The multi-billion Forex trading industry flourishes in modern and powerful countries. Canada is no exception. The beaver and hockey country is also known for excellent Forex brokers. This article is aimed to help you find the best Forex brokers in Canada.
Unlike Australian FX brokerages and the USA ones, Canada’s broker companies do not have to be located in Canada. As a trader, you can choose local or internationally located companies (seated in New York or London, for example).
Forex trading in Canada takes place under the supervision of the Canadian Securities Administrators (CSA) maintaining high standards for the Forex brokerage industry. They work similarly to USA and UK financial regulation bodies.
By implementing high requirements, they create a protective safety net for customers, traders and investors.
Best Forex Brokers Canada: Questions to Ask
If you are looking to register with a Canadian broker, it is always a good idea to contact the CSA and make an enquiry about the broker you are interested in. They will equip you with information about all registered Forex brokers Canada.
If you are looking for a Canada-based or internationally-based best Forex brokers Canada, take into consideration the following factors:
- Do they offer bonuses on deposits?
- Do they offer low commissions?
- Is the support multi-lingual (if you are a foreigner)?
- Is the customer support effective and do they reply quickly?
- How many payment varieties do they provide?
- What is their policy on payouts?
- Are the platforms they offer suitable for my needs?
- Do they offer good quotes?
- Do they provide enough currency pairs and leverages?
As a beginner, it will not be difficult to find answers to these questions, once you know what criteria and benchmarks are to be followed. The above questions will be helpful in finding the best Forex brokers Canada.
The Authority behind the Curtains
Canadian Securities Administrators (CSA) is the force behind the Canadian Capital Market that ensures a fair trade and a safe market. Every year, the CSA issues an enforcement report displaying all actions related to fraud, illegal distribution, misconduct, illegal insider trading, etc.
The members of the CSA are found in all the three territories and the ten provinces. The ten provinces and three territories teamed up to reduce the administrative barriers and through cooperation, they work more efficiently and avoid duplicate work, i.e. now they streamline regulation processes for capital investment companies. They harmonized the rules in all the provinces, and now, companies operate under the same laws and they have to follow the same regulations.
Since their website offers so many accurate data and warns people of frauds and suspicious companies, many people trust the organization and hence, they feel safe with Canadian Forex brokers who are regulated by the members of this joint government body.
As a beginner, make sure to choose a broker under national regulation, given that they are more reliable and safer to deal with
What to Observe when Looking for Top Forex Brokers?
Many Forex brokers Canada offer quite attractive conditions to join their team and customer base.
Forex Exchange is a dynamic business that attracts many traders where some want to try their luck with predictions, and others try to profit on a set of analytical strategies – usually professionals who are equipped with statistics knowledge on the currency movements.
Everyone can adjust to a market that meets the demands of so many different groups of people. The brokerage companies try to predict and meet the requirements of their customers, whether they are new or good old pros.
The Main Criteria for best Forex Brokers Canada
Besides the regulation issue and the strict control policies, another option should also be met to qualify as an appropriate Forex broker.
As mentioned above, the majority of Canadian Forex brokers will cover all the needs of their customers. For example, all of them run one or more platforms with an attractive and user-friendly interface. These platforms have to include the market watch app followed by a graphic app that displays the movement of trends and the history of the trader, as well as the history of trends.
Note: The history of trends is not a reliable indicator of the current trends, so do not rely 100% on it when trading.
Also, the Stop Loss option comes in convenient if you are a beginner as it prevents you accruing major losses. You determine the parameters on this option (manual settings).
Demo accounts are provided for the very fresh and inexperienced in the market. Make your first steps into this market with this account where you can check how it works without risking real money.
Nevertheless, some demo accounts require a small deposit. If the deposit is not high, it is an acceptable option.
Once you’ve tested how it works, decent brokers will have a standard or middle account for investing real money. Most brokers offer a VIP account as well for passionate traders who are hard-core professionals with thorough experience.
Customer Support System
All decent brokers maintain a customer support system, the only question is, is it useful? We all have witnessed, at least once in a lifetime, where the custom support gave us only general guidelines where we explicitly asked for specific information, leaving us short of our answer and just stating the obvious.
Most brokers employ customer support staff, but the best brokers will train their staff to be competent and polite to all sorts of clients. The customer support should develop a quick-reply system and be available to you around the clock during the work week. Customers can be in an urge to ask something important, and they should not be left waiting when the broker boasts that they could rely on the customer support.
In short, make sure that the broker of your choice has a decent customer support at disposal.
Currency Pair Variety, Narrow Spreads, and High Leverage
Spreads and leverage are also the rule in this business. Try to find narrow spreads and high leverages (they indicate liquidity) and a multiple choice of currency pairs.
As a beginner, always be aware that the narrower the spreads, the greater the chance to save your money. The best Canadian brokers offer narrow as well as wide-spread currency pairs. As a beginner stick to the narrow spreads.
Leverages can be the backbone of your profit-earning, but the risk of losing money is too high if you are at the beginner stage. No matter how tempting it seems, try to restrain yourself from leverages at the beginning, especially when high leverages are offered up to 1:400 or 1:500.
As a customer, you should be able to choose between multiple options or products. In this case, you should have the possibility to choose between multiple currency pairs. Look for broker companies that offer you a decent number of currency pairs. Yet again, as a beginner, you should not start trading in too many currency pairs until you get a hold of the situation and the market.
Look for brokers that are not hesitant when it comes to payouts and withdrawals. Some really good brokers offer a 24-hour payout, while others pay you out on the same day. These brokers are the ones you should try to find.
To sum up the above mentioned, always look for a registered Canadian broker, whether within or outside Canada, that is regulated by a national body.
Find a broker that corresponds to your demands and needs regarding a great platform, payment methods, fast payout, variety of currency pairs, and a stable leverage and spread policy.
Always bear in mind that Forex trading can be risky as it can be lucrative and entails negative as well as positive sides. Trade wisely to turn your investments into profits.