The best CFD broker Canada and the best forex broker Canada are similar, but not the same thing. Getting to know both and why there is a difference is a challenge we are happy to undertake for you.
Feel free to either take the time to understand how to find the best online brokers in Canada regardless of the end instrument, or jump straight to the winners in the list below.
Despite the fact that Canada has a multitude of regulations governing financial trading, there are not that many online brokers in Canada offering support to local residents. Let’s take a look through those that do, and build a shortlist of the best online forex and CFD brokers Canada has that are worth mentioning.
Online Brokers In Canada Form Part Of A Highly Developed Financial Services Sector
There are a growing number of forex and CFD brokers that are interested in Canada, and this trend shows no sign of slowing down. The North American market is one that is highly sought after by the best brokers in Canada and it is easy to see why.
The largest Country by landmass in North America, and home to the second largest population there is a large addressable market to a forex broker in Canada. Current statistics put the number of residents at 37 million, with a GDP of $1.73trillion earning a placing back in the top 10 nations globally.
Whilst Canada is highly developed economically, it could be said that the volume of regulation on financial services is a little restrictive to innovation that online brokers are becoming known for.
Forex and CFD regulators in Canada Are Plentiful
The main forex and CFD regulators in Canada are the IIROC (Investment Industry Regulatory Organization of Canada) and the CSA (Canadian Securities Agency). To be rated as the best forex broker Canada, you will want to a platform with local regulation to market services to the local population. This is a basic essential and non optional.
Along with the above, there are a further 13 regional forex regulators, along with the 2 main national regulators that have made things a little more difficult to understand. Compared to many other countries that only have a single regulator, the 15 locally can make navigating the industry pretty complicated for an online forex broker in Canada.
The regulatory complexity is one of the main reasons for the lower number of forex brokers Canada have operational despite the interest. That being said, for those that do operate here, the stringent regulations ensure that local traders are very well protected. This can only be seen as a positive.
CFD Brokers Canada Represent A line of separation in North America
Unlike their North American neighbors the USA, CFD trading and CFD brokers Canada are able to operate under the regulation of the IIROC.
This provides residents of Canada with the option to engage in CFD trading contracts and use leverage similar to that of Europe and other global financial services hubs.
The Best Forex And CFD Brokers Revealed – Canada’s Most Innovative
1. AVATRADE – One of the best regulated forex and CFD brokers Canada has hits the mark on innovation
AvaTrade Canada have IIROC regulation via their tie up with Friedberg Direct. This sits proudly alongside BOI, CySEC, JFSA, FSCA, KNF, ASIC, MiFID and BVI licences. With such an extensive culture of regulation, AvaTrade can be trusted as a broker committed to delivering a global service, with a local touch.
Seeing as there are not that many strong regulated brokers locally, being one of the best forex brokers Canada is not a huge list. That being said, AvaTrade are not here just due to regulation, but for being a global force as a CFD broker that delivers all around the world for many. The score held on Trustpilot by AvaTrade is currently 4.7 out of 5, so there is clearly something that is being done right consistently.
The recent launch of AvaTrade Go to provide a World Class mobile app has won numerous awards and positions AvaTrade as an innovator in the forex trading space. This app makes trading on mobile as simple as it could be, and with a great market insights tool.
The addition also of the ‘AvaProtect’ feature gives traders a rather unique product on which to manage risk. We delve more into this during the detailed review found here but essentially it allows you to take what is in essence an insurance policy against your trades in the event they are losing ones. Quite a novel feature that will appeal to many as a risk management tool.
AvaTrade provide a very wide range of instruments that can be traded in one simple platform. Forex, CFDs, stocks, options, indices, and commodities can all be traded here with very competitive conditions. The combination of Friedberg Direct and the AvaTrade platform really are a perfect match for the Canadian trader.
There is a relatively low entry point to begin your forex or CFD trading journey in Canada. With AvaTrade, you can start on a free demo account, or with a minimum deposit of just $100.
Overall AvaTrade rank very well amongst the best forex brokers in Canada across many categories but excel as the best CFD broker Canada. If you are looking for a safe place to trade, this is one broker that fits the bill.
WHAT WE LIKE
- Great trading app
- Feature rich platforms
2. CMC Markets – A really solid forex broker worthy of a top 3 position.
MINIMUM DEPOSIT – $100
REGULATION – IIROC, FCA, BaFin, ASIC
INSTRUMENTS – FOREX, CFDs, STOCKS (CFDs), COMMODITIES, OPTIONS
This is a forex broker Canada with multiple Tier 1 regulations across the globe, first and foremost making CMC Markets a safe place to trade. With more than 27 years of experience in the online trading world, this is truly one of the original names and has been a mainstay amongst award winners ever since.
You have thousands of instruments available to trade on the excellent platform offered. CMC Markets trading platform has been aptly named ‘Next Generation’, with lots of additional features that deserve some attention.
An IIROC regulated forex broker with an office in Toronto shows CMC Markets are an International broker with a local presence. Customer support is available locally with high quality service on either telephone +1-866-884-2608 O or email to [email protected] .
