Trading USD/CAD

The USD/CAD represents one of the most traded currency pairs in the world due to the large volume of cross-border trading between the US and Canada. The USD/CAD also belongs to the major forex group as it contains the influential US Dollar, while the Canadian Dollar is considered a commodity currency. Importantly, the pair offers rich volatility, liquidity, and tight spreads that attract online traders from all over.

Read on to learn about the history of the USD/CAD, its benefits and drawbacks, trading strategies and technical analysis, suitable investing times, and more. We also list the best brokers for trading USD/CAD below.

USD/CAD Trading Brokers

Click a broker for details
  1. 1
    OANDA US
    CFDs are not available to residents in the United States.

    Ratings
    4.5 / 5
    3.5 / 5
    2.8 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.3 / 5
    3.8 / 5
    4.7 / 5
    3.7 / 5

    $0
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)
    OANDA Trade, MT4, TradingView, AutoChartist
    Wire Transfer, Visa, Mastercard, Debit Card, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD
  2. 2
    Vantage

    Ratings
    4.6 / 5
    4.5 / 5
    4.5 / 5
    4.4 / 5
    4.3 / 5
    4.4 / 5
    4 / 5
    4 / 5
    3.6 / 5
    3.9 / 5

    $50
    0.01 Lots
    1:500
    FCA, ASIC, FSCA, VFSC
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds
    ProTrader, MT4, MT5, TradingView, DupliTrade
    Skrill, BPAY, JCB Card, AstroPay, Visa, Swift, Neteller, Wire Transfer, Credit Card, Debit Card, UnionPay, FasaPay
    USD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN
  3. 3
    IC Markets

    Ratings
    4.6 / 5
    4 / 5
    3.5 / 5
    4.6 / 5
    4 / 5
    4.5 / 5
    4 / 5
    3.5 / 5
    3.1 / 5
    4.2 / 5

    $200
    0.01 Lots
    1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
    ASIC, CySEC, FSA
    CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
    MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
    PayPal, Skrill, Neteller, Visa, UnionPay, Wire Transfer, Rapid Transfer, Mastercard, POLi, BPAY, Credit Card, Klarna, Swift, SafeCharge
    USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
  4. 4
    AvaTrade

    Ratings
    4.8 / 5
    4.3 / 5
    4.5 / 5
    3.8 / 5
    4.3 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5
    4.3 / 5
    4 / 5

    0.01 Lots
    1:30 (Retail) 1:400 (Pro)
    ASIC, CySEC, FSCA, ISA, CBI, FSA, FSRA, BVI, ADGM
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, Futures
    WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
    Skrill, Wire Transfer, FasaPay, Mastercard, Perfect Money, Swift, MoneyGram, Credit Card, WebMoney, JCB Card, Debit Card, Neteller, Boleto
    USD, EUR, GBP, CAD, AUD
  5. 5
    FOREX.com

    Ratings
    4.9 / 5
    4 / 5
    4.3 / 5
    4.6 / 5
    4.6 / 5
    4.3 / 5
    4.8 / 5
    4.5 / 5
    3.6 / 5
    3.8 / 5

    $100
    0.01 Lots
    1:400
    NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA
    CFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities
    MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
    Wire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN
  6. 6
    Pepperstone
    CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.

    Ratings
    4.6 / 5
    4 / 5
    3.8 / 5
    4.4 / 5
    4.4 / 5
    4.6 / 5
    4.3 / 5
    4 / 5
    4.4 / 5
    4.1 / 5

    $0
    0.01 Lots
    1:30 (Retail), 1:500 (Pro)
    FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
    CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
    MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
    Visa, Mastercard, Credit Card, Debit Card, PayPal, Wire Transfer, POLi, UnionPay, BPAY, Neteller, Skrill
    USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD
  7. 7
    XM

    Ratings
    4.3 / 5
    4.5 / 5
    4.3 / 5
    4.3 / 5
    4 / 5
    4.5 / 5
    4.5 / 5
    4.5 / 5
    4.7 / 5
    3.9 / 5

