Canada is a very big country and there are so many forex traders here. Unfortunately, only very few of the forex traders in Canada are making consistent profit. This is why we come up with this system to get them informed. We understand that adequate information is the secret to regular profit in forex trading.
Our platform provides adequate information to help forex traders in Canada. Both beginners and experienced traders can trust the information we provide towards making better trading decisions. We also provide the information in a readable manner to enable everyone to make sense of it. So, you can trust us to lead you by the hands so that you can become a more productive forex trader. You can get in touch with us via www.bestforexbrokerscanada.ca.
Best Canada Forex Brokers in 2020
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In the next section of this information, you will learn a lot about forex brokers in Canada and how to choose right among them.
Forex brokers in Canada
A forex broker is a professional that provides a platform for trading Forex. There are so many forex brokers in Canada. They are also highly competitive among themselves with each of them claiming to offer the best service to the customers.
You need to choose carefully so that you will not end up regretting it. The services the forex brokers offer differ one to another. Good research is essential before you pitch your tent with any of them. You need to research their reliability and find out how trustworthy they are.
Choosing the Best Canadian Forex Broker
If you are a newbie in forex trading, it can be challenging to choose a forex broker. There are so many of them and they all claim to be the best. So, a newbie may have a hard time selecting the right one among them when looking for the best forex brokers Canada. This is because not all of them that claim to be good is good. This is why we have put this information together to help you make the right choice among the forex brokers in Canada.
In the next section of this write-up, we will show you a couple of things you must pay attention to when choosing a forex broker in Canada.
It is very important to be wary of security risk when choosing a forex broker. You should not partner with that forex broker if it does not offer a high level of security.
Do not forget that you will be giving your hard-earned money to the broker. So, the broker needs to be secure before you give the broker your money. It is not so difficult to check the credibility and security of a forex broker.
All you need to do is to check with the regulatory agency in the country. When looking for the best forex brokers Canada, find out if the broker of your choice is regulated by the regulatory agency in the country. A regulated forex broker will not participate in fraudulent activities. So, such a broker is highly secure. Regulation helps to curtail the overbearing activities of brokers. It also ensures that the broker offers the trader top quality services.
If your broker is regulated, you can conveniently sleep with both eyes closed. This is because nothing will go wrong with your funds. Even if anything goes wrong with your funds, the regulatory agencies will help you to resolve the issue withstood any hassle.
The regulatory agency in Canada is the Investment Information Regulatory Organization of Canada (IIROC). You should not register with that broker if it is not a member of the IIROC. You will never regret it since this body will help to protect your interest with the broker.
Cost of transaction
One other very important thing to consider when looking for the best forex brokers Canada is the cost of transactions. There is no way you will not have to pay for the transactions on the forex broker. This is because this is the only way by which the forex brokers make money. What you should look for is a forex broker offering affordable transaction costs. You will need to pay a commission or a spread each time you enter a trade in Forex.
You should find out how much that forex broker charges as fees for a commission or spread before you register there. The cheaper it is the better for you. Studies show that many of the forex brokers that charge very low fees may not be able to offer reliability. Be that as it may, you can still find an affordable forex broker that is also reliable if you search very well.
Your choice in this regard also depends on the type of trader you are and the trading system you use. If you are a long term trader, for example, you need a broker that offers tight spread. Tight spread means that you will only pay a small amount of money for spread. The tight spread will help you to make a profit faster and will reduce the risk on your trading account. No matter what you do, make sure that the forex broker also offers good security, aside from the low cost of transactions.
Deposit and withdrawal
One other important factor to consider is the ease of deposit and withdrawal. When looking for the best forex brokers Canada, look for one that makes deposits very easy. If the forex broker is good, it will not make the process of depositing and withdrawing difficult for you. The only reason a broker holds your money is to enable you to trade. So, there should not be any problem when you want to withdraw your money. Many forex brokers will process your deposit immediately. In this case, the money will be available for trading almost instantly. You can also find forex brokers in Canada that will process withdrawal under a few minutes. Bear in mind also that the time taken for deposit or withdrawal can depend on the method you use.
