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Best Forex Brokers

Best Forex Brokers in 2025

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Discover
#1
Tier 1 regulation, including ASIC and FSA
#1Recommended Offer
Minimum deposit
$50
Assets to trade
CFDs, Forex, Stocks, Cryptos, Commodities
Fees
No fees on deposits/withdrawals
Trading software
MT4, MT5, TradingView
Assets to trade
CFDs, Forex, Stocks, Cryptos, Commodities
Fees
No fees on deposits/withdrawals
Trading software
MT4, MT5, TradingView
Low trading fees
  • Intuitive and customizable interface
  • Access to a complete trading academy
  • Ultra-fast order execution thanks to dedicated servers
  • Customer service available 24/7 via live chat and email
  • Intuitive and customizable interface
  • Access to a complete trading academy
  • Ultra-fast order execution thanks to dedicated servers
  • Customer service available 24/7 via live chat and email
With our partner Star Trader
#2
Broker specializing in Forex and CFDs
#2
Minimum deposit
$1
Assets to trade
CFDs, Stocks, Forex, ETFs, Commodities, Cryptos
Fees
Low spreads, no Forex fees, stock CFDs from $0.02
Trading software
MT4, MT5, NetTradeX
Assets to trade
CFDs, Stocks, Forex, ETFs, Commodities, Cryptos
Fees
Low spreads, no Forex fees, stock CFDs from $0.02
Trading software
MT4, MT5, NetTradeX
Ultra-competitive spreads
  • Wide range of instruments available, including ETFs
  • Competitive low spreads on major currency pairs and indices
  • Multilingual customer support available 24/7 via live chat, email, and phone
  • Wide range of instruments available, including ETFs
  • Competitive low spreads on major currency pairs and indices
  • Multilingual customer support available 24/7 via live chat, email, and phone
with our partner IFC Markets
#3
Broker regulated since 2006
#3
Minimum deposit
$100
Assets to trade
CFDs, Forex, Stocks, Commodities, Cryptos
Fees
0€ deposit and withdrawal fees
Trading software
MT4, MT5, ctrader, TradingView
Assets to trade
CFDs, Forex, Stocks, Commodities, Cryptos
Fees
0€ deposit and withdrawal fees
Trading software
MT4, MT5, ctrader, TradingView
No-cost trading, wide choice of assets
  • Standard and demo accounts available
  • Competitive spreads
  • Support available 24/5 via live chat, email and phone
  • Registered with FCA, CySEC, CBI, ASIC
  • Standard and demo accounts available
  • Competitive spreads
  • Support available 24/5 via live chat, email and phone
  • Registered with FCA, CySEC, CBI, ASIC
With our partner Avatrade
Broker specializing in Forex and CFDs
Minimum deposit
$100
Assets to trade
CFDs, Stocks, Forex, Crypto, Commodities, Indices
Fees
Spreads from 0.0 pips
Trading software
MT5
Assets to trade
CFDs, Stocks, Forex, Crypto, Commodities, Indices
Fees
Spreads from 0.0 pips
Trading software
MT5
Ultra-competitive spreads
  • Standard, raw and demo accounts are available
  • Competitive spreads
  • Regulated in Australia (ASIC)
  • 24/5 support via live chat, email and phone
  • Standard, raw and demo accounts are available
  • Competitive spreads
  • Regulated in Australia (ASIC)
  • 24/5 support via live chat, email and phone
with our partner Focus Markets
Broker specialized in ETFs, Stocks and CFDs
Minimum deposit
$0
Assets to trade
Stocks, ETFs, CFDs
Fees
No commission and no brokerage fees
Trading software
Xstation 5
Assets to trade
Stocks, ETFs, CFDs
Fees
No commission and no brokerage fees
Trading software
Xstation 5
  • Standard and demo accounts available
  • Competitive spreads [no commissions or brokerage fees on equities and ETFs].
  • Registered with several regulators
  • 24/5 support via live chat, e-mail and phone
  • Standard and demo accounts available
  • Competitive spreads [no commissions or brokerage fees on equities and ETFs].
  • Registered with several regulators
  • 24/5 support via live chat, e-mail and phone
. . .
With our partner XTB
PROMO CODE : OFFER2025
Minimum deposit
$0
Assets to trade
Stocks, ETFs, bonds, mutual funds, options
Fees
$8.75/transaction
Trading software
Qtrade
Assets to trade
Stocks, ETFs, bonds, mutual funds, options
Fees
$8.75/transaction
Trading software
Qtrade
  • Standard accounts available
  • Educational resources included
  • Earn up to 5% in cash bonuses
  • IIROC registered and CIPF covered
  • Reputable customer support, available by phone and email
  • Standard accounts available
  • Educational resources included
  • Earn up to 5% in cash bonuses
  • IIROC registered and CIPF covered
  • Reputable customer support, available by phone and email
Minimum deposit
$1000
Assets to trade
Stocks, ETFs, options, GICs, bonds
Fees
$4.95 to $9.95 per transaction
Trading software
IQ Edge, Questrade
Assets to trade
Stocks, ETFs, options, GICs, bonds
Fees
$4.95 to $9.95 per transaction
Trading software
IQ Edge, Questrade
  • Low commission
  • Educational resources included
  • IIROC registered and CIPF covered
  • Chat, phone and email support available weekdays
  • Minimum deposit: 1000$
Pros
Cons
  • Low commission
  • Educational resources included
  • IIROC registered and CIPF covered
  • Chat, phone and email support available weekdays
. . .
With our partner Questrade
Minimum deposit
$0
Assets to trade
Stocks, ETFs
Fees
No commission on shares
Trading software
Wealthsimple
Assets to trade
Stocks, ETFs
Fees
No commission on shares
Trading software
Wealthsimple
  • Standard accounts available
  • Low commissions
  • IIROC-registered and CIPF-covered
  • Chat and email support, renowned for its accessibility
  • No educational resources
Pros
Cons
  • Standard accounts available
  • Low commissions
  • IIROC-registered and CIPF-covered
  • Chat and email support, renowned for its accessibility
. . .
With our partner Wealthsimple
Minimum deposit
$0
Assets to trade
Stocks, ETFs, funds, bonds, options
Fees
Spreads from 0,00 pips
Trading software
MT4, MT5
Assets to trade
Stocks, ETFs, funds, bonds, options
Fees
Spreads from 0,00 pips
Trading software
MT4, MT5
  • Very low trading fees, among the most competitive on the market.
  • No hidden commissions, ideal for traders on a budget.
  • Powerful tools and great flexibility.
  • Responsive and efficient customer support, available 24/5.
  • Registered with ASIC
  • Very low trading fees, among the most competitive on the market.
  • No hidden commissions, ideal for traders on a budget.
  • Powerful tools and great flexibility.
  • Responsive and efficient customer support, available 24/5.
  • Registered with ASIC
. . .
with our partner Fusion Markets
Table of Contents
  • What is Forex or the foreign exchange market?
  • What is a Forex broker?
  • How to choose a Forex broker?
  • Which Forex Broker is Best for a Beginner?
  • How to Trade Forex with an Online Broker?
  • Which Currency Pairs Should You Trade on Forex with an Online Broker?
  • What are the fees of Forex brokers?
  • What strategies for trading with a Forex broker?
  • What is the taxation on Forex income in Canada?

