Best Forex Brokers in Canada for 2024 (2024)

Yes, forex trading is legal in Canada. It’s always recommended to choose a broker that is well-regulated and reputable. Brokers must be licensed as securities brokers with what is now called the Canadian Investment Regulatory Organization, or CIRO, which combined the functions of the Investment Industry Regulatory Organization (IIROC) and Mutual Fund Dealers Association (MFDA). Brokers in Canada must also be registered in the province in which they operate. It’s worth noting that regulators in certain jurisdictions – such as the British Columbia Securities Commission – regulate more strictly than others.

Our top pick among forex brokers in Canada for 2024 is CMC Markets. CMC Markets is a widely recognized and reputable brand that is publicly traded (LON: CMCX) and regulated by the New SRO in Canada. CMC Markets offers an extensive range of 12,000+ tradeable investment products on its Next Generation web trading platform and mobile app.

The first step to trading forex is to choose a broker that accepts clients in Canada (see our top recommended brokers above).

1. Create a live account: Once you’ve chosen a broker, complete its online account application and read through its terms and conditions, which govern the scope of your relationship.
2. Learn the trading software: If you’re new to forex trading, it’s a good idea to try the broker’s demo, or virtual trading, account to get familiar with the platform (for more on virtual trading, see our guide to the best brokers for paper trading).
3. Fund with a small amount: To place real trades, you’ll have to fund the account with a deposit method the broker accepts, such as an electronic funds transfer or wire transfer.
4. Set trading goals: Consider what your overall goals and what you want to get out of trading in detail. Beyond the general desire to make money, being specific will help you articulate your trading approach better and manage risk.
5. Develop a trading plan: Consider the size of the trades you wish to place, relative to your account balance, and the amount of risk/reward you are targeting per trade, and overall on your account. Create rules to follow that will help keep you on track with your goals.
6. Identify investment opportunities: Whether by reading headlines, analyzing charts or trading signals, decide how to indentify when to enter the market and planning your exit with a stop-loss (to manage risk) and limit order (to take profit).
7. Position sizing: Once you have indentified a trade entry and want to execute your first trade, you will need to select a desired trade size that is appropriate for your risk/reward ratio and expected trade duration (it’s always prudent to know what the value of each pip/point is for a given trade size you are considering, so you can measure the risk/reward potential).
8. Execute a live trade: Once you are ready to place a live trade, you can do so for the desired amount by either clicking “Buy” or the “Ask” price to open a long position, or open a short position by clicking “Sell” or the “Bid” price, depending on your market outlook.
9. Manage your orders: You will have to get used to monitoring your positions carefully and ensure your stop-loss and limit orders are intact to help manage your risk/reward during the trade duration, or when canceling and replacing orders throughout your trading journey.

Yes, you can get started trading forex with $100; in fact, if you’re a beginner at forex trading, it’s smart to start small, and make sure not to invest more than you can afford to lose. Forex brokers generally offer a range of contract sizes (such as a micro lot), and a $100 investment would allow you to test the waters — and a trading strategy — without outsize risk. Bear in mind that also means the potential payoff will be limited as well. Note also that some forex brokers require a minimum account balance, which may be more than $100.

Yes, as a forex trader residing in Canada (or Canadian citizen abroad) you’ll be obligated to report your earnings in Canada and pay capital gains taxes on your profits, which must be listed on your tax return. The tax generally applies only to profits of more than $200; gains above that threshold are taxed at 50% of your marginal tax rate. As your specific tax obligation can vary according to other circ*mstances, it may be smart to consult a tax pro to assist, particularly for more active traders.