One other very important thing to consider when choosing the right forex broker is the trading platforms available. The trading platforms differ from one broker to another. Trading activities can only take place on forex trading platforms. Traders should find out if the trading platform is user-friendly. Find out if it is very easy to navigate. Find out also if the trading platform is stable. All these factors will make your trading experience a very interesting and satisfying one.
Before you register with that forex broker, find out if it offers great information on its platform. The best forex brokers Canada will offer free news feed on their platforms. They will also offer various charting tools. You will find great technical tools on good forex brokers also. These charting and technical tools will equally be very easy to use. A good forex broker will always give you all the information you need for trading.
The most common of all forex trading platforms is the MetaTrader 4 (MT4) trading platform. You will find it on virtually all the forex brokers operating here in Canada. Another popular one is the MT5 trading platform. Some brokers offer a proprietary trading platform also. This kind of trading platform is specially built by the broker. Proprietary trading platforms have special features that are not common to MT4 or MT5 platforms. The conditions of trading on a proprietary trading platform can also differ from what obtains on MT4 or MT5. The conditions can either favor you or not. You must always bear this in mind. Before you choose the particular trading platform to use, first check the prevailing conditions. Go for one that offers the best trading conditions among them.
One other thing to consider when looking for the best forex brokers Canada is the speed of trade execution. The trace execution must be fast. If not, you will not be able to enter a trade at a desirable price. You should only consider a broker that will process trade fast. Such a broker will enable you to enter a trade at the best price for that order. The execution delay can be due to the broker and it can also be due to network issues. If the broker offers fast execution, you must also make sure that your internet connection is fast. You will not have a problem with forex trading if these factors are in place.
Some other factors that can cause a delay in trade execution are:
- Surprise political events like breaking news
- High impact News release
- High volatility or liquidity
Aside from those, a broker should not have any excuse not to process your trade very fast. Even if the broker does not execute that trade at the desired price, the execution price must be very close to what you desire.
If you are a scalper in Forex, then you need a broker that offers fast trade execution. A scalper needs to enter trade very fast and will not hold a position for more than a few minutes. He needs the trade execution to be instant. If not, he will not be able to make a profit as he should. Change in price by just a few pips can mean a lot to a scalper.
Quality of customer service
When looking for the best forex brokers Canada, also consider the quality of the customer service. You should look for a broker that you can contact very easily when choosing a broker. Problems may arise when using the broker’s platform for forex trading. It should be easy to communicate the problems to the broker as and when due. So, make sure you register with a broker that offers easy communication channels. Before you register with a broker, find out if it offers competent and reliable technical supports. Some forex brokers can even assist you on how to open an account and make a deposit. Some of them even offer a guide on how to navigate their trading platforms.
Find out if you can communicate with the broker via email, phone call, or live chat. You should also find out how long it takes the customer care agents to respond to your messages or calls. So, you should first read reviews about the broker before you register there.
How forex brokers make money
Forex brokers make money in three different ways:
- Bid-ask spread or pip spread
- Transaction costs
- Trading operations
Check the example below:
The bid-price of EUR/USD is 1.20010 and the ask-price is 1.20022. We can get the pip spread by subtracting the two of them. The difference between the two of them is .00012. This means that the pip spread is 1.2 pips. The broker will collect the amount of money represented by 1.2 pips each time you open a trade on EUR/USD. The amount of money that equates to 1.2 pips will depend a great deal on the lot size you are using to trade. The amount increases as the lot size increases.
We already discussed this above, but we will mention it again for the sake of emphasis. Some brokers charge additional fees from trading activities. The fee can come in different forms. It can be in the form of a monthly fee. You may also pay a fee for exotic options. The forex market is highly competitive. As a result of this, many brokers charge low fees so that they can attract more customers. You can now access free trading fees on many brokers. Some other ones charge very little fees that will not put a hole in your trading account.
One other way via which brokers make money is through actual trading. Some brokers also trade forex like their customers to make money. However, this can lead to a problem for the trader. The problem can come up if the broker opens a position that opposes that of their traders. However, the regulatory agency in Canada curtails this activity. This is because it is not in the best interest of the forex trader that registers with that broker.
In conclusion, make sure that you first investigate the reliability of the forex broker before registering there. Also, make sure that the broker is regulated by the IIROC in Canada before you register there. This way, you can trade forex with complete peace of mind.