    $5
    0.01 Lots
    ASIC, CySEC, DFSA, FSC, FSCA
    Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
    MT4, MT5
    Credit Card, Debit Card, Skrill, Neteller, Wire Transfer, Perfect Money, Apple Pay, Google Wallet, TransferWise, Visa, M-Pesa
    USD, EUR, GBP, AUD, JPY, ZAR, CHF, SGD, PLN, HUF
  8. 8
    Eightcap

    Ratings
    4.3 / 5
    4 / 5
    3.6 / 5
    3.8 / 5
    4.3 / 5
    4 / 5
    3.5 / 5
    3 / 5
    4.8 / 5
    4.4 / 5

    $100
    0.01 Lots
    ASIC, FCA, CySEC, SCB
    CFDs, Forex, Stocks, Indices, Commodities
    MT4, MT5, TradingView
    Neteller, Skrill, Visa, UnionPay, Credit Card, Debit Card, Bitcoin Payments, Wire Transfer, FasaPay, BPAY, PayPal, Dragonpay, PIX Payment
    USD, EUR, GBP, CAD, AUD, NZD, SGD
  9. 9
    PrimeXBT

    $0
    0.01 Lots
    1:1000
    CFDs, Cryptos, Forex, Indices, Commodities, Futures
    Own
    Bitcoin Payments, Ethereum Payments, Credit Card, Debit Card
    USD, EUR, GBP
  10. 10
    IQ Option
    RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

    $10
    0.001 Lots
    1:500
    CFD, Forex, Crypto, Stocks, Digital Options
    Own
    Skrill, Yandex Money, QIWI, Wire Transfer, Alipay, Perfect Money, MoneyGram, Credit Card, Vietcombank Transfer, Volet, Maestro, Sofort, GlobePay, Boleto
    USD, EUR, GBP, ZAR

This is why we think these brokers are the best in this category:

  1. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  2. Vantage - Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
  3. IC Markets - IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
  4. 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.
  5. FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
  6. Pepperstone - Pepperstone offers ultra-competitive forex spreads averaging 0.12 pips on EUR/USD in the Razor account, accompanied by a diverse portfolio comprising 100+ currency pairs - an extensive selection surpassing most competitors. Additionally, Pepperstone distinguishes itself by offering three currency indices (USDX, EURX, JPYX), not commonly found among alternative platforms. Pepperstone has now won our annual 'Best Forex Broker' award twice.
  7. XM - XM offers ultra low spreads across a wide range of forex assets with no re-quotes or hidden charges. Over 50 currency pairs are available, which is above the market average and is in line with one of our top award-winners, AvaTrade.
  8. Eightcap - Eightcap offers 50+ currency pairs in line with the industry average but trailing category leaders like CMC Markets with its 300+ currency pairs. However, Eightcap stands out with institutional-level spreads from 0.0 pips on major pairs like the EUR/USD, alongside low $3.50/side commissions. The broker also offers rich forex data to inform trading decisions, including key fundamentals, bullish/bearish indicators and a calendar that tracks key events in the foreign exchange market.
  9. PrimeXBT - PrimeXBT offers 50 forex pairs, which is above the industry average and covers a good range of majors, minors and exotics. Traders can enjoy trading via margin with zero commissions. Additionally, the broker’s copy trading service allows you to explore various currency trading strategies.
  10. IQ Option - IQ Option offers CFD trading on 24 forex assets, including major pairs and some minors. EU traders can access a maximum of 1:30 leverage in line with local regulations. The broker offers commission-free trades but spreads are on the high side so the brand does not excel in this area.

