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Choosing the Right Forex Broker in Canada

Forex broker CanadaForex broker Canada is one of the best places you can ever visit for helpful information about forex trading. Are you new to forex trading in Canada and you are looking for how to get started? We will always have your back and guide you every step of the way. With the assistance, we provide here, it’s a question of time before you can become a successful forex trader in Canada.

We take our time to review the forex trading industry in Canada and use our wealth of knowledge to assist you. Are you among the traders that record consistent loss in forex trading? You are always welcome on our website if you want to turn things around in your favor. The information we provide here will help you to make more profit from forex trading.

Best Canada Online Forex Brokers in 2020

Forex Broker Minimum Deposit Trust Rating Visit Site
Easy Markets Canada
CAD 1
98.85%
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Avatrade Canada
CAD 150
99.11%
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FXChoice Canada
CAD 150
98.52%
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About Forex Broker Canada

The information available on our platform will also help you to choose the right forex broker. This way, you can trade forex without being swindled by any forex broker. You will never get it wrong when you partner with us for information on how to trade forex in Canada. You can visit us at www.forexbrokercanada.ca for more helpful assistance on how to become a successful forex trader. We will also assist you with your choice of a good forex broker.

Who is a forex broker?

A forex broker is a company that offers financial service in the forex market. The broker offers a trading platform to its customers so that they can buy and sell currency pairs. Bear in mind also that forex stands for Foreign Exchange. Trading in forex occurs in pairs also, but that will not be the focus of this information.

You can also refer to a forex broker Canada as an institution in Canada that allows Canadian residents to trade forex in the country. Refer to a forex broker as a currency trading broker. You can also call the broker retail forex broker. They all mean the same thing.

Who is a forex broker?

The forex broker makes the forex market available 24 hours of the day and 5 days of the week. The broker offers different types of currency pairs. It is the responsibility of the trader to decide the pair he wants to trade on the trading platform. This is one of the many things to consider when choosing a forex broker Canada. You are better off with a broker that provides many currency pairs. This will improve your experience when you trade on that platform. The forex broker makes it possible for currency investors and speculators to trade forex and make a profit from it.

What role does a broker play?

currency tradingA forex broker Canada makes it possible for speculators and investors to trade on currencies from the G10 countries. The currencies are mixed to form different pairs. Examples of the currencies are:

  • United States Dollars (USD)
  • Pounds Sterling (GBP)
  • Euro (EUR)
  • Japanese Yen (JPY)
  • Swiss Franc (CHF).
  • Australian Dollars (AUD)
  • Canadian Dollar (CAD)
  • New Zealand Dollars (NZD)

Aside from the currencies above, you can also find some other currencies on many brokers. The currencies belong to countries called emerging markets. You can only open a trade on any of the currency pairs via a forex broker.

A good example of a currency pair is EUR/USD. When you buy the EUR/USD on a forex broker Canada platform, it means that you are buying the Euro and selling the USD at the same time. The reverse is the case if you decide to sell the EUR/USD. In this case, you will be selling the Euro and buying the USD.

Power of a broker

Forex trading is one of the best ways to make some cool money for yourself. If you are looking for how to earn an extra income online, then you can try forex trading. Forex trading will help you to make money online and you can do so in the comfort of your home. Trading forex at home will help to reduce the stress of making money offline. While it is true that you can make a lot of money by trading Forex, you also need to know that it has risks.

You must closely consider the risks also so that you can always make the right decisions when trading forex. It is true you can make a lot of money from forex trading. At the same time, you can end up with a lot of losses. So, you must be careful when you trade forex so that you will not end up recording more losses than wins.

One way to improve your chance of making money from forex trading is to employ the service of a good forex broker. If you do not get it wrong when choosing a forex broker Canada, then your chance of making a profit will be very high in forex trading. The forex broker contributes a great deal to your success or failure in forex trading. Some brokers are unreliable and they manipulate the market to make the trader lose. You need to consider factors like this before you choose a forex broker Canada.

How to choose the right forex broker

You will come by so many forex brokers operating in Canada today. They all claim to be reliable but, unfortunately, not all of them are reliable. You need to first determine the level of trust of the forex broker before you register there. If you are new to the forex market in Canada, it may be somewhat difficult for you to make the right choice among the many brokers available here. Do you find yourself in this situation and you do not know what to do? The information in this section will enlighten you and help you to make the right choice among the many brokers available. You will never get it wrong at any time if you follow the tips in this section when choosing a forex broker here in Canada.