It must be said that this is a forex broker that has a great offer, with low spreads and a strong educational offering. If you are considering one of the best forex brokers for CFD trading in Canada, put CMC Markets on your shortlist, or check them out here.
3. Forex.com – performing well as a Forex Broker Canada under regulation of IIROC (GAIN capital brand)
MINIMUM DEPOSIT – $25,000 for DMA account, $500 Regular
REGULATION – IIROC, FCA, ASIC, CFTC, JFSA, MAS, SFC
INSTRUMENTS – FOREX, INDICES, COMMODITIES, OPTIONS
Best In Canada For : Trading forex with Direct Market Access provided your account size can support. A platform that delivers around the world with a regulatory framework that would make almost all other forex brokers jealous.
A beast in the North American market that is definitely deserving of a place in the the top 3 of best forex broker Canada lists.
4. Admiral Markets Canada – Added IIROC regulation to a global CFD trading giant with Tier 1 regulators
MINIMUM DEPOSIT: £$€ 100
REGULATION : IIROC, FCA, CySEC, ASIC, EFSA
INSTRUMENTS : FOREX, CFDs, STOCKS, INDICES, ETFs, COMMODITIES
Now that Admiral Markets Canada has been launched and fully furnished with the CFD trading stamp of approval in Canada by IIROC, this is a CFD broker that will make waves with Canadian traders.
With a huge range of trading instruments, supported by an equally impressive range of trading platforms from the MetaTrader suite, Admirals is a broker that has been taking strides over the more than 20 year history that are nothing short of impressive.
There are always downsides to every CFD broker, and in the instance of Admiral Markets Canada, it is that there are not a huge range of cryptocurrency CFDs to trade here. That being said, you will find plenty of choice in the stocks, ETFs, forex, and general CFD trading range.
Spreads are low, customer service quality is high, and the reputation of Admiral Markets around the world is one of a professional, secure, and trusted forex broker Canada will likely be happy to embrace.
Being Considered As the best forex broker Canada Is No Easy Feat : What Is The Criteria?
We have listed some key criteria that are most important to the best brokers in Canada when considering this list of forex, CFD and online brokers.
Below you can find the 8 most important topics that helped us shape the list.
1. IIROC Regulated Brokers make up the best brokers Canada.
As we have mentioned in this guide above, the regulators in Canada are many, but the IIROC is the one we need to keep an eye on. You can find the list of regulated Canadian broker dealers here.
There are a few other internationally regulated brokers that do accept Canadian residents as clients, but we would be ultra selective about including any of these. This is mainly due to the additional complications that residents may encounter if they ever had to raise an issue against their broker.
2. Deposit and withdrawals should be easy, with plenty of choice.
Online brokers these days have a huge range of options that they can consider when they are evaluating which payment services to provide to their traders. There should be a wide range of different types of payments accepted, ideally without any unnecessary transaction fees.
We have noticed that there has been a move more recently between certain brokers to implement fees in areas other than the typical spreads or headline places that traders might check first. Withdrawal fees are one of these areas that has been used, and we will not include in our Canada list any brokers who are exploiting this.
3. Helps to have a really competitive fee mode to feature amongst the best forex broker Canada
This will always generate some extra points when rating the best forex and CFD brokers. Irrespective of the Country you are resident of, minimising costs would definitely be high on the agenda.
Keeping spreads, transaction fees, and brokers’ commissions low cost helps to better your trading balance. The best forex broker Canada, whether you are trading online with forex, CFDs, or stocks should deliver this as standard.
4. Trading on mobile should be a feature, rather than an after-thought.
Forward thinking online brokers in Canada should now show a real dedication to providing the best mobile interface, with the features that traders actually want to use.
Forex is moving online, and very much into the hands of the mobile user. Traders in Canada will need to have a fully operating broker, delivering as many of the core features found on the desktop version as one can fit into a modern smartphone.
5. The best online brokers in Canada offer the popular markets and commodities for trading
Whilst the Canadian Dollar (CAD) is not classed as one of the ‘major’ forex currencies, but falls into the category of one of the ‘minors’ it is important to have available. This classification can at times make it more difficult to trade CAD at the same preferential low spreads as you might expect from the major currencies.
We have delved into the value that each broker can offer, particularly in respect of CAD spreads, seeing as it is undoubtedly a currency that carries particular interest to Canadian based traders.
There are 4 stock exchanges in Canada, including the TSX, TSXV, Neo, and the CSE. The largest of which, the TSX ranks in 9th place on global securities exchange lists, by market capitalization.
The TSX, like the Canadian economy, is very rich in natural resources and commodities; containing more oil, gas, and mining companies than any other global exchange. It is of no surprise then that locals may wish to trade commodities, and indices via CFD brokers Canada.
6. All the best brokers offer access to a free demo account without trading or time limits.
All the best online brokers offer free demo accounts all around the world these days. It will likely not be possible to find multiple stock brokers that provide such an account, but amongst forex and CFD brokers in Canada, this is essential.
This point carries particular importance as when evaluating strategies, new currency pairs, and other instruments, every trader should use a demo account in some shape or form to test. Once you have found an optimal way to use the account, and instrument together, only then consider moving into a real life environment.