Trading USD/CAD Comparison

Trading USD/CAD Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator
OANDA US logo 65+ 1.6 4 / 5 $0 NFA, CFTC
Vantage logo 55+ 0.0 4 / 5 $50 FCA, ASIC, FSCA, VFSC
IC Markets logo 75 0.02 4.8 / 5 $200 ASIC, CySEC, FSA
AvaTrade logo 50+ 0.9 4.3 / 5 - ASIC, CySEC, FSCA, ISA, CBI, FSA, FSRA, BVI, ADGM
FOREX.com logo 80+ 1.2 4.9 / 5 $100 NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA
Pepperstone logo 100+ 0.1 4.7 / 5 $0 FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
XM logo 55+ 1.6 4.7 / 5 $5 ASIC, CySEC, DFSA, FSC, FSCA
Eightcap logo 50+ 0.0 3.6 / 5 $100 ASIC, FCA, CySEC, SCB
PrimeXBT logo 45+ Variable 3 / 5 $0 -
IQ Option logo 60+ 14 pips 4.5 / 5 $10 -

OANDA US

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

Rebecca Holden, Reviewer

OANDA US Quick Facts

GBPUSD Spread3.4
EURUSD Spread1.6
EURGBP Spread1.7
Total Assets65+
Leverage1:50
PlatformsOANDA Trade, MT4, TradingView, AutoChartist
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

Pros

  • The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
  • Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
  • Day traders can enjoy fast and reliable order execution

Cons

  • There's only a small range of payment methods available, with no e-wallets supported
  • The range of day trading markets is limited to forex and cryptos only
  • It's a shame that customer support is not available on weekends

Vantage

"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."

Jemma Grist, Reviewer

Vantage Quick Facts

Bonus Offer50% Welcome Deposit Bonus, earn redeemable rewards in the Vantage Rewards scheme
GBPUSD Spread0.5
EURUSD Spread0.0
EURGBP Spread0.5
Total Assets55+
Leverage1:500
PlatformsProTrader, MT4, MT5, TradingView, DupliTrade
Account CurrenciesUSD, EUR, GBP, CAD, AUD, NZD, JPY, HKD, SGD, PLN

Pros

  • Vantage maintains its high trust score thanks to its strong reputation and top-tier regulation from the FCA and ASIC
  • There’s an excellent suite of day trading software, including the award-winning platforms MT4 and MT5
  • The broker has recently made efforts to expand its suite of CFDs providing further trading opportunities

Cons

  • Unfortunately, cryptos are only available for Australian clients
  • It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
  • The average execution speeds of 100ms to 250ms are slower than alternatives based on tests

IC Markets

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

Christian Harris, Reviewer

IC Markets Quick Facts

GBPUSD Spread0.23
EURUSD Spread0.02
EURGBP Spread0.27
Total Assets75
Leverage1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
PlatformsMT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
Account CurrenciesUSD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD

Pros

  • IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
  • As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.

Cons

  • There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.

AvaTrade

"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."

Rebecca Holden, Reviewer

AvaTrade Quick Facts

GBPUSD Spread1.5
EURUSD Spread0.9
EURGBP Spread1.5
Total Assets50+
Leverage1:30 (Retail) 1:400 (Pro)
PlatformsWebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
Account CurrenciesUSD, EUR, GBP, CAD, AUD

Pros

  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
  • The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
  • Recently introduced AvaFutures offers an alternative vehicle to speculate on over 35 markets with low day trading margins

Cons

  • It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
  • There is no ECN account with raw spreads
  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day 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

GBPUSD Spread1.3
EURUSD Spread1.2
EURGBP Spread1.4
Total Assets80+
Leverage1:400
PlatformsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN

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.
  • 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.
  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.

Cons

  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • 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.
  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.

Pepperstone

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

Christian Harris, Reviewer

Pepperstone Quick Facts

GBPUSD Spread0.4
EURUSD Spread0.1
EURGBP Spread0.4
Total Assets100+
Leverage1:30 (Retail), 1:500 (Pro)
PlatformsMT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
Account CurrenciesUSD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD

Pros

  • Award-winning customer support is available via telephone, email or live chat with response times of <5 minutes during testing.
  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.

Cons

  • Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
  • There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.

