Best forex brokers for Canada in 2022

To have a clear picture of forex fees, we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

Based on our assessments, and hundreds of data points we analyzed, here is our scorecard for the best online broker for trading forex:

Here are a few things that are good to know before diving into forex trading and the financial markets:

What makes a top forex broker?

• First of all, fair forex fees.
• A good selection of currency pairs.
• A great forex trading platform with advanced charting.
• Educational tools to guide you through the basics of trading.

If you're a beginner, be careful with forex trading as forex products are complex and risky, therefore not suitable for everyone. You can easily lose all your invested money. If you don't know how forex trading works, take a look at our forex education articles.

If you feel a bit more comfortable with forex trading, we suggest you also check out our overall list of the best forex brokers.

Is forex trading legal in Canada?

We only recommend regulated, safe, reliable brokers, so each of these top picks is a good choice to start trading. But if you are worried about scams, here are a few useful tips on what to look out for:

• No information about the broker’s details on the website
• Questionable or difficult to understand parts in the Terms and Conditions
• The broker has no license or it is difficult to find out of it has one
• There are no reviews or many negative reviews
• Few methods of contacting customer support, slow response
• The broker’s representatives are obtrusive, frequently write and call, asking you to deposit money to your account

Forex trading is legal in Canada. The forex market in the country is regulated by the IIROC. (Investment Industry Regulatory Organization of Canada). The IIROC is the national regulator, but each region of Canada has its own provincial regulator making regulation in Canada quite complex, as there is no one single authority that oversees registration or regulation.

The IIROC is a self-regulatory organization, established in 2008, and it creates, monitors and enforces financial rules over the Canadian forex market. To check if a broker is a member of the IIROC, you should check the broker’s registered name which you can usually find at the bottom of their home page. You should be able to search if the broker’s name appears on IIROC’s website. If it is registered with the IIROC, it will appear in the Member section.

Forex brokers in Canada have a big advantage, as they fall under the Canadian Protection Fund (CIPF), which ensures that trades will be covered for up to USD 1 million in the case of insolvency or fraud.

Keep in mind that in some cases a broker might not be licences by the IIROC, but only by a specific region.

If you want to know more, here is our detailed article on forex scams.

If you are a novice trader and want to learn about trading strategies, we put together some trading ideas for you, check them out. A good trading strategy can be key to online trading but also make sure you practice with a demo account at an online forex broker.

If you don't know how currency trading works, take a look at our forex education articles.

Now let’s see our top picks in detail, starting with the winner, Fusion Markets.

The essence: Fusion Markets has low fees and gives access to 89 currency pairs. It is recommended for forex traders looking for low fees and a chance to use the MetaTrader 4 platform.

• No minimum deposit
• The EURUSD benchmark fee is $5.2
• No account fee
• No inactivity fee
• No withdrawal fee

Fusion Markets is an Australian discount forex broker founded in 2010. It is regulated by the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC) and is considered safe.

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74-89% of retail CFD accounts lose money

The essence: CMC Markets has low fees and offers access to 338 currency pairs. It is recommended for forex and CFD traders looking for an advanced trading platform with many research tools.

• No minimum deposit
• The EURUSD benchmark fee is $8.8
• No account fee
• There is inactivity fee
• No withdrawal fee

CMC Markets is a global CFD and forex broker, founded in 1989. It is regulated by several authorities globally, including the top-tier UK Financial Conduct Authority (FCA). The company is also listed on the London Stock Exchange, and is considered safe.

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76% of retail CFD accounts lose money

The essence: Interactive Brokers has average fees and gives access to 105 currency pairs. It is recommended for traders looking for broad market access and a professional trading environment.

• No minimum deposit
• The EURUSD benchmark fee is $10.4
• No account fee
• No inactivity fee
• No withdrawal fee

Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1977. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC). Given that the broker has licenses from multiple top-tier regulators, Interactive Brokers is considered safe because it has a long track record and publicly disclosed financials while being listed on a stock exchange.

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The essence: Questrade has low fees, gives access to 116 currency pairs, and is recommended for traders and investors focusing on the Canadian and US markets.

• $1,000 minimum deposit
• The EURUSD benchmark fee is $7.4
• No account fee
• No inactivity fee
• No withdrawal fee

Questrade, founded in 1999, is one of the most popular brokerage firms in Canada. It is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and is a member of the Canadian Investor Protection Fund (CIPF), and is considered safe because it has a long track record and is regulated by a top-tier regulator.

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The essence: Axi has has low forex fees, and offers 76 currency pairs. It is recommended for forex traders familiar with the MetaTrader 4 platform.

• No minimum deposit
• The EURUSD benchmark fee is $8.3
• No account fee
• There is inactivity fee
• No withdrawal fee

Axi (previously known as AxiTrader) is an Australian forex broker founded in 2007. Axi is regulated by multiple financial authorities worldwide, such as the UK's Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC) and the Dubai Financial Services Authority (DFSA), and is considered safe.

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73.9% of retail CFD accounts lose money

To better understand what you are paying for when it comes to forex trading, here is a run-down on what forex brokers can charge, including commissions, spreads and financing fees.

When it comes to commissions, there are two different fee structures forex brokers normally use:

1. All trading fees are included in the spread except the financing rate. Basically, think of it as the broker giving you a wider spread than it gets from the forex market.
2. You get the market spread, but you pay a commission based on the traded amount. This model is usually used by ECN brokers.

The second version is more transparent, but this doesn't always mean it's more expensive.

When you trade forex on leverage and hold your position overnight, a fee will be charged. This is called financing cost. Financing costs change daily, and can add up if you hold your positions for a longer period.

Still unsure? Use our broker finder tool to pick the best broker for you.

Do forex traders pay tax in Canada?

Yes, you need to pay taxes on the income or returns you make with trading currencies. You will be eligible for capital gains tax if forex trading is not your profession. This means that you’ll pay taxes at 50% of your marginal rate. However, you need to pay income tax if you make your living from forex trading, such as a day trader, or it is your core business. You will pay taxes on these earnings at your full marginal rate.

How can I buy forex in Canada?

Forex is legal in Canada, but keep in mind that each province has different regulations. Before you start trading, get familiar with the basic forex jargon and the most often used forex trading strategies. Choose a broker from our top picks, and if it is available, start practicing with a demo account, so you get familiar with the platform. Once you feel comfortable enough, start trading live.

Can you trade forex in Ontario?

Yes, you can trade forex in Ontario, as forex trading is legal in Canada. The IIROC (Investment Industry Regulatory Organization of Canada) oversees the forex industry on a national level. Keep in mind that local regulators have different rules and also exert control. Locally, the Ontario Securities Commission oversees the capital markets, and forex trading in the province.

Save yourself hours of research and check out our broker recommendation tool that will give you a tailor-made list of the best forex brokers available to you.