The Best Forex Brokers in Canada for 2024

The Forex trading industry is expanding at a rapid pace and more Canadian day traders are seeking to join the Forex markets. One of the main reasons for the increase in Forex trading is that investors can trade anywhere in the world at any given time. Unlike stocks that are listed on specific markets with closing hours, Forex currency pairs can be traded 24/7.

But what is the best Forex broker for Canadians? And, does a low-spread Forex broker exist with a good user experience?

This article reviews the best Forex broker available in Canada, their pros and cons and covers the most frequently asked questions about Forex brokers.

What are the best Forex brokers?

The best Forex brokers in Canada include AvaTrade, Fusion Markets, Questrade and XTB. While not all of them are headquartered in Canada, they serve Canadian Forex traders well by being regulated and reliable, while also being low-spread Forex brokers.

AvaTrade: The best Forex broker using MetaTrader

AvaTrade is one of the best Forex brokers in the world and has opened a partnership with Friedberg Direct, a regulated firm, in order to allow Canadians access to AvaTrade’s advanced trading technology with immediate execution and 24/7 technical support.

AvaTrade offers a wide range of currency pairs including major, minor and exotic pairs, with a maximum leverage of 1:30 and attractive spreads. No additional commission is charged for Forex trading. The broker uses the MetaTrader platform and has its own mobile application, AvaTrade Go. AvaTrade is regulated by multiple international financial bodies — principally by the Central Bank of Ireland. Customer support is available via livechat, phone and a website contact form.

Fusion Markets: Forex broker with competitive spreads

Fusion Markets is aMT4 and MT5 Forex broker founded in Australia with a mission to provide low fees, great support and high-end technology.

It is a popular choice among Forex traders in Canada, offering competitive spreads and access to over 90 currency pairs. The broker provides multiple trading platforms, including the popular MetaTrader, where traders can open an account on either MT4 or MT5. Fusion Markets is fully licensed and regulated by the ASIC, ensuring a secure trading experience. Fusion Markets customer support can be reached via phone, email or mail. Customer feedback about the support is particularly positive.

Fusion Markets strives to make Forex trading accessible and easy worldwide, making it an ideal Forex broker for Canadian traders.

Questrade: the best Canadian Forex broker

Questrade is a Canadian digital, low-cost Forex broker aiming to give Canadians a better and simpler trading experience. They are an 11x winner of Canada’s Best Managed Company award, boast of over $30 billion in assets under administration and have over 250,000 new accounts opened annually.

It offers one of the most diverse options in the currency market, with 116 currency pairs available. A major advantage of Questrade is the ability to open an account with a minimal deposit of just $1. The Questrade platform is known for its high-quality and secure environment. It is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) to ensure the safety of its clients. Questrade customer service can be reached Monday to Friday from 7:30 am to 8:00 pm by phone or through the broker's website.

XTB: the reliable and regulated Forex broker

XTB is one of the largest Forex and CFD brokers in the world with nearly 20 years of experience and offices in 13 countries. Like the other brokers listed here, XTB prides itself on providing advanced trading technology and good customer service while also relying heavily on trust.

XTB offers a user-friendly platform and an easy registration process. Additionally, XTB provides valuable educational resources and training to enhance the trading experience of its clients. It is overseen by multiple European regulatory bodies, ensuring a secure and safe environment for Forex trading.

XTB Forex even includes insurance for all of their customers, covering up to 1M EUR, AUD and GBP in cover in case of bankruptcy.

What is a Forex broker?

Online Forex brokers are an intermediary between a Forex investor and the currency pairs in which they wish to trade.

A Forex broker is most commonly an online brokerage company which offers day traders and investors access to a trading platform where they can buy and sell foreign currencies. These days, traders are often retail investors as opposed to large investment companies, and they invest relatively small amounts when speculating on the price movement of currencies.

In order to empower day traders, CFD Forex brokers often allow leveraged or margin trading which allows individuals to trade with more money than what they currently own. For the service of providing access to Forex markets and essentially lending money to traders, Forex brokers charge account fees, commissions and spread fees in order to make a profit.

How does Forex trading work?

Forex trading works by simultaneously buying and selling a pair of currencies. Similar to exchanging one currency for another before a trip, Forex traders buy currencies on a mass scale before exchanging the currency back when the exchange rate moves in their favour. The currency exchange between two currencies such as the United States Dollar (USD) and Canadian Dollar (CAD) is what is known as the currency pair.

Traders use online Forex brokers to get access to a vast range of currency pairs such as USD/CAD and will trade on the pair depending on the future outlook of their exchange rate.

Once you know how trading works, it is time to choose a Forex broker.

How to choose a Forex broker?

What to look for in a Forex broker comes down to what is most important to you. If you are going to be an avid day trader, investing large sums of money at a frequent rate then you will likely need the lowest spread Forex broker you can find. If, however, you are new to Forex and won’t dedicate too much time to trading, the best Forex broker for you as a beginner will be one with good educational materials and an intuitive interface.

Some other important criteria that will help you choose the top Forex broker include

• Training guides, tutorials and support: the best beginner Forex broker will have an extensive range of articles, guides and tools to help new traders understand Forex trading and learn to analyze currency behaviour.
• Analytical tools: from charting software to trade journals and time zone converters, the best broker for Forex trading will provide you with the right analytical tools to aid you in your investing.
• Spread, commissions and Forex broker fees: Forex brokers make money through various fees leveraged to your account and trading. The spread is arguably the most important as it is the difference between the buying and selling price of a currency pair. It is charged every time you trade so you want a Forex broker with the lowest spread possible.
• Regulated: it is incredibly important that you have an account with a Forex broker that is regulated by official authorities, either in your own country or abroad. These include the Canadian IIROC, in addition to several others such as CySEC, FCA or ASIC.
• Compensation security: you should consider Forex brokers that safeguard client accounts in case of insolvency. This can either be through specific insurance or through a financial compensation scheme such as being a CIPF member in Canada or FSCS in the UK.
• Investment diversification: if you’re looking to diversify your investments and not solely trade in Forex, then you will want a Forex broker with numerous asset classes available to trade. These can include equities, bonds, commodities, ETFs and funds to name a few.
• Customer support: customer support should always be at the forefront of top Forex brokers. You will inevitably have issues with your account and at this stage, you will want to deal with a good customer support team.

