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AuthorBy Chris Cammack
Updated: October 22, 2020

Forex trading in Canada is popular and the industry is well-organised, though regulation is strict and it could be easier to get started.
All the brokers on this list are regulated either by the Investment Industry Regulatory Organization of Canada (IIROC) or one of the three major international regulators, and have been selected based on their trading conditions and the care they show their customers. 

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The best Forex brokers in Canada 2021

Last updated on 22 Oct 2020
Updated 22 Oct 2020
by Editorial Director Chris Cammackby Chris Cammack
Chris Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
AvaTrade
Min. Deposit
GBP 100
4.484.48
Min. Spread
0.90 pips
Fx Pairs
50+
REGULATED BY
Overall Rating
11110.54.48/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.9 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 72% of traders lose money with this provider.
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Good value, beginner-friendly and hugely respected in the UK, AvaTrade is one of the most reputable brokers in the industry. With support for the leading trading platforms and top-quality multilingual support, AvaTrade has built a brand on a solid reputation and continues to add to that reputation with the recent addition of AvaProtect – an automated loss-protection tool – to its product lineup.

AvaTrade offers UK clients trading in Forex, commodities, cryptocurrencies, exchange-traded funds, options, bonds, and equities and is a good choice for any type of forex trader ranging from beginners to scalpers and intraday traders to long-term traders.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
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2
Pepperstone
Min. Deposit
GBP 5
4.614.61
Min. Spread
0 pips
Fx Pairs
80+
REGULATED BY
Overall Rating
11110.54.61/ 5
AlertAccepts UK Clients. Average spread EUR/USD 0.09 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.
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Founded in 2010, Pepperstone is an Australian ECN broker known for tight spreads, ultra-fast trade execution and broad platform support. Pepperstone’s award-winning, 24-hour support provides the foundation for its excellent customer service, where personalised assistance is available via several methods.

As our highest rated pure ECN broker, if you want to pay a small commission for tighter spreads, you won’t find a better broker than Pepperstone.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
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    3
    IG Markets
    Min. Deposit
    GBP 250
    4.694.69
    Min. Spread
    0.60 pips
    Fx Pairs
    93
    REGULATED BY
    Overall Rating
    11110.54.69/ 5
    AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.
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    One of our highest rated brokers, IG Markets is a market-maker with only the single account for Forex trading, but spreads are tight and educational and analytical materials are excellent. A wide choice of platform (including MT4) is also available and customer service is world-class.

    With regulation from the FCA and ASIC, and winner of the Broker of the Year 2018 (UK Forex Awards) and Best CFD Provider 2017 (Investment and Wealth Management Awards), IG Markets is an attractive choice for both beginner and experienced traders.

    Pros
    • Well regulated
    • Tight spreads
    • Great platform choice
    • Excellent education
    • Excellent market analysis
    Cons
    • High minimum deposit
    Read More About IG Markets
    4
    XM
    Min. Deposit
    GBP 5
    4.384.38
    Min. Spread
    0.60 pips
    Fx Pairs
    57
    REGULATED BY
    Overall Rating
    11110.54.38/ 5
    AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.
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    XM Group has achieved substantial growth since opening in 2009, earning 1.5 million clients in 196 countries. XM’s operational philosophy is aimed at client satisfaction and low client turnover; they earn client loyalty through award-winning 24/5 personal customer service, varied account types and competitive trading conditions.

    Regulated the FCA, CySEC and ASIC and the recipient of many industry awards, XM Group stands out from a crowded field of market maker brokers for their customer service and educational support.

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    • Fast and free withdrawals
    Cons
    • Dealing desk
    Read More About XM
    5
    FP Markets
    Min. Deposit
    GBP 100
    4.234.23
    Min. Spread
    0 pips
    Fx Pairs
    60+
    REGULATED BY
    Overall Rating
    11110.54.23/ 5
    AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.
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    FP Markets is an ASIC-regulated, STP broker with simple account options and an exciting set of tools for traders with higher minimum deposits. Spreads are tight, even on the Standard Account, and the lack of dealing desk intervention for all accounts removes any concern over conflict of interest.

    Both the MT4 and MT5 platforms are supported and trader education and market analysis are well-presented, structured and useful. Overall, FP Markets is an excellent choice for beginner and more experienced traders alike.

    Pros
    • Well regulated
    • Tight spreads
    • Good range of accounts
    • Great customer support
    Cons
    • Expensive withdrawals
    Read More About FP Markets
    6
    Tickmill
    Min. Deposit
    GBP 100
    4.124.12
    Min. Spread
    0 pips
    Fx Pairs
    60+
    REGULATED BY
    Overall Rating
    11110.54.12/ 5
    AlertAccepts UK Clients. Average spread EUR/USD 0.20 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 73% of traders lose money with this provider.
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    Tickmill offers low spreads and commission, fast STP execution on the MT4 platform and has an excellent reputation in the CFD trading industry.