XM

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

Rebecca Holden, Reviewer

XM Quick Facts

Bonus Offer$30 No Deposit Bonus When You Register A Real Account
GBPUSD Spread1.9
EURUSD Spread1.6
EURGBP Spread1.8
Total Assets55+
PlatformsMT4, MT5
Account CurrenciesUSD, EUR, GBP, AUD, JPY, ZAR, CHF, SGD, PLN, HUF

Pros

  • XM is a hugely respected broker authorized by tier-one regulators
  • XM continues to deliver diverse and multilingual educational materials and offers a useful live education schedule for its webinars and insights
  • 1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries

Cons

  • There's $5 inactivity fee after only 3 months, though this won't affect active traders
  • PayPal deposits are not supported
  • There is weak regulatory oversight through the global entity

Eightcap

"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."

Christian Harris, Reviewer

Eightcap Quick Facts

GBPUSD Spread0.1
EURUSD Spread0.0
EURGBP Spread0.1
Total Assets50+
PlatformsMT4, MT5, TradingView
Account CurrenciesUSD, EUR, GBP, CAD, AUD, NZD, SGD

Pros

  • Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
  • After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
  • Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.

Cons

  • The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.
  • In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
  • Eightcap needs to continue bolstering its suite of instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.

PrimeXBT

"PrimeXBT is good for beginners looking to trade crypto derivatives among traditional assets like forex and indices. There's also a proprietary copy trading solution for novices looking to learn from more experienced investors. With that said, the lack of regulation means traders will receive limited safeguards."

Christian Harris, Reviewer

PrimeXBT Quick Facts

Bonus Offer$100 Deposit Bonus
GBPUSD SpreadVariable
EURUSD SpreadVariable
EURGBP SpreadVariable
Total Assets45+
Leverage1:1000
PlatformsOwn
Account CurrenciesUSD, EUR, GBP

Pros

  • The broker’s platform and app offer advanced charting features, including 50+ technical indicators, a customizable layout and multiple order types including OCO
  • Beginners can access a crypto trading Academy with bite-size resources and YouTube videos
  • The broker offers 24/7 customer support via live chat, as well as an extensive help centre

Cons

  • The lack of reputable regulatory oversight is a security concern, though this is common in the crypto trading industry
  • The total selection of 110+ assets is far fewer than top competitors, including OKX with 400+
  • It’s a shame that there are no popular third-party platforms on offer such as MT4

IQ Option

"IQ Option is a good broker for beginners with a slick platform and low minimum investment. New users can also open an account in three easy steps."

Christian Harris, Reviewer

IQ Option Quick Facts

GBPUSD Spread5 pips
EURUSD Spread14 pips
EURGBP Spread15 pips
Total Assets60+
Leverage1:500
PlatformsOwn
Account CurrenciesUSD, EUR, GBP, ZAR

Pros

  • iOS & Android compatible app
  • High payouts on binary options
  • Reliable 24/7 multilingual support

Cons

  • €10 inactivity fee after 90 days
  • No MetaTrader 4 integration

Why Trade USDCAD?

The USD/CAD currency pair is the fifth most traded forex pair in the world. With that in mind, it’s probably no surprise that it’s often highlighted on popular trading platforms and exchanges. But why should you invest in USD/CAD?

Drawbacks

Live Chart

Influences On Movement

There is a multitude of factors to consider in the USD/CAD relationship. However, the following are key to influencing the currency pair’s conversion rate:

United States Influence

List of best USD/CAD trading brokers

Canadian Influence

How to trade the USD/CAD

Currency Correlations

What may not be clear when trading on your USD/CAD live chart is the effect of currency correlations. No single pair trades completely independent of other currencies. These relationships varying by dates are known as positive and negative correlations:

Application

A USD/CAD trader can use this information to better understand the consequences of movement in certain pairs. But it is important to note that correlations do not always remain stable. For example, USD/CAD had a strong positive correlation with a coefficient of 0.95. However, the relationship deteriorated down to 0.28. Many factors can affect this, such as economic impacts or decisions made by the Fed or BoC.

USD/CAD Trading Strategy

To trade USD/CAD effectively, it takes more than just analyzing signals and keeping up with the latest news and pre-market sentiment. It also takes more than using pip values to your advantage. Below are some useful options and considerations.