What is Forex or the foreign exchange market?

The Forex market (short for “Foreign Exchange”), also known as the currency or FX market, is the largest and most liquid financial market in the world. It operates 24 hours a day, five days a week, with a daily trading volume exceeding several trillion U.S. dollars. This market is based on the exchange of currency pairs, where one currency is bought while another is simultaneously sold. Each pair is written in the format XXX/YYY, such as USD/CAD (U.S. Dollar against Canadian Dollar) or EUR/JPY (Euro against Japanese Yen).

The first currency in the pair is called the base currency, and the second is the quote currency. For example, if the USD/CAD pair is quoted at 1.35, it means that 1 U.S. dollar is equal to 1.35 Canadian dollars.

Several key players are active in the Forex market. Central banks influence exchange rates through monetary policy decisions. Financial institutions and hedge funds execute large-scale transactions, while multinational corporations trade currencies to manage international operations. Finally, retail traders access the market through Forex brokers, which allow them to speculate on price movements using leverage.

Forex trading offers several advantages that appeal to investors. The market’s round-the-clock operation creates opportunities at any hour. Its high liquidity ensures rapid order execution with minimal slippage. Brokers often provide leverage, allowing traders to control larger positions with a relatively small amount of capital—though this also increases potential risk. Additionally, unlike the stock market, Forex trading allows investors to profit in both rising and falling markets by selling one currency against another.