    Regulated by the FCA in the UK, CySEC in Europe, and the Seychelles FSA internationally – and a regular winner of trade execution and trading conditions awards – Tickmill has the reputation, and the performance, traders should look for in a broker.

    Pros
    • Tight spreads
    • Well regulated
    • Fast and free withdrawals
    • Wide range of assets
    Cons
    • MT4 only
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    7
    FXCM
    Min. Deposit
    GBP 50
    4.134.13
    Min. Spread
    0 pips
    Fx Pairs
    40
    REGULATED BY
    Overall Rating
    11110.54.13/ 5
    AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA. 76.31% of traders lose money with this provider.
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    Founded in 1999, FXCM is an FCA-regulated market marker with tight spreads and support for the MT4 platform.

    Though it has a strong focus on educating new traders, FXCM also offers innovative trading tools and a wide range of specialty platforms for experienced traders. Customer support is excellent and FXCM’s flagship platform, Trading Station, has won multiple awards for its intuitive layout and customisability. Traders will also benefit from FXCM’s enhanced execution model across all popular currency pairs and CFDs.

    Pros
    • Well regulated
    • Great platform choice
    • Excellent education
    • Innovative trading tools
    Cons
    • Limited demo account
    Read More About FXCM
    8
    IC Markets
    Min. Deposit
    GBP 200
    4.464.46
    Min. Spread
    0.10 pips
    Fx Pairs
    60
    REGULATED BY
    Overall Rating
    11110.54.46/ 5
    AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.
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    IC Markets presents itself as the best and largest true ECN broker. It is ASIC and CySEC regulated and offers the MetaTrader4, MetaTrader5 and cTrader platforms. IC Markets is highly recommended to both new and experienced traders looking for faster execution and tighter spreads.

    Beginner traders will find the IC Markets account structure welcoming and simple to understand. IC Markets understands customer retention involves a combination of tighter spreads, cutting edge technology, fast trade execution and top quality customer service.

    Pros
    • Well regulated
    • Tight spreads
    • Wide range of assets
    • Great platform choice
    Cons
    • High minimum deposit
    • Limited market analysis
    Read More About IC Markets

      Forex Trading in Canada

      The Canadian Forex industry is one of the most tightly regulated in the world. The federal oversight body, the Investment Industry Regulatory Organization of Canada (IIROC) regulates all locally registered Forex brokers and is in turn supervised by the Financial Institutions Supervisory Committee (FISC), a political body which provides policy direction and strategic leadership for all financial regulators in the country.

      In addition, each of the thirteen provinces has its own powerful financial regulatory bodies, the largest and most active being the Ontario Securities Commission, based in Toronto.

      A Tiered Leverage System

      IIROC regulated brokers are subject to strict limits on the amount of leverage they can offer. Maximum leverage available is dependent on where a currency pair sits in a tiered system of currency groups. These currency groups are set by the regulator and are pairs are generally assigned to a group based on market volatility for that pair. As volatility for individual currency pairs is always fluctuating, the minimum margin required for trading also changes frequently and the IIROC regularly updates the system with the new requirements. Leverage can vary from 1:4 to 1:100, though the maximum generally available to retail traders is 50:1.

      IIROC also enforces a strict Know Your Customer (KYC) process, which requires brokers to confirm not only your address, identity and social insurance number but also to complete a full background check to verify age, marital status, occupation, net worth, dependents, financial knowledge, and financial experience. You will also need to disclose any professional relationships with foreign governments and the source of all your trading funds must be independently verified.

      Stricter Regulations for 2020

      The IIROC recently indicated their desire to follow in Europe’s footsteps by imposing stricter regulations on the Forex market, and on the CFD market in general. A two-stage process has been started; stage one requires the pre-approval of any leveraged CFD products (including Forex) by the IIORC before it can be sold to Canadian consumers. This is more of a symbolic gesture at this point, as Quebec has required preapproval for some time and the IIROC already has the ability to ban any leveraged product it doesn’t feel meets regulatory criteria. While not a massive change for the industry, stage one has already been published for public comment.

      Stage two has yet to be discussed in detail but we do expect it to contain restrictions on leverage and possibly some of the other regulatory changes made by ESMA in Europe in 2018/19. These restrictions will be published by February 2020 and we will update this page when they are announced.

       

      References

      Featured Brokers

      Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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