Read reviews

You should never register with any of the brokers in Canada until you read reviews about the brokers. First, find out how reliable or otherwise the broker is before you register there. The reviews will tell you quite a lot about the forex broker Canada and help you to decide if you should go for that broker or not. What is the best way to read reviews about forex brokers in Canada? The best way to do that is to read the reviews from reliable sources of information only. If you read the reviews from neutral sources of information, you will be able to make an informed decision about that broker. This will help you to make the right decision when choosing the forex broker here in Canada.

Regulation is essential

You must never register with a broker in Canada until you are sure that the broker is under regulation. The body responsible for the regulation of forex brokers operating in Canada is the Investment Industry Organization of Canada (IIROC). This organization is a non-profit outlet. It came up in 2008 after the merging of the Market Regulation Service. It is never safe to trade with a forex broker that is not under regulation. Regulation protects you and your account from any untoward conducts of forex brokers. Some forex brokers are wont to cheat their clients, but the regulatory agency ensures that this does not happen. This way, the trader can trade forex under a safe condition.

The IIROC has the responsibility of controlling all the brokers in Canada. It also oversees all trading activities in the country as far as derivatives and equity are concerned.

Role of the regulatory bodies in Canada

As we mentioned earlier, the IIROC is the organization that oversees the activities of forex brokers in Canada. The organization issues license of operation to a qualified forex broker Canada. The organization also has the power to revoke the license of any forex broker operating in Canada. The revocation can come up if the broker fails in its responsibility to meet the terms of regulation. For a broker to remain operational in Canada, that broker must never violate its regulatory framework at any time. The regulatory agency oversees the activities of these brokers and also monitors everything they do. All the bookers must carry out their activities in compliance with the high standard set by the agency.

Aside from the IIROC, another regulatory agency in Canada is the Canadian Securities Administrators (CSA). The CSA serves as an umbrella regulatory agency in Canada. Its duties have to do with the improvement of the Canadian financial market. The CSA also has the task of coordinating and harmonizing the financial market. The strict regulation is put together to protect the interest of the forex trader in Canada. Canada has three territories and 10 provinces. The CSA has all the regulatory bodies in each of these territories and provinces under its umbrella.

Bear in mind that each of the provinces in Canada has its specific regulatory agency. In Quebec, for example, the regulator for the financial market is the Autorite des Marches Financiers (AMF). The forex market regulator in British Columbia, on the other hand, is the British Columbia Security Commission. Furthermore in Ontario, the regulatory agency is the Ontario Securities Commission and The Financial Services Commission. So, you are always protected irrespective of which province or territory you decide to trade forex in Canada. A forex broker Canada will, therefore, not be able to swindle you at all.

Trading platforms available

One other very important thing to consider when choosing a forex broker Canada is the trading platform available. Forex brokers offer different categories of trading platforms. Virtually all of them offer the MT4 trading platform. You can also find many of them offering the MT5 trading platform. Be that as it may, the MT4 trading platform is the most popular, and most forex traders use it. You will rarely find a forex broker that does not offer the MT4 trading platform in Canada. Additionally, you can find many brokers offering proprietary trading platforms and some of them offer WebTarder platform. Whatever the case may be, you should only consider a broker that offers the kind of trading platform that suits you most. As a beginner, you should consider a broker offering the MT4 trading platform.

Education opportunity

Aside from the trading platform, you also want to consider the educational materials available on the trading platform. A good forex broker Canada will offer a series of educational materials that will enable the trader to learn as much as possible about the forex market. As a beginner in forex trading, you will find such educational materials to be very useful. They can help you to understand how the forex market works. They can also you to develop your own trading strategy. If you are a beginner, this is one of the most important features to consider in a forex broker in Canada.

Trading tools

A good forex broker will provide you with a series of trading tools that will make your trading experience a wonderful one. For example, a good forex broker will offer many currency pairs and several instruments. A good broker will also provide charting tools and so on. These tools will always help you to make the right trading decisions in forex. Some experts think that you should only focus on a broker that offers the particular currency pair you have interest in.

Quality of the customer service

One other very important thing to consider when choosing a forex broker Canada is the quality of the customer service. It is very important to first consider the reliability of the customer service before you register with the broker. Check also if the broker offers a series of contact methods that can help the trader to communicate very easily. Do not forget to equally consider how long the broker had been in the forex market.

Studies show that many of the brokers that had been around for long are more trustworthy. This is not to say that new brokers may also not be reliable. It only means that there is rarely adequate information to determine the reliability of the broker. If you closely consider all the points above, you will never get it wrong when choosing a forex broker in Canada.