What is a Forex broker?

Un broker Forex, ou courtier Forex, est une plateforme qui permet aux investisseurs d’acheter et de vendre des devises sur le marché des changes. Il sert d’intermédiaire entre le trader et le marché interbancaire, où les grandes institutions financières échangent des devises à grande échelle. Grâce aux brokers en ligne, le Forex est devenu accessible aux particuliers, qui peuvent spéculer sur l’évolution des taux de change depuis une interface intuitive et avec un capital relativement faible.

Forex brokers offer currency pairs such as EUR/USD, GBP/JPY or USD/CHF, and allow you to open positions with or without leverage, depending on the desired level of risk. They provide advanced tools to analyze the market, such as real-time charts, technical indicators and automated trading features. Some brokers also offer access to CFDs (Contracts for Difference), allowing you to speculate on currency fluctuations without actually owning the underlying asset.

Compare the best Forex brokers regulated in Canada.

How to choose a Forex broker?

Choosing a Forex broker is an essential step for trading currencies under good conditions. Several criteria must be taken into account to select the platform that best suits your needs and trading style. Here are the main elements to analyze before opening an account.

1. Regulation and Security of Funds

A trustworthy Forex broker should be regulated by a recognized financial authority, ensuring the protection of client funds and transparent trading practices. In Canada, reputable brokers are typically registered with:​

  • The Canadian Investment Regulatory Organization (CIRO) (formerly IIROC)
  • The Canadian Investor Protection Fund (CIPF)

CIRO-regulated brokers are required to:

  • Segregate client funds from company operating funds
  • Maintain minimum capital requirements
  • Adhere to strict reporting and compliance standards​

Additionally, CIPF provides protection for clients of member firms in the event of insolvency, covering up to CAD 1 million per account.​

To verify a broker's regulatory status, consult the CIRO's official website or the broker's disclosures.​

2. Type of Broker: Market Maker or ECN/STP

There are two main categories of Forex brokers:

CriteriaMarket Maker BrokerECN/STP Broker
Execution ModeCreates an internal market, taking the opposite side of clients' orders.Sends orders directly to the interbank market.
SpreadsFixed or slightly variable, generally higher.Variable spreads, often tighter.
CommissionsNone or very low; costs are built into the spread.Commission per traded lot, but more competitive spreads.
Execution SpeedFast, but risk of requotes during high volatility.Ultra-fast execution with no requotes, suitable for scalping.
Price TransparencyThe broker controls pricing and can adjust quotes.Direct access to real interbank market prices with no broker intervention.
Slippage (price changes)Possible during high volatility, as orders are processed internally.Less frequent, since orders are routed directly to the market.
LeverageOften high (up to 1:500 with some brokers).Limited according to regulation (the maximum leverage allowed for retail traders in Canada).
Target Trader TypeBeginners, swing traders, and occasional traders.Scalpers, active traders, and professional investors.
Possible Conflict of InterestYes, as the broker may act as counterparty to client orders.No, the broker does not trade against its clients.
Suitable ConditionsIdeal for traders looking for low fees without commissions and a simple interface.Best for those seeking fast execution and tight spreads, even if commissions apply.
Execution Mode
Market Maker Broker
Creates an internal market, taking the opposite side of clients' orders.
ECN/STP Broker
Sends orders directly to the interbank market.
Spreads
Market Maker Broker
Fixed or slightly variable, generally higher.
ECN/STP Broker
Variable spreads, often tighter.
Commissions
Market Maker Broker
None or very low; costs are built into the spread.
ECN/STP Broker
Commission per traded lot, but more competitive spreads.
Execution Speed
Market Maker Broker
Fast, but risk of requotes during high volatility.
ECN/STP Broker
Ultra-fast execution with no requotes, suitable for scalping.
Price Transparency
Market Maker Broker
The broker controls pricing and can adjust quotes.
ECN/STP Broker
Direct access to real interbank market prices with no broker intervention.
Slippage (price changes)
Market Maker Broker
Possible during high volatility, as orders are processed internally.
ECN/STP Broker
Less frequent, since orders are routed directly to the market.
Leverage
Market Maker Broker
Often high (up to 1:500 with some brokers).
ECN/STP Broker
Limited according to regulation (the maximum leverage allowed for retail traders in Canada).
Target Trader Type
Market Maker Broker
Beginners, swing traders, and occasional traders.
ECN/STP Broker
Scalpers, active traders, and professional investors.
Possible Conflict of Interest
Market Maker Broker
Yes, as the broker may act as counterparty to client orders.
ECN/STP Broker
No, the broker does not trade against its clients.
Suitable Conditions
Market Maker Broker
Ideal for traders looking for low fees without commissions and a simple interface.
ECN/STP Broker
Best for those seeking fast execution and tight spreads, even if commissions apply.

