Trading EURCAD
The EURCAD is one of the most-traded currency pairs by volume. However, complexity and volatility can lead to unsettled price action. This guide will analyse the trading view of the EURCAD cross-currency pair, including historical data, long-term forex forecasts, correlation calculators, investing strategies, live charts, and more.
Best EUR/CAD Brokers
We've tested hundreds of brokers and these 3 stand out as the best for trading EUR/CAD:
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1
FOREX.comActive Trader Program With A 15% Reduction In Costs
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$1000.01 Lots1:50NFA, CFTCForex, Stocks, Futures, Futures OptionsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentralWire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH TransferUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN -
2
IGForex trading involves risk. Losses can exceed deposits.
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$00.01 Lots1:30 (Retail), 1:250 (Pro)FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFMCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread BettingWeb, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentralPayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit CardUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD -
3
Pocket Option50% Deposit Bonus
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
$50$1MISABinary Options, Currencies, Commodities, Stocks, Indices, CryptosWeb, MT4, MT5Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCash, AirtelUSD
Here is a short summary of why we think each broker belongs in this top list:
- FOREX.com - Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.
- IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
- Pocket Option - Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.
FOREX.com
"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."
Christian Harris, Reviewer
FOREX.com Quick Facts
| Bonus Offer | Active Trader Program With A 15% Reduction In Costs |
|---|---|
| Demo Account | Yes |
| Instruments | Forex, Stocks, Futures, Futures Options |
| Regulator | NFA, CFTC |
| Platforms | MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral |
| Minimum Deposit | $100 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:50 |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN |
| Currency Pairs | USD/CNH, EUR/CNH, AUD/CNH, CNH/JPY, EUR/AUD, EUR/SGD, EUR/TRY, EUR/CAD, EUR/GBP, GBP/AUD, GBP/CAD, GBP/JPY, GBP/ZAR, USD/HKD, USD/SGD, USD/THB |
Pros
- With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
- FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
Cons
- Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
- FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
IG
"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."
IG Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting |
| Regulator | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM |
| Platforms | Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral |
| Minimum Deposit | $0 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail), 1:250 (Pro) |
| Account Currencies | USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD |
| Currency Pairs | USD/CNH, EUR/AUD, EUR/JPY, EUR/SGD, EUR/TRY, EUR/CAD, EUR/GBP, GBP/AUD, GBP/CAD, GBP/HUF, GBP/INR, GBP/JPY, GBP/ZAR, USD/HKD, USD/INR, USD/MYR, USD/SGD, USD/THB |
Pros
- The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met
- As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
- IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
Cons
- Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
- While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
- IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors
Pocket Option
"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."
Pocket Option Quick Facts
| Bonus Offer | 50% Deposit Bonus |
|---|---|
| Demo Account | Yes |
| Instruments | Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos |
| Regulator | MISA |
| Platforms | Web, MT4, MT5 |
| Minimum Deposit | $50 |
| Minimum Trade | $1 |
| Account Currencies | USD |
| Currency Pairs | EUR/AUD, EUR/JPY, EUR/TRY, EUR/CAD, EUR/GBP, GBP/AUD, GBP/CAD, GBP/JPY, USD/INR, USD/MYR, USD/SGD, USD/THB |
Pros
- Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
- The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
- The web platform shines for its straightforward design and usability that will appeal to beginners looking to speculate on popular financial markets in a few clicks
Cons
- You need to deposit $1000 to access the extended list of 250+ assets, otherwise just 130+ assets are available
- Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders
- The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
EURCAD Explained
The Euro (EUR) is the official currency of respective European nations, and the Canadian Dollar (CAD) is that of Canada. The exchange rate of both currencies is impacted by respective monetary policies from the European Central Bank (ECB) and the Bank of Canada. Today, the Euro is the second most traded currency in the world, while the Canadian Dollar is the sixth.
Importantly, the EURCAD exchange rate denotes the buy or sell price of the Euro to the Canadian Dollar. For example, 1 EUR to 2 CAD means to buy 1 Euro, you will pay 2 Canadian Dollars.
Exchange rate history, future prognosis, real-time news, and decisions from central banks can all help traders make predictions about the value of the currency today, tomorrow, or several months from now.
Live Chart
History
The EURCAD is a fairly new forex pairing following the introduction of the Euro. The Euro was established as a digital currency in 1999 before gaining power as a physical asset across European Union zones. Significant economic events, including Brexit, and Eurozone performance have impacted the value of the Euro over the years.
The Canadian Dollar, originally the Canadian Pound, was developed in the 1850s and renamed to strengthen trade affiliation with the US. The value of the Canadian Dollar was set at 1.1 CAD to 1 USD until 1970 when it then became a floating currency. The Canadian Dollar is a commodity-sensitive currency with exchange rate fluctuations responding to price movements of their most lucrative export asset, crude oil.
In recent history, inflation rates and the Russia-Ukraine war also destabilized the EUR, which has since been losing ground against the CAD. This is a very good example of how global political events can impact forex trading markets, even though Ukraine doesn’t directly use the Euro.