Timing

When day trading in the forex space, timing is everything. FX trading may be available 24/7, but it doesn’t mean you should buy and sell all day. Instead, you want to trade when the USD/CAD pair is active, with plenty of volume and volatility. The danger is if you trade at the wrong times, the cost of spreads and commissions can cancel out profits.

Trading sessions in Canada and the US coincide, which means longer trading sessions, but it can also mean more profit. Of course, higher trading volumes also make USD/CAD a lot riskier to trade with.

Ideal Window

So, when is the best time to day trade USD/CAD? The ideal time is arguably from 08:00 to 17:00 EST, which is the entire North American trading session. During this nine-hour window, trading volumes are at their peak, and you have better leverage.

Interestingly, the pair also sees its greatest daily volatility on a Friday, which can be due to traders adjusting positions ahead of the weekend. Spreads are normally tightest during this window, which can result in the greatest opportunities to generate profits. During this window, forex forums are also active.

All these factors can result in the biggest profit potential. Therefore, you should make sure to check for intraday volatility and invest your trading capital during this time slot.

Buying & Selling USD/CAD

The USD/CAD has a tendency to make solid moves promptly, which follows a considerable period for consolidation. So, live charts and technical analysis will often be needed to succeed in trading this FX pair.

Trading the USD/CAD can be based on some simple technical strategies. For example, you can trade based on bounces from trend lines or support and resistance levels. This steady strategy can supply many small profits over a period of time. On the other hand, traders can opt for a more aggressive strategy that delivers large profits in a short period. This involves watching out for inevitable breakout moves from the pair.

The most intense trading sessions occur at the release of economic reports such as non-farm payrolls, unemployment rates, economic sentiment, manufacturing, and non-manufacturing activity growth. Thus, trading during these events without the help of technical analysis can be done using a proactive, a reactive, or a mixed strategy. Proactive trading involves entering a position ahead of the release of today’s data, for example, and basing your decision on forecasts. A reactive approach involves entering the market after the data is published. Finally, a mixed approach combines the two.

News

The latest market news updates on the USD/CAD currency pair can quickly impact market sentiment and create price shifts. You can capitalize on the right moments, but only if you understand how the markets reacted historically.

Since this pair is significantly affected by the oil sector, you should be aware of OPEC meetings that involve oil-selling countries like Canada and the USA. These deliberations can help you forecast which currency will have bigger demand in the future. You should also keep an eye on the decisions made by the Fed and BoC. As mentioned before, these two banks make important decisions on interest rates and monetary policy, which have a large effect on the value of the USD and CAD.

Make sure to keep on top of the latest news updates, along with daily, weekly and monthly forecasts. Utilize technical analysis on live charts, the latest spot exchange rate, plus forecasts and forums. The following are some popular resources:

History

Before you start live chart investing, it is helpful to have an understanding of the USD/CAD history:

Early History

The US Dollar was created during The Coinage Act of 1792, when the United States Congress appointed it as the country’s currency. Paper banknotes were introduced into circulation in the mid-1800s. In 1913, the Federal Reserve Act created the central bank of the US. The USD is still regarded as the world’s unofficial reserve currency after the introduction of the Bretton Woods monetary system in 1944.

On the other hand, in the early 1850s, Canada departed from the colonial pound sterling and shifted to the Canadian Dollar. Until 1970, the CAD was attached to the USD, but it is currently a free-floating currency controlled by the Bank of Canada. It’s also nicknamed as the ‘loonie’, derived from the loon bird that appears on Canadian Dollar coins.

Recent History

Historical exchange rates of the USD/CAD were affected by key events. The Canadian Dollar reached parity with the US Dollar on September 20, 2007. It had been the first time in close to 31 years. Other points of USD/CAD parity were after the Great Recession when the Federal Reserve had subsequent quantitive easing. The Canadian and US Dollar eventually reached a parity of 0.95.

In fact, most instances of parity were related to periods of financial difficulty in the US or during high oil prices. For example, in 2016, the price of oil slumped to a low, trading at less than $30 per barrel. During this time, the Canadian Dollar hit a record low of 1.46 CDN to the USD.