7. The trading platform both online and in app form in both of Canada’s national languages is a necessity for top brokers.
Language support is an important consideration for a forex or CFD broker to be considered amongst the best. Whilst most Canadians have their primary language listed as English, there are some 20%+ who are most comfortable in French.
Canada has a very well established multi-lingual population, but it is still necessary to provide language support in French, aswell as English in order to give the best possible trading offer.
There are many small data points in both forex and CFD trading that would be much easier to interpret when you can navigate in a native language.
8. Customer Service is a vital part of any service provider and for online brokers is particularly important.
Having a strong level of customer support is important for the best online brokers in Canada, particularly as it is an online service. In any Country this is true, but in Canada, and North America in general, it takes on extra weight.
Each of the support agents should be knowledgeable, quick to respond, helpful, and ideally multi-lingual.
It also needs to be noted that to be a forex broker Canada, you would want to have support services operating during core local working hours, and during the entirety of the North American forex trading session.
CFD Trading Canada Edition Explained
If you’re looking for an opportunity to trade CFDs in Canada, you’ll find a wide range of instruments and strategies available. CFD trading in Canada is growing in popularity, as investors look for ways to take advantage of price movements in a variety of markets.
Whether you’re interested in commodities, indices, or cryptocurrencies, there are numerous trading platforms and strategies available to Canadian traders.
There are a number of factors that make CFD trading in Canada particularly attractive. For one, the regulatory environment is highly favorable, with the best CFD brokers in Canada regulated by the Investment Industry Regulatory Organization of Canada (IIROC) or provincial regulators like the Ontario Securities Commission (OSC).
This ensures that your broker is held to strict standards of financial stability and customer protection. Additionally, the Canadian dollar is a major currency, so you’ll find plenty of liquidity when trading CFDs in Canada.
Finally, because CFD trading allows you to take advantage of both rising and falling prices, it can be an ideal way to hedge your portfolio or speculate on market movements.
If you’re interested in CFD trading in Canada, there are a few things you’ll need to know before getting started. In this guide, we’ll cover the basics of CFDs, along with some tips and resources to help you get started.
What is CFD Trading?
A contract for difference (CFD) is a type of derivative instrument that allows you to speculate on the price movements of underlying assets. Unlike traditional investments, you don’t actually own the asset when you trade CFDs.
Instead, you’re simply entering into a contract with your broker to pay or receive the difference in price from the time you open the position to the time you close it. Because CFDs are traded on margin, you can also leverage your capital to potentially magnify your profits (or losses).
CFD trading in Canada is available on a wide range of assets, including commodities, indices, stocks, and cryptocurrencies. And because CFDs are derivatives, they can be traded on both rising and falling markets.
This flexibility is one of the main reasons why CFD trading has become so popular in recent years. Whether you believe a market is about to go up or down, you can potentially profit from your forecast by opening a CFD position.
Of course, because you’re only speculating on price movements and don’t actually own the asset, there’s also the potential to lose money when trading CFDs. This is why it’s important to understand the risks involved before getting started.
How Does CFD Trading Work?
CFD trading works by allowing you to speculate on the price movement of an underlying asset. There are two types of contracts available: buy (long) contracts and sell (short) contracts.
When you enter a buy contract, you believe that the price of the underlying asset will go up in value. This means you’ll pay an upfront margin and then make a profit when the price moves in your favor, less any fees or commissions charged by your broker.
Alternatively, if you enter a sell contract on an asset, you believe that its price will fall. You’ll receive an upfront margin and then make a profit when the price moves down, less any fees or commissions charged by your broker. However, there’s also the potential to lose money if the market goes against your position.
Some common CFD trading analysis strategies
There are many different approaches to trading CFDs in Canada, each with its own advantages and disadvantages. Some popular types of strategies to look out for include:
– Technical analysis: By carefully analyzing past price movements, you can potentially identify trends and profitable trading opportunities in the market. This can be done using a variety of technical indicators such as moving averages, relative strength index (RSI), or Bollinger Bands.
– Fundamental analysis: In contrast to technical analysis, fundamental analysis focuses on underlying economic factors to determine if an asset is likely to go up or down in value. For example, you might research industry trends, interest rates, inflation rates, or global events that could influence the value of the asset.
– Automated CFD trading: Many traders use automated software programs known as “robots” or “bots” to help them analyze market data and make trade decisions. These programs can be very effective in identifying profitable trading opportunities, but they also require a good understanding of technical analysis and risk management principles.
Whether you’re just starting out or looking for a more advanced strategy, there are many different approaches to CFD trading that can potentially help you. By doing your research and choosing from the best CFD brokers in Canada, you can get started with confidence.
Is CFD Trading Legal In Canada?
Yes. CFD trading is both legal, and regulated in Canada; providing Canadian based traders with plenty of options to consider from an instrument and trading perspective. Although CFD trading is legal, you will want to choose from one of the best regulated CFD brokers in Canada to ensure the platform you are trading on is under the regulatory oversight of the IIROC. Put simply, it is safer that way.