Forex trading in Canada

Forex trading is legal in Canada, and quite popular too. With the increasing interest in the world of online trading, Forex has also experienced a rather strong increase in the number of traders making deals in the currency exchange market.

The first step anyone hoping to be called a Forex trader has to take is to choose a broker that matches their trading style and level of expertise. Choosing among the best Canadian Forex brokers is easy.

To make sure the broker you are choosing is legit, make sure they are registered with the appropriate regulatory bodies. In Canada, the main regulatory body, the Investment Industry Regulatory Organization of Canada (IIROC), but also the Canadian Securities Administrators (CSA) are in charge of assuring the transparency of the brokers’ operations in the market, as well as protect the traders’ information and their money.

However, in Canada, there are a few more entities in charge of overseeing the Forex market, depending on the region. In Toronto, we can find the Ontario Securities Commission, while for the region of British Columbia the regulatory entity in charge is the British Columbia Securities Commission. Lastly, in the Montreal and Quebec area, there is the Autorité des Marchés Financiers.

What is Forex?

Forex trading, also normally called FX, is the exchange of one currency for another. This type of trading takes advantage of the fluctuations in the value of diverse currencies and creates the possibility of making a profit.

With a total daily volume of Forex trading reaching 5 trillion dollars, this market is very active and liquid. In fact, the Forex market is known as the largest and most active, being open 24 hours a day, 5 days a week. This creates opportunities for fast and considerable returns, with the proportional risk that comes with dealing in the currency exchange market.

How do traders make money on the Forex market?

In case you are wondering how is possible to make a profit by exchanging currency, we are going to explain how to process works. What interests traders is the interest rate differential between two currencies.

The exchange rate is always changing and this is what investors can take advantage of in order to make a return. The rapid changes in the market also mean that while there is a very attractive chance to make good profits and increase your income, there is an equivalent high risk of losing money in the currency exchange market.

Brokers offer tools like leverage, which traders can use to maximize their chances to make a more significant return. However, care is recommended, since it also may increase the risk of losing your capital.

Best Forex Brokers in Canada

We have designed a shortlist of the best forex brokers in Canada to help newer traders looking into getting started in the curious and exciting world of Forex trading.

While there are many more among which to choose, investors, especially beginners, should research before committing to one or another. Plus, testing out their demo account is a good idea.

  1. IG. This broker has earned the position of the best overall Forex trading broker in Canada. IG is serious with their level of security, they offer low fees and commissions, and have a long reputation due to their great service.

CMC Markets. This broker has a long reputation for offering the lowest fees and having the most interesting variety of currency pairs in Canada. A good options for those looking into making Forex their career.

FOREX.com. This forex broker is one of the best for beginner investors. They have a very intuitive platform and excellent educational tools.

 

 

 

David Olagunju

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