What type of broker should you choose?

  • Beginner : Market Maker (fast execution, no commission)
  • Advanced Trader: ECN/STP (more transparent execution, tight spreads)

3. Spreads and Commissions

Forex brokers primarily earn revenue in two ways:

  • Spreads: the difference between the buying price and the selling price of a currency pair. These can be fixed or variable.
  • Commissions: applied to each transaction, generally per lot of 100,000 currency units.

4. Leverage Offered

Leverage allows traders to amplify gains (and losses) by increasing position sizes with limited capital. In Canada, CIRO imposes leverage limits to protect retail traders:​

  • Up to 50:1 for major currency pairs (e.g., USD/CAD)
  • Up to 20:1 for minor and exotic currency pairs​

These limits aim to mitigate excessive risk. While some offshore brokers may offer higher leverage (e.g., 1:500), they often lack CIRO regulation and CIPF protection, increasing potential risks.​

It's advisable for Canadian traders to choose CIRO-regulated brokers to ensure compliance with national standards and safeguard their investments.

5. Available Trading Platforms

A good Forex broker should offer a platform that is both intuitive and efficient. The most popular options include:

  • MetaTrader 4 (MT4): Ideal for automated trading and advanced technical indicators.
  • MetaTrader 5 (MT5): An enhanced version of MT4 with access to more financial instruments.
  • cTrader: Known for its fast execution and high level of transparency.
  • Proprietary Platforms: Some brokers offer their own web-based or mobile trading platforms, designed to suit their specific client needs.

6. Deposit and Withdrawal Methods

A reliable broker should offer several methods for depositing and withdrawing funds easily. Check the available options:


💳 Credit card (Visa/Mastercard)
🏦 Bank transfer
📱 E-wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (Bitcoin, USDT, etc.)

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Hidden Fees

Some brokers charge withdrawal fees or impose long delays for processing requests.

7. The quality of customer service

A good broker should offer responsive and available customer service in case of technical or administrative problems. Before opening an account, test:

  • Contact methods: online chat, phone, email
  • Responsiveness: quick response and in English if possible
  • Availability: 24/7 support, especially during trading hours

8. Educational Tools and Resources

If you are new to Forex trading, choose a broker that offers:
📊 Webinars and online training
📈 Market analysis and trading signals
📘 Guide to learn how to use the platforms

Which Forex Broker is Best for a Beginner?

Choosing a Forex broker when you are starting out can be complex, as you need to prioritize a simple, secure platform with transparent fees. A good broker for beginners should offer:

  • An intuitive interface: a platform that's easy to learn, with clear tools and mobile access.
  • A free demo account: to practice without risk using virtual money.
  • Competitive fees: reasonable spreads and no hidden commissions.
  • Responsive customer service: available in English and accessible via chat, phone, or email.
  • Reliable regulation: a broker licensed by a recognized authority (such as the IIROC).
  • Access to educational resources: guides, webinars, market analysis, and tutorials.
  • Appropriate leverage: limited (maximum 1:50 in Canada) to limit risks and avoid rapid losses.
  • A wide selection of currency pairs: to trade major Forex pairs (EUR/USD, GBP/USD, USD/JPY...).

How to Trade Forex with an Online Broker?

Trading Forex with an online broker involves several key steps. 

1. Choose a Reliable Forex Broker

The first step is to select a regulated broker that offers an intuitive platform, competitive fees, and appropriate leverage. Check the following criteria:

  • Regulation by a recognized authority (such as the Canadian Securities Administrators).
  • Competitive spreads and no hidden fees.
  • Access to a high-performance platform (MetaTrader 4, MetaTrader 5, cTrader...).
  • Responsive customer service, potentially available in French.

2. Open a Trading Account

Once the broker has been selected, you need to create an account. The procedure generally includes:

  • Fill out a registration form with your personal information.
  • Verify your identity by submitting a piece of identification and proof of address.
  • Select the account type (standard account, ECN account, demo account, etc.).
  • Accept the broker's terms of use.

