Forex Brokers In Canada

Whilst the number of forex brokers in Canada in 2022 may be high, finding the best account need not be the difficult task it first appears. Those interested in the Canadian foreign exchange markets have the advantage of being able to pick from multiple quality providers. With the right criteria and approach, the range of services can become an advantage, rather than a challenge.

This guide outlines some of the most important factors to consider when selecting forex brokers in Canada, including leverage, spreads, platforms, regulation and more.

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 (e.g. CAD/USD) on behalf of their clients. Each forex broker in Canada has different features, conditions and advantages.

During World War II, foreign exchange reforms were introduced. After the Bretton Woods system was enacted, 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.

The Canadian forex market has grown in popularity over recent years, with the Canadian dollar (CAD) enjoying its position as the sixth most traded currency in the world.Forex Brokers In Canada Charts

How Forex Brokers In Canada Make Money

Forex brokers in Canada make money through two main fee structures charged to their clients:


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.


The other main fee to be considered is commissions, 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 brokers may impose charges like withdrawal fees or inactivity fees. However, these may be less apparent than spreads and commissions. You should always familiarise yourself with the broker’s terms and conditions before opening an account.

How To Compare Forex Brokers In Canada

There are myriad factors that you could 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 factors.


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).

Some 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.


Prospective forex investors should consider the kind of strategies they might implement when comparing the spreads and fees of different brokers. High volume traders like scalpers would benefit from low spreads and commissions as frequent trades can cause costs to add up, negating profits. Furthermore, spreads differ across FX pairs, with major pairs likely to have tighter spreads vs exotic pairs, given their higher liquidity.


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 to 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.


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, Canada are likely to be overseen by the Ontario Securities Commission. Using a licensed and regulated broker is highly advised to minimize risk and ensure legal protection.


Another important factor when choosing forex brokers in Canada is the payment options available for deposits and withdrawals. Some payment methods are processed rapidly, such as Visa or Mastercard, allowing you to get started quickly. Other, more secure methods, such as bank wire transfers, can take up to five days.

Minimum Deposits

The best brokers for beginners have low minimum deposit requirements. This is because beginners are likely to have less capital they are willing to risk on the enterprise. On the other hand, some forex brokers in Canada may require a high deposit amount of $1,000 to open an account, often offering tighter spreads and additional features for these clients, who will be moving more money through the broker.

Currency Pairs

If you have a good idea of which currency pairs you may want to explore, take a look at a broker’s product list to see what they offer. While major pairs like CAD/USD are often provided, minor and exotic pairs like CAD/AUD or CAD/ZAR are less common. Nonetheless, a good forex broker in Canada should have a wide range of currency pairs to choose from.


Bonuses can come in the form of a starting deposit bonus or a rewards system. Therefore, finding forex brokers in Canada with deals and promotions can help kickstart your trades. However, it is important to read the terms and conditions of promotion before accepting it.


Forex brokers in Canada can opt for a single default account or a range of account types. Usually, account options include a beginner account, standard account and VIP account, which will have varied benefits and restrictions. It is advised to see whether the broker offers an account type that can best support your capital, strategies and knowledge level.

Mobile Apps

The ability to trade on the go can open up more opportunities in the forex markets, which are open 24 hours a day, six days a week. 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.Forex Brokers In Canada Mobile App


To enhance your experience, good forex brokers in Canada may offer additional tools and services. These can include live news feeds, economic calendars or educational resources. Furthermore, copy trading and EA robots are increasing in popularity, allowing automated position executions based on those of successful traders or predetermined strategies.

Customer Support

Hopefully, you may never need to use it. However, responsive and knowledgeable customer service can make all the difference for a trader. The most common ways to contact forex brokers in Canada are by telephone, email or live chat on their website.

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, many of the top forex brokers in Canada are supported by both the IIROC and local financial watchdogs. 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, currency pairs and additional features should aid your decision.


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 online 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 a ECN Forex Broker In Canada?

There are several ECN brokers that welcome Canadian day traders.  You can see if a broker offer ECN trading by reading or reviews or you can see or 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 test out strategies and to check whether the 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 brokers in Canada on the IIROC website. That being said, not all regulated, legal 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 with both broker and account type. Some of the more accessible accounts can have minimum deposits as low as $10, while others can be in the thousands.