Note, the all-time high for the EUR/CAD was 1.71 in December 2008 while the all-time low was 1.21 in August 2012.
Influences On Price
Many influences can cause movements in the value of the EURCAD, lending it to various trading strategies. Fundamental and technical analysis play a key role in most strategies, helping to inform investment decisions.
Technical Analysis
Today, technical analysis for trading forex pairs such as the EURCAD typically involves reviewing price trends and patterns on graphs. Historical 5 /10/ 20 years price data and monthly average charts are available at many top brokers, including IG. In fact, most of the best brokers offer software free downloads with a suite of charts and indicators to aid with technical analysis. Competitive forward rates are also available at top providers.
Fundamental Analysis
Fundamental analysis involves looking at economic, social, and political influences on the EURCAD. For example, investors should look at Canadian GDP growth data, plus unemployment and interest rates. Lots of the best platforms for day trading currencies offer economic calendars with upcoming events, along with the latest news bulletins.
Features Of The EURCAD
The EUR/CAD is known as a cross-currency forex pair. Cross pairs are those that do not include the US Dollar and have particular features to take into account:
- Uncorrelated pairs are highly volatile
- Reduced exposure to exchange rate fluctuations from US Dollar sensitive events
- Lower volume traded vs. major currency pairs can lead to increased price swings
- Weaker liquidity may lead to increased spreads with additional pips to enter trades
Despite this, it is important to note that the value of the US Dollar can still influence price movements in the EURCAD. A strength or weakness in the USD against other currency pairs can indirectly impact cross pairs.
Use a correlation calculator to understand the variables impacting the EURCAD versus the EURUSD and USDCAD. A positive correlation indicates a forex pair that reacts in line with movements in the EURCAD. A negative correlation suggests the currency pair will move in the opposite direction.
How To Trade The EURCAD
Currency pairs such as the EURCAD are bought and sold via a network of banks and brokers in a decentralized OTC market. Traders can use CFDs, forwards and futures, options, and more to speculate on the value of the pair.
Regardless of instrument, employment rates, political events, and demand for key commodities such as oil can all impact the EURCAD.
Trading Strategies
Many forex trading styles can be used to speculate on the price of the EURCAD:
- Swing – Holding positions for one or more days. Identify the market range and buy or sell according to support and resistance signals, pivot points, or other indicators.
- Scalping – Opening and closing positions, usually holding for just a few minutes to take advantage of small gaps between the bid and ask price. Intraday candlestick charts are a useful tool for scalpers.
- Carrying – Using a low-interest-rate currency to invest in a high-interest rate currency. EURCAD swap strategies usually involve going short. Sell the Euro to benefit from an interest rate differential between the EURCAD and your position size.
Pros Of Trading EURCAD
There are several reasons why this forex pair is popular:
- High volatility – Strong market trends means greater potential to generate revenue.
- Interest rates – Discrepancies between interest rates create opportunities for carry trade strategies.
- Information – Plenty of financial information is available on the EURCAD exchange rate online. Data includes weekly forecasts, live exchange rate charts, and currency conversion graphs. These can all help with trader outlooks and market sentiment.
Cons Of Trading EURCAD
There are some drawbacks to consider before investing money in the EURCAD:
- High risk – The volatility of the pair can create a complex environment for traders with limited experience or knowledge.
- Euro cross – The Euro links make the FX pair susceptible to intense price fluctuations from political and economic events in Europe.
Best Time To Trade
The majority of price movement occurs during the crossover between the London and New York financial market sessions, 1 pm to 4 pm GMT. Keep an eye on FX spot rate real-time charts and live graphs during this time. Most popular day trading strategies can be used during this period of increased liquidity.
Final Word On Trading EURCAD
The EURCAD offers traders both liquidity and volatility. There is a wealth of market data and trading tools available at leading forex brokers to help traders take positions on the FX pair. But before you start investing money, it is important to keep abreast of factors that can influence the exchange rate, including central bank decisions, news events, and indirect impacts from US Dollar sensitivities.
FAQs
Which Monetary Authority Regulates The Canadian Dollar?
The Central Bank of Canada is the nation’s primary bank. While intervention is rare, it is worth keeping an eye on announcements from the central banking authority as they may influence the value of the EURCAD.
How Do I Read The EURCAD Forex Pair?
In this forex pair, the Euro is the base currency and the Canadian Dollar is the quote currency. The base currency signifies how much of the quote currency is needed to buy one unit of the base currency. For example, 30 EUR versus 45 CAD means to buy 30 Euro you will pay 45 Canadian Dollars.
When Is The Best Time To Trade EURCAD?
The best time to trade the EURCAD currency pair is generally during the crossover between London and New York market sessions, 1 pm to 4 pm GMT. This is where the majority of price movement will occur creating trading opportunities.
How Much Is 1 EUR To CAD?
Exchange rates for the EUR to CAD fluctuate daily, noted in historical charts by date. Live currency exchange rate charts offered by leading forex brokers show how many Canadian Dollars are needed to buy 1 Euro.