Best Forex Brokers From Out Of Canada in 2018.
Top Forex Brokers in Canada for Forex Trading. There is more than one reason why online forex trading is so popular in the last years. Firstly, trading forex is a form of investment, unlike many ways of earning money online, which have more to do with being lucky, than with being skilled and able to predict the future events. Top Forex Brokers in Canada Unlike in the US where traders are permitted to deposit money with nationally-licensed brokers only (NFA regulated brokers), Canadian traders are able to trade with nearly any brokerage of their choosing.
Even though in most cases, the location of the firm we are clients of is not that important, here in financial trading, things are completely different. The residence of the broker does affect not the broker, itself only, but only on the customers, who have the possibility to join it.
This location limit is usually drastic and significant, so we have decided to make a statement over it, as well. For this purpose, today, we will strictly talk about the best Canada Forex brokers. Canadian Forex websites are by all means not few, but numerous, so it is our duty to put some light over their specifications, too. It is not a secret to anybody that there is a big chance for many traders to find difficulties to find a decent broker to register and trade in.
This is not very common, but you can find it as a trend for many different trader types. Indeed, brokers are quite many, but depending on your nationality, you might not be able to join some of them. To be more specific, USA and Canadian customers are those traders, who might be out of reach to some specific brokers , including Canada Forex brokers.
The limitations we are now talking about are due to the national laws in the countries. Canadian laws as to financial trading, as well as gambling in general, might limit your choice.
For instance, many traditional platforms — mostly those that are based in European territory — announce it directly on their home page that Canadian citizens are not allowed. So what Canadians can do then? Are they entirely restricted from the Forex market? Canadians traders are allowed to trade, but at particular Forex brokers Canada — e. Still, if you are a trader based in Canada, you are free to join any Canada Forex broker.
The Canadian brokers are specific for their own regulation body, which provides the safety for each trading website, as well as the safety for the customers, themselves.
Canada is famous for its high level of security, when it comes to make any kind of financial transactions in the web in general. Meanwhile, this country is very precise as to the personal data safety. Over the years, Canadian brokers have been unable to replicate that kind of popularity in the retail trading industry.
Nonetheless, if you are indeed looking for Forex brokers options in Canada, Canada does offer some compelling benefits that can attract both institutional as well as retail investors. You might be surprised by the advantages that the country offers to investors, which can in turn lure traders into depositing their trading capital with Forex Brokers Canada. Therefore, Canadian brokers offer more leeway and protection for traders who have a significant sum invested in the Forex markets, which is highly suitable for traders that hold funds that are more than a million dollars with their brokers.
Apart from the investor protection fund, Canadian brokers also do not impose any stringent trading restrictions on investors, unlike some of the other regulators such as the NFA and the CFTC.
Canadian regulators are also committed to the welfare of their investors and offer the freedom to traders to choose any broker in the world. Although there are some advantages of choosing brokers from Canada, traders should also be aware of a few drawbacks of Canadian Forex Brokers. Canada is one of the very few developed nations in the world that allow its citizens to invest their money with overseas FX brokers without a valid Canadian regulatory license. Canadian laws are pretty lenient towards financial firms, as it is not an absolute necessity for companies to be regulated by any formal Canadian authority to be able to entertain investors from Canada.
Such a move is designed to increase the competitive nature of the retail trading market, but it can also have severe shortcomings. For instance, the Canadian regulators will have no control over scam brokers that are located in other parts of the world, which can result in Canadian investors losing a ton of money.
There is also no way by which a Canadian authority can impose sanctions on any other regulated broker, even if Canada has bilateral relations with that nation. Therefore, to prevent such instances of financial fraud and scam practices, it is not uncommon for Canadian Forex traders to prefer FX brokers that are located in Canada.
An authorized Canadian regulator has the job of regulating financial companies that wish to set up their base of operations in Canada.
There are no exceptions to the fact that the concerned agency must regulate all companies operating on the Canadian soil. Canadian financial market is divided into different territories that impose different regulations through multiple regulatory organizations.
These different regulatory agencies have different duties as far as regulating different types of firms are concerned.
The following are the main Canadian regulatory authorities in charge of regulating companies:. Canada has the largest number of regulatory organizations in the world due to the lack of a central regulatory authority. Canada has conducted numerous case studies and has sought recommendations from experts to create a single regulatory authority that will be able to regulate and supervise all financial firms operating in the country.
Nevertheless, at present, Forex brokers in Canada are regulated according to the territory of operations. Existing Canadian laws state that any Forex broker can operate in Canada without a regulatory license.
Of course, there are tax benefits and the renewed sense of trust from Canadian traders by getting regulated by a Canadian authority; however, the cost involved in setting up a company from scratch along with a confused Canadian regulatory structure can act as the primary deterrent for brokers. The ultimate aim for any business would be to achieve consistent profits, which can only be gained through a stable marketplace.
The Canadian regulatory structure is still in its primitive phase, and there is a lot of uncertainty surrounding the future course of action regarding the regulation of financial entities. It is also common among Canadian traders to choose international FX brokers according to their trading requirements. Several brokers have different features and functionalities that are unique to a particular group of traders.
Therefore, it is close to impossible for companies to offer various services to a small group of traders, as it is more viable from a business point of view to provide services to traders from an existing platform. Some international regulatory agencies do have an excellent reputation, which ensures that their member firms adhere to all statutory guidelines of FX trading, irrespective of the geographic location of an investor. Therefore, overseas brokers only need to set up a Canadian presence either through a website or through seasonal presentations and conferences to attract retail traders from that region.
Was the information useful? Getting Started with Forex Trading in Canada While trading conditions are certainly a vital part of the Forex trading experience, we believe that the most important parts of the trading experience are related to the reliability, professionalism and security of each Canadian Forex broker.
Currency pairs are generally divided into major, minor and exotic.