)
- 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
- 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
- There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
Cons
- There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
- There is no ECN account with raw spreads
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks
#2 - Forex.com
Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
"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
- GBPUSD Spread: 1.0
- EURUSD Spread: 1.0
- EURGBP Spread: 1.0
- Total Assets: 80+
- Leverage: 1:200 (Retail), 1:500 (Pro)
- 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
- Low minimum deposit of $100
- Free demo account for prospective traders
- Beginner-friendly web platform and mobile app
Cons
- $15 monthly inactivity fee
- Investment offering varies between countries
- No copy trading platform
#3 - Eightcap
Trade 50+ major, minor and exotic pairs with an award winning platform. Users get institutional-level prices with spreads from 0.0 pips and low commissions. The VPS will also serve high-volume, active day traders.
"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
- GBPUSD Spread: 1.0
- EURUSD Spread: 1.0
- EURGBP Spread: 1.0
- Total Assets: 50+
- Leverage: 1:30 (EU), 1:500 (Global)
- 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
- Flexible and fee-free payment methods including cryptocurrencies
- Sophisticated platforms including MetaTrader 4 and TradingView
- Strong trading education and analysis including forex guides and online webinars
Cons
- Only four commodities available
- Cryptocrusher platform not available for Australian clients
- Demo account can only be extended upon request
#4 - FXCC
FXCC offers leading fees compared to alternatives with spreads as low as 0.0 pips and $0 commission. Over 70 currency pairs are also available, providing more opportunities than most competitors.
"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
- GBPUSD Spread: 1.0
- EURUSD Spread: 0.2
- EURGBP Spread: 0.5
- Total Assets: 70+
- Leverage: 1:500 (Retail)
- 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
- The 'Trader's Corner' Blog and other free educational resources will suit newer day traders
- The broker is trusted and licensed by the CySEC, a top-tier European regulator
- Competitive ECN spreads are available from 0.0 pips with no commission
Cons
- 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
- It's a shame that a copy trading solution is not offered for beginners or strategy providers
#5 - Interactive Brokers
Trade 85 major, minor and exotic forex pairs via CFDs on IB's FXTrader platform with tight spreads and low commissions, or trade forex on the spot market. They offer more FX assets than almost any competitor.
"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
- GBPUSD Spread: Commission (.20 pts x trade value)
- EURUSD Spread: Commission (.20 pts x trade value)
- EURGBP Spread: Commission (.20 pts x trade value)
- Total Assets: 70+
- Leverage: 1:50
- 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
- Regulated by some of the world's most reputable bodies including in US
- Diverse payment options and account currencies
- Gives day traders unmatched access to global stocks with tens of thousands available from 100+ market centres in 24 countries
Cons
- Platform and web interface are complex and difficult for beginners to pick up
- Mediocre customer support
- Accessing products like CFDs is not straightforward compared to competitors
What Is A Canadian Forex Broker?
Forex brokers in Canada provide local traders with access to the global FX market. Here, brokers execute buy and sell orders on currency pairs, such as the USD/CAD, on behalf of their clients.
FX trades can be executed through desktop software, web-based terminals, and beginner-friendly mobile apps. But importantly, each forex broker in Canada offers different tools, investing conditions, pricing structures, and regulatory oversight.
CAD Background
After the Bretton Woods system was established during World War II, Canada’s currency was allowed to float freely between 1950 and 1962, when it briefly adopted a fixed rate until 1970, before moving back to a free-floating system.
In 1971, the Foreign Exchange Control Order designed a legal framework to control foreign currency, while the Exchange Fund Account handled Canada’s gold reserve, overseen by the Minister of Finance and Governor of the Bank of Canada.
In recent years, the Canadian forex market has grown in popularity, with the Canadian dollar (CAD) now enjoying its position as the sixth most traded currency in the world.
IIROC Oversight
The Investment Industry Regulatory Organization of Canada (IIROC) oversees all investment dealers and trading activity in the Canadian financial markets, including online forex brokers.
To operate in Canada, forex brokers are normally required to become Dealer Members of the IIROC. Firms also have to comply with the relevant provincial legislation.