3. Depositing Funds into Your Account

To start trading, you need to fund your account via:
💳 Credit card (Visa/Mastercard)
🏦 Bank transfer
📱 E-wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (depending on the brokers)

4. Choosing a Currency Pair to Trade

Forex trading relies on trading currency pairs such as:

  • Majors: USD/CAD, GBP/USD, USD/JPY (the most liquid and the least volatile).
  • Minors: EUR/GBP, AUD/NZD (less traded but interesting).
  • Exotics: USD/ZAR, EUR/TRY (more volatile with higher spreads).

5. Analyze the Market and Define a Strategy

Before Opening a Position, Analyze the Market Using:

  • Technical Analysis: Use charts and indicators (like RSI, MACD, moving averages) to identify trading opportunities.
  • Fundamental Analysis: Monitor economic news (interest rates, inflation, employment data) to anticipate market trends.
  • Trading Plan: Define your objectives, acceptable risk level, and capital management strategy.

6. Placing a Trade Order

On your platform, you must:

  • Select the currency pair to trade.
  • Define the position size (in lots).
  • Choose the order type: ✅ Market order: immediate execution at the current price. ✅ Limit order: buy or sell at a defined price. ✅ Stop order: execution when the price reaches a certain level.
  • Add a stop-loss (to limit losses) and a take-profit (to secure gains).
  • Validate the order.

7. Manage Your Positions and Adjust Your Trading

Once the order is executed, it's important to monitor your trade in real time:

  • Adjust the stop-loss or take-profit according to market movements.
  • Follow the evolution of economic news that may impact the currency pair.
  • Close a position manually if necessary to secure profits or limit losses.

8. Withdrawing Your Profits and Optimizing Your Strategy

Once you have accumulated profits, you can request a withdrawal to your bank account or e-wallet. Remember to:

  • Check the withdrawal times and fees imposed by the broker.
  • Analyze your trading performance and adjust your strategy.
  • Continue to learn and improve through the broker's educational tools (webinars, market analysis, demo accounts, etc.).

Which Currency Pairs Should You Trade on Forex with an Online Broker?

Forex trading is based on the exchange of currency pairs, which are generally categorized into three main groups: majors, minors, and exotics. Each type of pair has distinct characteristics in terms of liquidity, volatility, and spreads. Below is a summary table of the most commonly traded currency pairs with online brokers.

