Ins and Out of the Forex Brokers in Canada
Forex trading is not that popular in North American countries. But recently, many Canada brokers are emerging for Canadians. However, Canadians are not bound to trade with the forex broker Canada. Instead, they are allowed to trade with any brokers in the world. According to the experts, it is better to trade with the local brokers to get some advantages. As a Canadian, you should try the local broker first. Therefore best broker Canada can get you the desired outcome.
So, it is mandatory to know about the details of the best forex brokers Canada, which you will get throughout this article.
Regulatory Authority for the Forex Trading Canada
Canada brokers are actually classified as “investment dealers,” which are regulated by the Investment Industry Regulatory Organization of Canada, or IIROC. However, territory-based local authorities also regulate the brokers. But the IIROC itself is one of the best regulatory authorities in the world, which promotes safe trading with the forex broker Canada.
Unlike other countries, Canada has provenance based extra regulations on top of the IIROC. So, the best forex brokers Canada need to abide by both local regulation and IIROC. Obeying these regulations individually may create a hassle for the brokers and traders. However, the good thing about Canada is, it allows the citizens to trade via any broker from anywhere in the world. Besides, anyone from outside of Canada can also trade with regulated forex trading broker Canada.
How to Choose a Forex Broker Canada?
Choosing a forex broker Canada mainly depends on your resident as different provenance has a different rule about trading. So, choose your broker first according to your territory. However, forex trading Canada is divided into three different parts which are-
- Montreal & Quebec – Autorité des Marchés Financiers
- British Columbia – British Columbia Securities Commission.
- Toronto – Ontario Securities Commission
Know your territory, and then search for the list of the available brokers in your location. However, you can follow some tips while looking for the best Canadian forex brokers.
Best Forex Brokers in Canada
- 200+ tradable assets
- Choose between 4 trading platforms
- Competitive spread pricing on raw account
- Mobile Trading: Available
- ECN: Available
- Currencies: 45+
- Axi Mobile Trading: Available
- Currencies: 80+
- Web Trading: Available
Tips to Choose the Best Broker Canada
While looking for the brokers in your territory, some shortcuts may come in handy.
- Must choose the broker which is regulated by the Industry Regulatory Organization of Canada, or IIROC.
- Search for the broker that provides the best forex trading platform Canada. However, you may compare different Canadian forex broker reviews to know who offers the best platform.
- Next, you may look for a broker with a speedy server to get the fast execution speed. A lightning-fast execution speed can ensure you the best prices while trading.
- When you are looking for the best forex brokers Canada, you should definitely go for the one that provides excellent support. For example, the brokers should provide easy contacting options.
- Canada brokers will provide the tight spreads while it may also offer between fixed and floating spreads.
How to Check the Forex Trading Broker Canada with IIROC?
When you find a reasonable forex broker Canada, you must check that with the IIROC listing to eliminate any doubt. However, it is not a difficult task. You can check the broker through its license number. So, you will have to get the license number first from their website or customer service. Then, you will need to match that number with the IIROC database. If it gets matched with the database, your selected forex broker Canada is well regulated and has the license from IIROC.
You can follow an alternative method, which is, search the broker’s name on the “Dealers We Regulate” page. In addition to that, you will also have the option to check with the provenance-based authorities.
What Personal Information wants the Forex Brokers Accepting Canadian Clients?
IIROC regulated best forex brokers Canada needs to ask you for some mandatory information.
- Your Name
- Marital Situation
- Dependents’ number
- Funding sources
- Your net worth
- Net income
- Social Insurance Number
- Your risk acceptance level
- Your investment goals
- Relevant trading experience
- If there are any politically exposed family member
To start trading with a broker, you must need to answer each question one by one in the application form.
Alberta Rule for the Traders
Alberta requires some additional info from the traders before accepting the trading application. However, you may not trade without complying with any of the criteria.
- You should have a minimum of $1,000,000 in financial investment.
- The last two year’s minimum income should be $200,000.
- $5,000,000 property investments.
- You are a bank or financial institution.
If you comply with any of these four rules, you can become an investor.
Best Forex Trading Platform Canada
To get the full benefits from forex trading Canada, a good platform is necessary. But you will not know about a platform unless you start trading. For that, you may open a demo account and observe the following stuff to see if it is the best forex trading platform Canada.
- Best forex broker Canada offers a user-friendly platform that is uniquely designed and also easy to navigate.
- The platform should consist of some risk management features so that the trader can reduce their potential losses.
- Multiple charting features will give you an overall idea about the market and the instrument you are trading. So, look for the charts and graphs the platform offers.
- With the addition of the tech to the forex platform, copy trading became easy. Check the platform how efficiently they offer the copy trading features.
- Indicators are the game-changer, especially if it is customizable. Customizable indicators let you analyze and initiate trading strategically.
Sometimes you may not find all these trading platforms’ features together unless you choose the MetaTrader 4 forex brokers or the MetaTrader 5 forex brokers.
How are the Traders in Canada Protected?
IIROC has highly descriptive rules for the brokers. As a result, the traders are protected automatically as no broker can do cheat or harmful stuff with the traders. However, IIROC cannot help you with the brokers outside of the country.
Best broker Canada seems very impressive while providing the service to the traders. However, the regulators in Canada are committed to protecting the investors as well as brokers. As a result, few best forex broker Canada started providing brokerage services.
Furthermore, Canada brokers provide the best trading platform along with top-notch customer service except few. So, if you follow the guideline we have provided above, you will end up getting the best forex broker Canada.