IIROC-regulated forex brokers typically offer greater client security and fund protection vs firms with offshore regulation, this includes access to the Canadian Investor Protection Fund (CIPF), which can reimburse traders to the tune of $1 million in the event of broker insolvency. IIROC also safeguards retail traders by investigating fraudulent brokers and limiting forex leverage for retail investors (up to 1:50).
Note, due to the complex regulatory structure in Canada, which spans national and provincial requirements, some international forex brokers that accept Canadian traders are based elsewhere but conform to Canada’s key rules.
How Forex Brokers In Canada Make Money
Forex brokers in Canada make money through two main fee structures:
Spreads
The spread of an asset is the difference between the bid and ask prices, which forex brokers in Canada can either charge as a fixed or free-floating fee. Fixed spreads provide a guaranteed price of trading, whereas variable spreads will change with market volatility and liquidity. Variable spreads can often be much lower than fixed ones, especially at liquid times, although fixed spreads may be better during times with fewer active investors.
Spreads are displayed as a bid exchange rate vs an ask exchange rate. For example, a CAD/USD pair quoted at 1.1000/1.1002 means that you could buy USD with CAD at a rate of 1.1000, but you could only sell at a rate of 1.1002. The spread is thus 1.1002 minus 1.1000, which equals $0.0002, or 2 pips.
Popular Canadian forex broker, Questrade, offers competitive pricing on their 110 currency pairs, with spreads from as low as 0.8 pips under normal market conditions and a target spread of 2.5 pips on USD/CAD.
Commissions
The other main fee to be considered is commission, charged by many forex brokers in Canada. Commission fee structures may vary, presented either as a flat fee, such as $5 per round per lot or as a percentage of the position value, such as 0.5%.
The cheapest forex brokers in Canada will charge low spreads and commissions, which is beneficial for high-volume traders like scalpers.
Additionally, some Canadian forex brokers may impose charges like withdrawal fees or inactivity fees.
Always familiarise yourself with the broker’s terms and conditions before opening an account. If you are unable to find this information, reach out to the firm’s customer service team for a full fee catalog.
How To Compare Forex Brokers In Canada
There are multiple factors to consider when selecting the best forex brokers in Canada, especially given the individual nature of every client’s goals and needs. To break down the decision, consider the following:
Leverage
Leverage among legal forex brokers in Canada is limited to 1:50. This is slightly higher than that allowed in the US or Europe, where it is capped at 1:30.
Leverage allows you to open a bigger position size than your account balance would normally allow. However, limited leverage is put in place to minimize the amplified risk of losses.
Aligned to IIROC rules, Canadian forex brokers must provide each retail client with a copy of the leverage risk disclosure statement and receive confirmation that the client has acknowledged receipt.
Platforms
Trading platforms can make or break your experience in the forex market. If a platform has slow execution speeds, you may miss out on the best opportunities. On the other hand, a platform with advanced tools and complex interfaces can overwhelm a beginner.
Two of the most trusted and well-renowned platforms offered by most forex brokers in Canada are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). They offer a range of in-built indicators, customizable charts and graphs, access to algo bots plus various timeframes, order types, risk management tools and more.
Some Canadian FX brokers may offer different commercial or proprietary platforms. If this is the case, ensure there is a good range of charting tools, indicators and analysis options, as well as any additional services you may require. Forex.com for example, offers a bespoke webtrader and mobile app. The benefits include 70+ technical indicators and 50+ drawing tools. Alternatively, forex brokers that accept Canadian residents may also provide access to TradingView charts.
For beginners, Canadian forex brokers that offer copy trading services or access to step-by-step platform guides will rank highly. For more advanced investors, consider platforms with algorithm support, advanced strategy builders and comprehensive analysis tools.
It could also be worth testing out a platform that you haven’t used before in a simulated environment. Demo accounts give you the flexibility to practice trading risk-free whilst learning the features and functionality of the terminal.
Currency Pairs
If you have a good idea of which currency pairs you want to explore, take a look at a forex broker’s product list to see what they offer. While major pairs like USD/CAD are often provided, minor and exotic pairs like AUD/CAD or CAD/ZAR are less common.
Nonetheless, a good forex broker in Canada should have a wide range of currency pairs with competitive spreads and commissions.
Fees
Aside from spreads and commissions, prospective forex investors should consider the kind of strategies they might implement when comparing online brokers as this can also impact the associated fees and costs.