CategoryCurrency PairDescriptionAverage Spread
MajorsEUR/USDEuro vs US Dollar – the most liquid and traded pair in the world.🔹 0.5 to 1.5 pips
MajorsGBP/USDBritish Pound vs US Dollar – volatile but very popular.🔹 1 to 2 pips
MajorsUSD/JPYUS Dollar vs Japanese Yen – moves often influenced by Japan's monetary policy.🔹 0.8 to 1.5 pips
MajorsUSD/CHFUS Dollar vs Swiss Franc – considered a safe-haven currency in uncertain times.🔹 1 to 2 pips
MajorsAUD/USDAustralian Dollar vs US Dollar – sensitive to commodity prices.🔹 1 to 2.5 pips
MajorsUSD/CADUS Dollar vs Canadian Dollar – influenced by oil price fluctuations.🔹 1.5 to 2.5 pips
MinorsEUR/GBPEuro vs British Pound – less liquid than majors, but still frequently traded.🔹 1.5 to 3 pips
MinorsEUR/AUDEuro vs Australian Dollar – influenced by both Asian and European markets.🔹 2 to 4 pips
MinorsGBP/JPYBritish Pound vs Japanese Yen – very volatile, with large price swings.🔹 2.5 to 5 pips
MinorsNZD/USDNew Zealand Dollar vs US Dollar – closely tied to commodity exports.🔹 1.5 to 3 pips
MinorsEUR/CHFEuro vs Swiss Franc – typically stable, but can be affected by SNB policies.🔹 2 to 4 pips
ExoticsUSD/ZARUS Dollar vs South African Rand – highly volatile, linked to precious metals.🔹 15 to 50 pips
ExoticsEUR/TRYEuro vs Turkish Lira – influenced by inflation and Turkish monetary policies.🔹 10 to 40 pips
ExoticsUSD/MXNUS Dollar vs Mexican Peso – sensitive to US economy and trade relations.🔹 10 to 30 pips
ExoticsGBP/SGDBritish Pound vs Singapore Dollar – low liquidity and high volatility.🔹 8 to 25 pips
Majors
Currency Pair
EUR/USD
Description
Euro vs US Dollar – the most liquid and traded pair in the world.
Average Spread
🔹 0.5 to 1.5 pips
Majors
Currency Pair
GBP/USD
Description
British Pound vs US Dollar – volatile but very popular.
Average Spread
🔹 1 to 2 pips
Majors
Currency Pair
USD/JPY
Description
US Dollar vs Japanese Yen – moves often influenced by Japan's monetary policy.
Average Spread
🔹 0.8 to 1.5 pips
Majors
Currency Pair
USD/CHF
Description
US Dollar vs Swiss Franc – considered a safe-haven currency in uncertain times.
Average Spread
🔹 1 to 2 pips
Majors
Currency Pair
AUD/USD
Description
Australian Dollar vs US Dollar – sensitive to commodity prices.
Average Spread
🔹 1 to 2.5 pips
Majors
Currency Pair
USD/CAD
Description
US Dollar vs Canadian Dollar – influenced by oil price fluctuations.
Average Spread
🔹 1.5 to 2.5 pips
Minors
Currency Pair
EUR/GBP
Description
Euro vs British Pound – less liquid than majors, but still frequently traded.
Average Spread
🔹 1.5 to 3 pips
Minors
Currency Pair
EUR/AUD
Description
Euro vs Australian Dollar – influenced by both Asian and European markets.
Average Spread
🔹 2 to 4 pips
Minors
Currency Pair
GBP/JPY
Description
British Pound vs Japanese Yen – very volatile, with large price swings.
Average Spread
🔹 2.5 to 5 pips
Minors
Currency Pair
NZD/USD
Description
New Zealand Dollar vs US Dollar – closely tied to commodity exports.
Average Spread
🔹 1.5 to 3 pips
Minors
Currency Pair
EUR/CHF
Description
Euro vs Swiss Franc – typically stable, but can be affected by SNB policies.
Average Spread
🔹 2 to 4 pips
Exotics
Currency Pair
USD/ZAR
Description
US Dollar vs South African Rand – highly volatile, linked to precious metals.
Average Spread
🔹 15 to 50 pips
Exotics
Currency Pair
EUR/TRY
Description
Euro vs Turkish Lira – influenced by inflation and Turkish monetary policies.
Average Spread
🔹 10 to 40 pips
Exotics
Currency Pair
USD/MXN
Description
US Dollar vs Mexican Peso – sensitive to US economy and trade relations.
Average Spread
🔹 10 to 30 pips
Exotics
Currency Pair
GBP/SGD
Description
British Pound vs Singapore Dollar – low liquidity and high volatility.
Average Spread
🔹 8 to 25 pips

Which currency pair to choose?

  • Beginner? → Prioritize major pairs (EUR/USD, USD/JPY, GBP/USD) for their tight spreads and liquidity.
  • Experienced Trader? → Opt for minor pairs (EUR/GBP, GBP/JPY) for more volatility and opportunities.
  • High risk appetite? → Exotic pairs (USD/ZAR, EUR/TRY) offer high potential gains, but with wider spreads and significant volatility.

What are the fees of Forex brokers?

Forex brokers apply different types of trading fees that can impact investor profitability. These fees vary depending on the type of broker (Market Maker or ECN/STP), the currency pair traded, and market conditions. Here are the main fees to be aware of before choosing a Forex broker.

1. Spreads (price differences between buying and selling)

The spread is the difference between the buy (Ask) and sell (Bid) price of a currency pair. This is the main fee applied by Market Maker brokers. It can be fixed or variable, depending on market volatility.

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Example of average spreads

  • EUR/USD → 0.5 to 1.5 pips
  • GBP/USD → 1 to 2 pips
  • USD/JPY → 0.8 to 1.5 pips

Tip: an ECN/STP broker generally offers tighter spreads but applies a commission per trade.

2. Transaction fees

Some brokers charge a fixed commission per lot traded, in addition to the spread. This model is common among ECN brokers, where orders are executed directly on the interbank market.

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ECN Commission Example:

5 $ to 7 $ per standard lot (100,000 currency units) for a round trip (buy + sell).

3. Swap Fees (Overnight or Rollover)

Swap fees are applied when you keep a position open after market close (generally 11 PM GMT). This cost depends on the interest rate differential between the two currencies in the traded pair.