The US to CAD FX rate between 2008 to 2018 has been anywhere between 0.94 and 1.46. The two have been relatively close in value over the decade. From 2011 to 2012, the CAD was worth more than the USD. This was when the USD/CAD exchange rate briefly dipped below 1.00. Since then, the US Dollar has shown a steady increase in value against the Canadian Dollar, particularly in mid-2015. The US Dollar was also in a general uptrend against most other major currencies during this time.

The influence of oil was felt again during the Covid-19 pandemic when oil prices fell to sub-zero. The CAD/USD rate reached 1.45. Although the CAD has since recovered, the effects can still be felt in 2024. This is in part due to Canadian inflation reaching a 31-year high of 6.7% in March 2022.

Note, the USD/CAD reached an all-time high of 1.62 in January of 2002; and an all-time low of 0.92 in November 2007.

Role Of The USD

After understanding key events in the USD/CAD timeline, it is important to grasp the role of the US Dollar to make future rate predictions.

The United States is the world’s largest economic power, representing almost 25% of the global nominal GDP. The country’s economy is primarily service-oriented, with 80% of its GDP coming from sectors like real estate, transportation, and financial services. Since the USD is the most traded currency in the world, it is affected by many factors. As already mentioned, key influences include the various reports issued by the Fed.

Other major economic indicators are:

Role Of The CAD

While you might focus your attention on the strength and role of the USD, it is equally useful to consider the role the CAD plays too.

Canada is the fourteenth biggest economy in the world. It closely resembles the United States with its market-oriented economic system, types of production, and high standard of living. Canada’s economy is typically known as a resource-based economy, as it mainly relies on the export of its natural resources such as wood, grain, minerals, and petroleum. Nonetheless, more than two-thirds of its GDP comes from its service sector.

Other major economic indicators are:

Importantly, the 1989 Free Trade Agreement between Canada and the US removed the majority of trading tariffs between the countries. The Bank of Canada is also a major influence on the Canadian Dollar as it enacts policies that promote economic and employment growth. Daily, weekly, monthly, and annual exchange rate charts are available on the BoC website.

Final Word On Trading USD/CAD

The USD/CAD currency pair promises volume, volatility, and tight spreads, which provide plenty of opportunity to yield profits. However, there are many factors to consider, like economic data releases, central bank statements, and the latest market news.

You must be ready to conduct your own expert analysis, utilize interactive daily, weekly and historical charts, trends, and news resources. Make sure to maximize the quality of your trades in the ideal window when the pair is most liquid. You can also invest via trusted OTC brokers such as Pepperstone and Oanda. If you follow the guidelines outlined on this page, you too can go in search of those rich forex profits.

FAQs

When Is The Best Time To Trade USD/CAD?

The USD/CAD market hours align with the North American trading session between 08:00 and 17:00 EST. This is when the FX pair is most liquid and volatile. Invest your trading capital during these times to improve the quality of trades.

How Much Is 1 USD In CAD?

The USD to CAD exchange rate is always shifting. See a live chart for the latest rate between the two popular currencies.

Is The USD Stronger Than The CAD?

The historical exchange rate of the two is always fluctuating, with both currencies being stronger than the other across various points. However, in the last few years, the US Dollar has maintained a superior position to that of the Canadian Dollar.

Can I E-Transfer USD To CAD?

There are many services available today that allow you to e-transfer USD to CAD and vice versa. For example, TD provides competitive exchange rates and ensures your transactions are processed safely and securely.

Should I Trade With USD/CAD?

When done effectively, the profit potential can be fruitful. This is because USD/CAD provides high volumes and tight spreads. It also features two key currencies, with the US Dollar being the world’s top reserve currency. Investors can make use of simple strategies like trading based on bounces from trend lines or from support and resistance levels. Alternatively, you can opt for more aggressive strategies that deliver large profits in a short space of time. A proactive, reactive, or mixed approach to the news can also prove prosperous during major economic releases.