Forex trading used to be regarded as a dangerous activity to make investments, better left to professionals to deal with. While there is no doubt that the Forex market can represent exciting opportunities, there is an innate risk that traders must learn to keep under control.
All that said, nowadays, it’s easier than ever to learn the basics and get started trading currency.
There is a lot of information online, especially when it comes to the daunting task of choosing the right broker for you. Sites like https://investingoal.com/canada-forex-brokers/ can help make a wise decision that will be the first in the path to becoming a successful Forex trader.
In fact, doing research, and also experimenting in the Forex market, practicing with the tools available, for example, a demo account, can make a huge difference when traders start to invest their own money and trade currencies by themselves.
Do not overlook the tools available and set up clear priorities when looking for a broker, it will make a huge difference.
How does Forex work in Canada?
Residents of Canada that are looking into starting trading in the world of Forex have a wide variety of brokers to choose from. Choosing the right broker for you, adapted to your level of expertise, experience, and trading style, is of utter importance.
When it comes to Forex, we have to say it is legal in Canada. Brokers, however, must comply with a variety of very strict rules which may seem a bit too much compared to other countries.
The ultimate goal is that traders and their money are protected.
In Canada, each province has its own rules and regulations. Investors planning to invest across the country need to do their homework regarding the rules in each province.
In Canada, several regulatory bodies control the activity in the Forex market. They are in charge of assuring brokers operate with transparency and following the appropriate conduct.
Canada is tightly regulated by the following entities: the Canadian Securities Administrators (CSA), the Investment Industry Regulatory Organization of Canada (IIROC), the National Futures Association (NFA), and the Commodity Futures Trading Commission (CFTC).
Each of these regulatory bodies oversees and manages a different aspect of the financial agencies investing in the forex market.
All of them have the same ultimate goal: to guarantee the safety of investors and traders and that of their money.
Best Forex Brokers in Canada
We have narrowed it down for traders looking for the perfect Forex broker. This is our choice.
Plus500. A broker that has been considered the best overall broker for beginners in Forex thanks to its intuitive platform and interesting tools. Their execution time is among the best too and they offer quality customer service. Even if there is always a risk when dealing in the market, having a reliable broker helps keep it under control.
IG. A good choice for a broker, especially when it comes to beginner traders. They are famous for offering competitive costs and a variety of educational tools.
IG has been awarded as the best overall Forex broker in 2021.
eToro. A famous broker with an international reputation thanks its specialization in social trading and copy trading.
eToro is one of the preferred brokers for beginners and also more experienced Forex traders thanks to their unique tools and competitive costs.
CMC markets. A great broker for those traders committed to becoming successful in their investments. They have a wide diversity of educational tools, very appropriate for beginners and those starting in the world of Forex. Worth mentioning is that their online trading platform is of the latest technology and very reliable.