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Exemple de swap

  • Sur EUR/USD, si l’euro a un taux d’intérêt plus faible que le dollar, un trader achetant l’EUR/USD devra payer des frais pour garder sa position ouverte.
  • À l’inverse, s’il vend EUR/USD, il peut recevoir un crédit (positif si la devise vendue a un taux plus élevé).

4. Currency Conversion Fees

If you trade a currency pair that is not denominated in your base currency (e.g., an account in CAD trading USD/JPY), the broker will apply a currency exchange fee.

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Example of Conversion Fees

A broker may charge 0.25% of the amount converted for a transaction in USD with an account in CAD.

5. Inactivity Fees

Some brokers charge inactivity fees if you don’t make any trades within a certain period (typically between 3 and 12 months).

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Inactivity Fees Example

15 CAD to 75 CAD per month after 6 to 12 months without trading.

6. Deposit and Withdrawal Fees

Brokers may charge fees when you deposit or withdraw funds from your trading account. These fees vary depending on the payment method used.

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Example of withdrawal fees

  • Bank transfer: fixed fees between CAD 7 and CAD 70 depending on the country and the bank.
  • Credit card: some brokers charge 1 to 3% of the amount withdrawn.
  • Electronic wallets (PayPal, Skrill, Neteller): fees between 0% and 3%.

What strategies for trading with a Forex broker?

Forex trading offers different strategies adapted to the profiles and objectives of traders. Some methods favour quick gains on small movements, while others focus on long-term trends. Here is a summary table of the main Forex trading strategies and their characteristics.

StrategyDescriptionExampleTrader Profile
ScalpingThe trader opens and closes positions in seconds or minutes to capture small price variations. Requires rapid execution and a reduced spread.Buying EUR/USD on an upward breakout with a gain of 5 to 10 pips in a few minutes.Experienced trader
Loves intensive and fast trading
Day TradingPositions are opened and closed on the same day, avoiding overnight fees. Objective: to take advantage of intra-day fluctuations.Buying GBP/USD at the opening of the London market and closing before the end of the US session.Active trader
Does not want to keep positions open overnight
Swing TradingThe trader keeps positions for several days to several weeks to capture longer trends. Less stress than scalping or day trading.Buying USD/JPY after a rebound on a key support and holding for 1 to 2 weeks.Patient trader
Looks for medium-term opportunities
Trend TradingFollow an upward or downward trend over a prolonged period, using technical indicators (moving averages, RSI).Selling EUR/CHF after a confirmed support break on the daily chart.Methodical trader
Suitable for long term profiles
Breakout TradingEnter a position after the break of a key level (support/resistance) to capture a rapid movement.Buying AUD/USD after an upward breakout of a consolidation channel.Dynamic trader
Loves rapid movements and trend confirmations
Carry TradingProfit from interest rate differentials between two currencies by remaining positioned in the long term.Buying USD/TRY to take advantage of the interest rate differential between the two currencies.Long term investor
Prefers less active trading
Hedging (coverage)Risk reduction by opening opposite positions on correlated pairs or with hedging options.Buying EUR/USD and selling GBP/USD to reduce exposure to the US dollar.Cautious trader
Ideal for protecting a portfolio in times of uncertainty
Grid TradingPlace multiple buy and sell orders at regular intervals, regardless of the direction of the market. Risky but effective strategy in a volatile market.Place long and short orders on USD/JPY every 20 pips in a consolidation zone.Advanced trader
Loves semi-automated strategies
Algorithmic TradingUse of trading robots (Expert Advisors) to execute orders automatically according to a defined algorithm.Using a scalping bot on EUR/USD that places orders based on moving averages.Tech-savvy trader
Prefers trading automation
Forex Trading Strategies
Scalping
Description
The trader opens and closes positions in seconds or minutes to capture small price variations. Requires rapid execution and a reduced spread.
Example
Buying EUR/USD on an upward breakout with a gain of 5 to 10 pips in a few minutes.
Trader Profile
Experienced trader
Loves intensive and fast trading
Day Trading
Description
Positions are opened and closed on the same day, avoiding overnight fees. Objective: to take advantage of intra-day fluctuations.
Example
Buying GBP/USD at the opening of the London market and closing before the end of the US session.
Trader Profile
Active trader
Does not want to keep positions open overnight
Swing Trading
Description
The trader keeps positions for several days to several weeks to capture longer trends. Less stress than scalping or day trading.
Example
Buying USD/JPY after a rebound on a key support and holding for 1 to 2 weeks.
Trader Profile
Patient trader
Looks for medium-term opportunities
Trend Trading
Description
Follow an upward or downward trend over a prolonged period, using technical indicators (moving averages, RSI).
Example
Selling EUR/CHF after a confirmed support break on the daily chart.
Trader Profile
Methodical trader
Suitable for long term profiles
Breakout Trading
Description
Enter a position after the break of a key level (support/resistance) to capture a rapid movement.
Example
Buying AUD/USD after an upward breakout of a consolidation channel.
Trader Profile
Dynamic trader
Loves rapid movements and trend confirmations
Carry Trading
Description
Profit from interest rate differentials between two currencies by remaining positioned in the long term.
Example
Buying USD/TRY to take advantage of the interest rate differential between the two currencies.
Trader Profile
Long term investor
Prefers less active trading
Hedging (coverage)
Description
Risk reduction by opening opposite positions on correlated pairs or with hedging options.
Example
Buying EUR/USD and selling GBP/USD to reduce exposure to the US dollar.
Trader Profile
Cautious trader
Ideal for protecting a portfolio in times of uncertainty
Grid Trading
Description
Place multiple buy and sell orders at regular intervals, regardless of the direction of the market. Risky but effective strategy in a volatile market.
Example
Place long and short orders on USD/JPY every 20 pips in a consolidation zone.
Trader Profile
Advanced trader
Loves semi-automated strategies
Algorithmic Trading
Description
Use of trading robots (Expert Advisors) to execute orders automatically according to a defined algorithm.
Example
Using a scalping bot on EUR/USD that places orders based on moving averages.
Trader Profile
Tech-savvy trader
Prefers trading automation
Forex Trading Strategies

