Best Forex Brokers Canada for 2023

Yes, forex trading is legal in Canada. It’s always recommended to choose a broker that is well-regulated (preferably locally) and highly trusted. Forex trading in Canada is regulated provincially; each Canadian province is regulated by its own respective regulatory authority. It’s worth noting that regulators in certain jurisdictions – such as the British Columbia Securities Commission– regulate more strictly than others.

With the important caveat that we cannot provide tax advice, it should be said that residents of Canada must report all income to the Canadian Government – including capital gains made from trading forex. How your tax professional may elect to apply any such gains or losses you have from trading in the financial market may vary depending on your unique circumstances.

It may be best for Canadian citizens or residents to consult a tax professional to determine any potential Canadian tax obligations. If you are not a Canadian resident or citizen, then you must report your global income from forex trading in the country of your permanent residence.

To open a forex trading account in Canada, it’s important to start by selecting a forex broker that is well-regulated and properly licensed in Canada by the Investment Industry Regulatory Organization of Canada (IIROC). Once you’ve chosen a forex broker, you can follow this step-by-step guide to getting started with forex trading in Canada:

1. Complete the live account application process with your forex broker and read through the applicable terms and conditions.
2. Next, you’ll need to fund your new brokerage account. Choose your preferred deposit method, and make sure you are starting with an amount you can afford to risk.
3. Check out a demo (or, virtual trading) account to familiarize yourself with the broker’s trading platform. Get comfortable with the broker’s website and product offerings, and consume any available educational content.
4. Put together a trading plan. Even the best traders can lose money, but the key to long-term success lies in sticking to a trading plan that keeps your average losses low (relative to your average profits).
5. Now, you can enter the forex market. Choose your desired trade size, and open a long position by clicking buy on a given currency, or open a short position by clicking sell.

Popular approaches to trading the Canadian dollar as the base currency often involve either the Japanese Yen or the euro (the CAD/JPY or EUR/CAD pair). These currency pairs are popular with investors in Canada (and across the world) due to their correlation to the price of oil. Canada is a major producer of oil and Japan is a major importer, thus the CAD/JPY pair can be affected by the price of oil. Similarly, the price of Canadian oil itself can be influenced by the CAD/JPY rate.

Note: Any attempt to try to capture statistical arbitrage (when trading the CAD/JPY while tracking the price of oil, for example) must involve strict risk management and carefully calibrated trade timing and duration.

The best forex trading app available to forex traders in Canada is CMC Markets’ mobile app. CMC Markets delivers a terrific overall mobile app experience. Featuring a clean, intuitive design, CMC Markets' mobile app delivers powerful charts, multiple research tools, integrated educational content, and much more. Our researchers have rated CMC Markets’ mobile forex trading app highly in our full-length review of CMC Markets.

Check out our walkthrough of CMC Markets' highly rated mobile app:

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CMC Markets is our number one rated forex broker in Canada in 2023. CMC Markets is a highly trusted brand that is publicly traded (LON: CMCX) and regulated by the Investment Industry Regulatory Organization of Canada (IIROC). CMC Markets offers an extensive range of 10,000+ tradeable investment products on its Next Generation web trading platform and mobile app.

No matter where you live, it’s always important to make sure that your forex broker is well-regulated. We’ve put together this list of the most trusted brokers in Canada in 2023 that accept Canadian residents and are are regulated by the Investment Industry Regulatory Organization of Canada (IIROC):

CMC Markets

A highly trusted online forex and CFD broker, CMC Markets goes above and beyond to offer a rich trading experience with competitive pricing and over 12,000 tradeable instruments. CMC Markets is well-regulated, and is currently authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC), Investment Industry Regulatory Organization of Canada (IIROC), Monetary Authority of Singapore (MAS), the Financial Markets Authority (FMA) (New Zealand), and the Financial Conduct Authority (FCA). Read our full-length review of CMC Markets.

Interactive Brokers

Interactive Brokers is a highly trusted multi-asset broker that delivers access to an impressive range of tradeable instruments and global markets. Interactive Brokers is authorised by the following tier-1 regulators: the Investment Industry Regulatory Organization of Canada (IIROC), the Securities Futures Commission (SFC), the Japanese Financial Services Authority (JFSA), the Financial Conduct Authority (FCA), the Monetary Authority of Singapore (MAS), the Central Bank of Ireland (CBI), and the Commodity Futures Trading Commission (CFTC). Read our full-length review of Interactive Brokers.

FOREX.com

FOREX.com is a trusted forex broker that shines thanks to its extensive product offering and its excellent platform options and trading tools. FOREX.com is licensed by the following tier-1 regulators: the Investment Industry Regulatory Organization of Canada (IIROC), the Japanese Financial Services Authority (JFSA), the Financial Conduct Authority (FCA), and the Commodity Futures Trading Commission (CFTC). Read our full-length review of FOREX.com.

AvaTrade

AvaTrade is a trusted forex broker that stands out for its rich selection of trading platform options and for its educational content for beginners. AvaTrade is licensed by the following tier-1 regulators: the Australian Securities & Investment Commission (ASIC), the Investment Industry Regulatory Organization of Canada (IIROC), the Central Bank of Ireland (CBI) , and the Japanese Financial Services Authority (JFSA). Read our full-length review of AvaTrade.

Our research team evaluates and monitors dozens of the top regulators in the forex industry. Learn more about forex regulators on our Trust Score page.

Forex Risk Disclaimer

There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Read more on forex trading risks.