Best Canada Forex Brokers for 2020

While most of you will prefer to simply choose one of our recommended brokers and start trading straight away, some of you might want to perform your own research prior to taking the plunge. This is actually a good idea as it will allow you to be 100% sure that the forex broker is right for your needs. For example, while you might have found a broker that is regulated in Canada and supports Paypal, it won’t be ideal if it doesn’t host your preferred trading pair.

As such, below we have listed the most important factors that you need to look out for before choosing a forex broker in Canada.

• Licensing

The most important factor that you need to look out for is whether or not the Candian forex broker is regulated. More specifically, the broker needs to be regulated and authorized by a tier-one licensing body. If you want to keep things local, then this should be from Canada’s IIROC. Other notable bodies include the UK’s FCA, Australia’s ASIC, and MAS in Singapore.

• Forex Pairs

Have you thought about the type of currency pairs that you wish to buy and sell? If you’re looking to trade the Canadian dollar, then you’ll want to choose a platform that hosts heaps of minors. With that said, you should also look to see what exotic pairs are supported if you want to gain exposure to the emerging markets. Fortunately, brokers allow you to see what pairs are supported prior to joining.

• Payment Methods

You should also check to see what payment methods the broker supports. Most platforms will support debit/credit cards and bank wires, as well as e-wallets like Paypal. However, you also need to explore whether there is a minimum deposit amount in place, and if the broker charges fees to use a specific payment option.

• Spreads and Commissions

Understanding how much your chosen broker is going to charge you to trade forex is also important. Firstly, look to see whether or not the platform charges trading commissions. If it does, this is usually on a variable-fee basis. For example, if the broker charges 1% and you trade $200, then you’ll need to pay $2 in fees.

Don’t forget, this is also applicable when you exit your trade. Regardless of whether or not a commission is charged, you will always need to pay a spread. This is the difference between the ‘buy’ and ‘sell’ price of a pair. Crucially, we would suggest sticking with Canada forex brokers that offer spreads of less than 1 pip.

• Trading Tools and Research

You’ll also want to ensure that the broker offers a comprehensive research department. This should include heaps of expert analysis, seminars, weekly trading tips, and fundamental news in real-time. For those of you with the ability to read charts, opt for a broker that offers heaps of advanced technical indicators.

• Customer Support

Finally, you should also check to see what the customer support department is like. Firstly, explore what hours the support team works. Ideally, this should be on a 24/7 basis. Secondly, explore what support channels are available. At a minimum, this should cover live chat, telephone support, and email. The final icing on the cake is if the broker offers a local Canadian toll number.