5 Best Forex Brokers Canada 2024 IIROC Regulated List ️
This feature allows you to test your trading in a live environment without risking too much to begin with, helping you grow your confidence by risking your funds. As you can see in the image below, we have an order to open a EUR/USD position with one unit, requiring only a 0.07 CAD margin. With OANDA Trade, you can start trading with small lot sizes, even less than a micro lot, as low as one currency unit.
Understanding IIROC Regulation
The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In fact, this document legalized Canadian residents’ access to leveraged forex and CFD products. The CIRO is responsible for setting and enforcing rules with transparency, integrity, and fairness regarding proficiency, business, and financial conduct.
To trade this extensive product range as a Canadian forex trader, you can open either a zero commission (Standard or MetaTrader account) or a commission-based trading account (RAW Pricing account). Canada is uniquely divided into multiple jurisdictions along the lines of their provinces and territories. Each province has its own regulatory body that can provide additional rules over and above IIROC requirements.
How can I verify if a forex broker is regulated in Canada?
MT4 is the leading trading platform used by forex traders across the world. Despite many limitations, this legacy platform is supported by a large number of market developers with third-party plugins. It offers trading with a wide range of assets, and trading conditions are also excellent with no limit in trading strategies. It maintained a great reputation and the aspect of being a public company also makes CMC a safe forex broker. In addition, it is recommended to explore the broker’s proprietary trading platform, as they often offer advanced features such as sentiment indicators, real-time news, and trading ideas.
These spreads were both top-4 of the cheapest brokers we tested, out of a list of 15. In fact, when we looked at published spread results against fxprimus review other brokers, OANDA had the most competitive spreads for a Standard account. OANDA averaged 0.7 pips against the industry average of 1.52 pips for the top 5 most traded currency pairs. A broker that offers a range of forex tools is another vital thing to look out for.
The broker has entities authorized and regulated by Tier 1 ASIC and CySEC as well as one unregulated entity based in St.Vincent and the Grenadines (SVG). Our research also shows that MT4 users can download Trading Central for Windows which provides access to economic calendars and real-time trading ideas. There are also two account types for MT4 users which can both be funded in CAD, USD, EUR, GBP, and others to trade forex, indices, commodities, cryptos, and some stocks. The platform accommodates basic technical analysis and simple order execution. It features more than 50 analytical tools and chart configurations, as well as trading from the chart and one-click trading. Zero pips means you just pay the commission, which is $3.00 per lot traded.
A forex broker is essentially the ‘middle-man’ between forex traders and the FX market. Forex brokers help facilitate the buy and sell positions of forex traders, ensuring trades can be opened immediately, and positions can be closed when the trader wishes. If you are an advanced trader, you might even want to keep an eye out for brokers that offer minors and exotics to trade. These pairs have much less liquidity and higher spreads – but can often provide excellent opportunities for profits. Again, due to the volatile nature of these pairs, beginners should probably steer clear until they have more experience in the market. FXCM employs a variable spread structure, meaning that spreads will fluctuate depending on liquidity levels and market conditions.
The platform is regulated by BVI, FSC and LFSA along with carrying insurance from AIG Professional Indemnity Insurance for Financial Institutions. Canadians have two options of taxation to select from – Section 988 and Section 1256. Those traders who expect to make more gains than losses are advised to choose Section 1256, which is based on the 60/40 rule. However, those traders who often lose, are encouraged to choose Section 988, where the tax rate remains stable both for gains and losses.
Best for Specialized Education Content: AvaTrade
Binary options trading for example, is illegal in Canada, whereas spread betting is in fact legal for Canadian traders. Derivative products like CFDs, while they are not legal with the neighbors in the USA, are legal to trade in Canada. Cryptocurrency trading is also legal in Canada and very much enjoyed by Canadian traders. In this line of thought, similar to other regulatory bodies across the globe (FCA, ASIC, CySEC, etc.), CIRO enforces a system of rules aimed at preventing the insolvency of brokers it regulates.
As you can see from the list above, there are numerous forex brokers to choose from, each having its own unique selling point and fee structure. We determined the best CIRO-regulated broker for each trader subset determining the overall winner. The core facts considered were fees (spread and commissions), trading platform, customer service and overall trading experience including execution speeds.
Trading Costs
You won’t have a problem finding a broker to meet your individual needs for trading in the forex market. As a forex trader, selecting a reliable and reputable broker is crucial for ensuring a seamless trading experience and maximizing your potential for success in the forex market. Here is a complete list of IIROC-regulated Canadian forex brokers we have tested; since 2022, Admiral Markets operates in Canada too. We picked OANDA as the best forex broker with the lowest spread and trading fees in Canada. Apart from MT4, Fortrade also offers its proprietary trading platform on the web and mobile. This feature enables traders to execute larger positions with a smaller capital outlay, as the remaining funds are borrowed from the broker.
FP Markets’ competitive spreads along with its fast execution speeds is why we rated the broker as the best ECN Forex broker for Canadian traders. FP Markets offers both a commission-based (Standard) and spread-based (RAW) account. When we tested spreads on both accounts, FP Markets was fairly competitive against the industry average. The launch of FOREX.com’s Trading Academy helped the broker make significant strides in our Education category.
From our extensive tests, we’ve established that Fusion Markets offers the lowest spreads when trading currency pairs. We tested 20 brokers to determine which has the fastest execution speeds and found that FP Markets ranked the highest in Canada. Our tests are done with an average execution speed recorded over 20 trades on the MT4 platform. FP Markets scored an average market order speed of 96ms, which is one of the fastest execution speeds we recorded. It’s always recommended to choose a broker that is well-regulated (preferably locally) and highly trusted.
- A commission-based trading account typically charges a commission to open and close a trade, the spread, and any overnight fees.
- This is great news because IIROC has some of the best rules anywhere in the world making Canadian Forex brokers amongst the safest in the world.
- FOREX.com’s Raw account, on the other hand, had tighter spreads from 0.0 pips on EUR/USD, but you had to pay $7.00 per lot traded, which is the norm for CIRO-regulated brokers.
Lastly, OANDA also offers a range of technical analysis tools and an expansive education suite, making the broker particularly suitable for beginners. There are also multiple platform options for social copy trading, including DupliTrade, ZuluTrade, and the MetaTrader signals market. However, all Forex brokers operating in Canada are subject to tight and sometimes complex regulation, and individual Canadian provinces have their own specific laws and regulations governing Forex trading.
Its actions contribute to safeguarding the interests of Canadian investors. CIRO monitors the activities of online brokers to maintain investor protection. It has the authority to investigate businesses mercatox review to ensure compliance and discipline any firms that violate the established rules.