Top Forex Brokers in Canada for Forex Trading

CA FlagThere are a number of reasons responsible for the growing popularity of the Forex trading in the recent times. First of all, Forex is a kind of investment contrary to one of the many ways to earn money online which has more to do about getting lucky rather than being skilled and able to speculate the future developments.

It is to be noted that FX trading allows the individual trader to participate in the global trade market. Like for instance, if you are staying in Canada, you would be able to trade currencies from a number of different countries across the world. It is one of the many reasons as to why there are so many trading options. The market is open round the clock through all the business days and is closed only on the weekends.

Loonie (Canadian Dollar) has become one of the favourites and most traded currencies among the traders not just in Canada because of its stability which is usually regarded as a result of the stability of the political and economic system of Canada as a whole.

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1st

Deposit: $100
Leverage: 294:1

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2nd

Deposit: $5
Leverage: 888:1

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3rd

Deposit: $50
Leverage: 1000:1

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4th

Deposit: $50
Leverage: 400:1

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5th

Deposit: $250
Leverage: 400:1

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6th

Deposit: $100
Leverage: 200:1

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7th

Deposit: $250
Leverage: 500:1

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Choose the Right Broker

No matter you choose to trade in EUR/CAD or USD/CAD or any other currency pair, you need to remember certain things before you start your trading. Generally, all the Canadian Forex Brokers offer similar things to the customers and you will be able to get more or less most kinds of currency pairs with similar leverage rates and currency quotes. However, there are certain differences that can help you select the best broker out of the lot. A smart trader is one who is able to shop around well in the market before selecting on his choice of most trusted and reliable broker.

Currency Pairs

It is the most important aspect of the trade. It is generally categorised into a major, minor and exotic. The major currency pairs include the American Dollar and seven most traded currencies in the world and it includes the Canadian dollar. Minor currency pairs are those which are used as a combination of the most traded currencies of the world excluding the American dollar.

Like for instance, GBP/CAD, CAD/JPY and EUR/CAD are all minor currency pairs. Lastly, exotic currency pairs are those which are the least traded currencies in the world like the South African Rand and/or the Turkish Lira. These currencies are generally paired with the US Dollar and everyone knows that it is the world’s most traded currency.

Spread

The currency pair is closely tied with the spread. You should keep a note of this term because it has its own importance in FX market. Spread is actually the difference between the buying and selling price. Brokers are able to book profits after offering two different prices to the traders. The larger is the gap between them, more is the amount of profit for the broker. Generally, the brokers offer tighter spreads on the most traded currencies of the world and the contrary applies for the least traded currencies of the world.

Leverage

It is another very important segment that should not be overlooked at any cost. It allows the trader to trade in a larger amount of currency units instead of the amount available to the trader. Suppose the leverage ratio is 100:1, it means that you will be able to trade currencies worth $10000 by just $100 at your disposal. Some nations and regulators concerned have put a cap on the leverage ratio. In Canada, there is no limit and traders are able to trade with higher leverage ratios like 1000:1 easily. But you need to understand that trading with a high leverage ratio is tantamount to risk and you should trade with full caution.

Trading Platforms

All the trades in the Forex market takes place through a trading platform. Nowadays, most of the brokers offer web-based trade platforms where one can register and access their account without having to download any software on their PC.

But you should know that brokers also offer downloadable platforms too that can be downloaded free of cost and installed on the PC in no time. It is a convenient option for some traders.

It is to be noted that we live in the age of high technology gadgets and smartphones and it offers brokers the technological edge for attracting the potential client. One can trade from smartphones and tablets with the respective broker even when one is on the move through the mobile trading platform. It has become quite popular in the recent times and mobile trading is compatible across all the latest operating system like iOS, Android and Windows.

People who are new to the Forex industry want simple and easy solutions as compared to the skilled and experienced traders who look for options and platforms that allow them to book high profits. This is the reason why brokers offer complicated platforms to such traders. Like for instance, the MetaTrader platform allows the trader to analyse price movements and access important info like graphs and charts including using the automated trade mechanism.

Bonuses and Promotions

Brokers believe that best spreads are always not enough to entice prospective traders. That is why a number of brokerage firms offer bonus and special promotions to the traders like:

    Deposit Bonus

    No-Deposit Bonus

    Other Promotions

As the name suggests, No Deposit Bonus does not require the trader to deposit any money and they will be eligible for bonus as soon as they sign up and register with the broker concerned. The Deposit Bonus actually offers a percentage match on the basis of first deposit of the trader. Like for instance, if the Deposit Bonus is 100% and you have deposited $50 as your first deposit, you will be eligible for a bonus amount of $50. There are special promotions offered by the broker from time to time like tournaments etc where traders can win heavily and improve their chances to increase their bankroll.

Other Considerations

Apart from the things mentioned above, there are few other things that need to keep in mind. Like for instance, most of the brokers offer few deposit options. Some of them can be exclusively available for the Canadian traders while the others can be international payment gateways like eWallet, major debit/credit card etc. It is important to check that the broker is not charging hefty fees for using the payment channel. Also, you need to make sure that all the transactions are processed in the minimum time frame.

Trading in Forex market is no child’s play and you need to treat it with a sound mind. You need to prepare yourself and devise proper strategies. For best results, broker offers different types of learning methodology like webinars, ebooks and recorded videos to make the trader aware of the intricacies of the Forex market. Once you are informed, you will be able to make correct decisions and this, in turn, can help you emerge as a winner.

It is likely that some point during the trade, you would come across some kind of problems. If you are unsure how to proceed ahead, you should always consult the customer support of the broker concerned. The staff members can be accessed through live chat, email or direct telephone call.

Legal & Regulatory Issues

You will be glad to know that the Canadian Government has not imposed any kind of restrictions on Forex trade and you are legally allowed to trade in the Forex market.

IIROC or Investment Industry Regulatory Organization of Canada is the main body that looks after the regulation of brokers It is a nonprofit organisation that came into existence after the merger of two similar organisations namely Market Regulation Services Inc and Investment Dealers Association of Canada in the year 2008.

IIROC is actually overlooked and monitored by CSA or Canadian Securities Administrators that offers support to different federal and provincial organisations. Its main objective is to harmonise and coordinate the regulation of the financial market in Canada. Provincial organisations like British Columbia Securities Commission (BCSC), Autorité des Marchés Financiers (AMF) and Ontario Securities Commission (OSC) participate in the process of controlling and regulation but everything is synchronised with the help of IIROC.

You need not have to worry a lot about the regulation and don’t embroil yourself into understanding the legal sanctity. All brokers that offer their services in Canada have to go through a legal filter and offer the highest level of service.

FAQ (Frequently Asked Questions)

1. Are all the bonus money awarded automatically?

2. Would it be better for the Canadian traders to trade in currency pairs that include Canadian Dollar?

3. Can I open multiple trading accounts with Forex brokers?

4. Is it recommended to trade with a high leverage ratio?

5. Is income derived from Forex trade taxed in Canada?