What is the taxation on Forex income in Canada?

In Canada, profits from Forex trading are subject to taxation, but the applicable tax treatment depends on whether the Canada Revenue Agency (CRA) classifies your trading activity as capital gains or business income.​

1. Tax Treatment for Individual Traders

If your Forex trading is considered a hobby or an investment activity, profits are typically treated as capital gains. In this case, only 50% of the gains are taxable, and they are included in your income and taxed at your marginal tax rate. For example, if you earn $10,000 in capital gains, only $5,000 is taxable. This treatment is generally more favorable than being taxed on the full amount as business income.​

However, if your trading activity is frequent, substantial, and conducted with a business-like approach, the CRA may classify it as business income. In this scenario, 100% of your trading profits are taxable at your marginal tax rate. The CRA considers several factors when determining the nature of your trading activity, including:​

  • Frequency of trades
  • Duration of holdings
  • Time spent on trading activities
  • Intention to earn a profit

It's important to note that you cannot choose how your trading income is classified; the CRA makes this determination based on the specifics of your trading behavior. ​

2. Capital Gains vs. Business Income

Capital Gains:

  • Only 50% of the gain is taxable.
  • No deduction for trading-related expenses.
  • Losses can only be used to offset capital gains.
  • Reported on Schedule 3 of your T1 General tax return.​

Business Income:

  • 100% of the gain is taxable.
  • Eligible to deduct trading-related expenses (e.g., software, internet, education).
  • Losses can be used to offset other income.
  • Reported on Form T2125 (Statement of Business or Professional Activities).​

3. Example: Capital Gains Tax Calculation

Suppose you earn $20,000 in Forex trading profits, and the CRA classifies your activity as capital gains. Only 50% ($10,000) is taxable. If your marginal tax rate is 30%, you would owe $3,000 in taxes on these gains.​

4. Reporting Forex Income

All Forex trading income must be reported in Canadian dollars. Use the Bank of Canada's exchange rate on the date of each transaction to convert foreign currency amounts. ​

  • Capital Gains: Report on Schedule 3 of your T1 General tax return.
  • Business Income: Report on Form T2125, which is part of your T1 General tax return.​

5. Foreign Trading Accounts

If you hold Forex trading accounts outside of Canada, you must declare them to the CRA by filing Form T1135 (Foreign Income Verification Statement) if the total cost of all foreign property exceeds CAD 100,000 at any time during the year. ​

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Important

Failure to report foreign assets can result in significant penalties.

P. Laurore
P. Laurore
Finance expert
HelloSafe
Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.

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