Below is a Forex broker list including some of the best brokerages available :

• AvaTrade Forex broker
• Fusion Markets Forex broker
• Questrade Forex broker
• XTB Forex broker
• IG Forex broker
• Forex.com Forex broker
• Saxo Capital Markets Forex broker
• CMC Markets Forex broker
• Interactive Brokers Forex broker
• FP Markets Forex broker

Compare their offers using our free comparison tool:

How to open an online Forex broker account?

Opening an online Forex broker account is a straightforward process once you have identified which Forex broker you want to use and usually only consists of four easy steps.

The first step is to visit the website of the Forex broker where you want to open an account and navigate toward their account opening page. Follow the account opening process by providing a valid email or username, a strong password and all the personal information that is required. Once completed, your account will be open.

However, before you can start trading you will have to verify your account. This is done by uploading proof of identity documents such as a government-issued ID, passport or driver's license, and you will likely have to provide proof of residency in the form of a utility bill or bank statement. The Forex broker will then review your documents and verify your account within a couple of days.

Lastly, you have to deposit money into your account. This can normally be done via bank transfer or sometimes with a bank card and once your money has been credited to your account you can start trading.

What is the best Forex broker for beginners?

The best Forex broker for beginners are companies that have extensive training tutorials, guides and demo accounts available for new members. You should therefore research and compare the tools available by the top Forex brokers as some are only suitable for experienced day traders.

Two of the best Forex brokers for beginners are AvaTrade and XTB.

What fees do you pay with a Forex broker?

A Forex broker makes money by charging fees on trades that are executed by accountholders. The fees that you pay your Forex broker can vary considerably but they usually include account fees, spreads, commissions and swaps. The most common fees are explained below.

• Account fees: Account fees are simply how much the broker will charge you every year for having an account with them. Since traders are looking for the cheapest broker with the lowest fees, most brokers have removed the account fee. Now it is often referred to as an inactivity fee or administration fee and you only have to pay the balance if you don’t actively trade.
• Spreads: Within Forex, the spread is the difference between the broker’s sell rate and buy rate when trading currency pairs. The narrower these spreads are, the less you pay per trade. For active traders, this is an important variable when trying to make a profit so it is important to find the lowest spread Forex broker if you plan to be an avid trader.
• Commissions: Commissions are effectively a service fee that is charged by the broker in order to execute your trade. This is more common when trading stocks and ETFs and less common for Forex brokers. For example, AvaTrade does not charge commissions on any Forex trades.

What is the lowest spread Forex broker?

The lowest spread Forex broker is the broker that offers the narrowest margin between the broker's sell rate and buy rate. Low-spread Forex brokers are therefore the cheapest option for Forex traders because the fees they pay when executing trades can be minimal.

However, Forex brokers change their spreads often so the lowest spread Forex broker may not always remain the same. Traders should therefore consider comparing Forex brokers based on the spread that they offer on the major currency pairs. The table below shows several low-spread Forex brokers and the spread they offer.

What is an ECN Forex broker?

An ECN Forex broker is an online Forex intermediary that specializes in the use of electronic communication networks (ECNs). The Forex ECN broker gives account holders and traders access to other currency markets that they normally wouldn’t have access to, thus increasing the opportunities for trades.

The ECNs match buy and sell orders between market participants directly without actively trading against the Forex investor. This allows ECN Forex brokers to have narrower spreads than traditional brokerages, although it should be noted that several do still charge commissions on executed trades.

How to check if a Forex broker is regulated and licensed?

Regulation of Forex brokers is of the utmost importance as only regulated brokers can be trusted to protect clients' accounts and funds. Canadians can easily check if the broker they are considering is regulated and licenced locally by checking their regulation status with the Investment Industry Regulatory Organization of Canada (IIROC). IIROC is the financial regulatory body in Canada which oversees all investment dealers and trading activity on specific markets in Canada.

If a Forex broker is not regulated locally, then you must at the very least ensure that they are regulated in a trusted location and by a regulatory body. A list of the major regulatory bodies around the world can be seen below.

• IIROC of Canada
• AMF of France
• BaFin for Germany
• FCA of the UK
• ASIC for Australia
• FINMA of Switzerland
• CySEC for Cyprus
• MFSA for Malta

What is CFD in Forex?

Forex CFDs are Contracts For Difference that allow traders and investors to trade currency pairs using leverage while only having a small initial capital. Also known as margin trading, leverage allows traders to borrow funds from the CFD Forex broker to increase the size of their trade above and beyond the amount of money that they actually have.

Trading using CFDs and leverage is incredibly risky due to the nature of trading borrowed money and while a leveraged trade can increase profits, it can also lead to drastic losses. Those intending to invest with leverage should look for the best CFD Forex brokers that allow clients to open CFD accounts.

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Patrik Shore Ex: Financial Crime Investigator

Patrik Shore has nearly a decade worth of experience in the financial industry and has been writing for HelloSafe over the past year. Having started his career investigating financial crime to moving on to financial planning, Patrik has a deep understanding of all things personal finance.