The best forex brokers in Canada will provide a transparent fee structure, with all applicable costs outlined before clients commit to a live trading account.
For Canadian residents with an account denomination other than CAD, be aware of currency conversion fees each time you add or withdraw funds from your account.
IIROC Regulation
As outlined above, the main financial regulatory body in Canada is the IIROC (Investment Industry Regulatory Organization of Canada). However, each region has a local agency. For example, forex brokers in Ontario are likely to be overseen by the Ontario Securities Commission.
Using a licensed and regulated broker is advisable to minimize risk and ensure adequate legal protections. Remember though, many international brokers will have separate regulatory oversight depending on where they are based and operate. Scroll to the website footer to find this information or reach out to the broker’s customer service team. AvaTrade for example, operates in Canada in collaboration with a division of Friedberg Mercantile Group Ltd, which is regulated by IIROC.
Payments
Another important factor when choosing forex brokers in Canada is the payment options available for deposits and withdrawals. Some payment methods are typically processed rapidly, such as global brands Visa or Mastercard or local payment solutions like Interac, allowing you to get started quickly. Other, more secure methods, such as bank wire transfers, can take up to five working days.
Canadian forex brokers that accept transfers from some of the biggest banks in the country, such as the Royal Bank of Canada (RBC), may offer favorable processing times.
Consider registering for a local payment method if you are planning on making regular deposits to forex brokers in Canada. Not only may you save time, but it may also ensure cheaper deposit and withdrawal fees.
Minimum Deposits
The best Canadian forex brokers for beginners will have low minimum deposit requirements. FXCC for example, has a $0 minimum deposit.
On the other hand, some forex brokers in Canada may require a high deposit amount in the region of $1000 to open an account, though they often provide tighter spreads and additional features.
Mobile Apps
The ability to trade on the go can open up more opportunities in the Canadian forex markets, which are open 24 hours a day, five days a week. The top forex brokers in Canada should offer mobile apps available to download on Android and iOS devices.
Making use of mobile platforms allows you to conduct technical analysis, monitor positions and execute orders without being tied to a desk. Look out for those with all the features and functionality of their PC-based options, with compatible zoom and scroll compatibility for smaller screens.
Final Word On Forex Brokers In Canada
The quality of forex brokers in Canada has grown over the years as the market has become more popular. Nowadays, the top forex brokers in Canada are supported by both the IIROC and local financial watchdogs. And while the range of forex brokers in Canada makes narrowing your choice down to the top 5 or 10 brokers harder, consideration of platforms, fee structures, range of currency pairs including the CAD, and additional features should aid your decision.
Use our list of the best forex brokers that accept Canadian traders to get started.
FAQs
Should I Pick Any Forex Broker That Is Accepting Canadian Clients?
While many forex brokers in Canada accept local clients, your decision should be more considered than that. Key factors include IIROC regulation, support for your strategies and competitive fees, platforms and bonuses. You can also find reviews of Canadian forex brokers with websites like ours.
How Much Leverage Can I Get With Forex Brokers In Canada?
Regulated forex brokers in Canada are limited to offering retail clients a forex leverage rate of 1:50 under the rules of the IIROC, a cap that has been put in place to minimize the increased risks of margin trading.
How Do I Find An ECN Forex Broker In Canada?
There are several ECN brokers that welcome Canadian day traders. You can see if a forex broker offers ECN trading by reading our reviews or you can see a list of ECN Brokers.
Do Forex Brokers In Canada Offer A Demo Account?
Most forex brokers in Canada offer a free demo account that allows you to test out the broker’s platforms and assets in a simulated environment. This provides a risk-free way to refine strategies and to check whether the FX broker is right for you before committing to opening a live account.
How Do I Know If A Forex Broker Is Allowed In Canada?
The regulatory status of a broker should be disclosed at the bottom of the website. Additionally, you can find a full list of regulated forex brokers in Canada on the IIROC website. That being said, not all regulated, legal FX brokers fall under the IIROC umbrella, as some are solely licensed by local bodies.
How Much Capital Do I Need To Trade With Forex Brokers In Canada?
Minimum capital requirements vary between Canadian forex brokers and account types. Some of the more accessible accounts can have minimum deposits as low as $10, while others can be in the thousands. Use our list of the top brokers with a low minimum deposit to find a suitable provider.