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Top Forex trading taxes Canada facts to be aware of

Forex trading is attractive for traders worldwide because of the high chances of making good profits. However, most people ignore important things like fees and taxes when starting their Forex trading journey. If you are from Canada, you must know all about the Forex trading Taxes Canada to enjoy the clearest Forex trading experience. Here we will be discussing all you need to know about taxes Canada that forex traders have to pay.

Top Canadian Forex Brokers That offers Advice on Taxes

FXCC Canada
CAD 150 Deposit
100% Bonus
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BlackBull Markets Canada
CAD 200 Deposit
0% Bonus
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Easy Markets Canada
CAD 150 Deposit
50% Bonus
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Avatrade Canada
CAD 150 Deposit
$40 Bonus
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FXChoice Canada
CAD 150 Deposit
0% Bonus
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What is the online Forex taxation process in Canada?

Earning through Forex trading gets different rules and implications across the globe. In some countries, things are a little complex, while in some, things are pretty clear. Regarding Forex trading Taxes Canada, things are pretty clear because of how CRA has classified things. The taxes here are different for investors and business traders.

Things differentiate here according to the routine of trading, and most Forex traders fall under the category of business trading. The best part about Forex trading taxes Canada is that 100% of profit and loss are eligible for taxing and tax deduction, which relieves the broker. Keep in mind that the tax you pay on your earnings from Forex trading is different from any other expenses, including:

  • Platform fee
  • Deposit and withdrawal fee
  • Purchasing any educational material
  • Purchasing equipment for trading
  • Internet fee

The good part is that you can make claims for all of these under the business category when you are paying taxes.

Is it legal to earn with Forex trading in Canada?

Yes, in Canada, it is legal to earn with Forex trading because the industry is under the regulation of IIROC(Investment Industry Regulatory Organization of Canada). It provides regulation on the national level, so selecting any broker that is compliant with IIROC will be legal and safe.

Remember that some brokers may not come in compliance with IIROC, and such cases, you may be risking your money. Additionally, it is important to pay your Forex trading taxes Canada according to rules to keep it legal for you.

Do you need to pay any taxes on Forex trading earnings in Canada?

Yes, everyone must pay taxes on the income made from Forex trading. However, that tax is not the same for everyone. It depends on your trading type and strategy, along with the mode of investment that you select. Below are the details of 2 types of taxes that you need to pay:

1. Capital Gains Tax

It is the tax you must pay on your Forex trading earnings if you are trading as an investor. It is for those whose main source of business is not Forex trading. However, here you only have to pay 50% pay taxes at your marginal tax rate.

2. Full marginal rate tax

It is the second type of tax for Forex trading earnings in Canada. It is for those traders taking Forex trading as their business and making a living as day traders. In this case, you must report all the Forex trading earnings as your business income. So, instead of 50% taxed at the marginal rate, you have to pay tax at the full marginal rate.

How Much can someone earn while Forex trading in Canada despite all the taxes?

You cannot say anything about how much you will be earning from Forex trading. It is because it depends on a lot of factors, including your trading strategies, market trends and rates. However, you can calculate your net earnings by calculating the taxes you will be paying.

With higher taxes, you may be earning less, but it is only true if your Forex investor’s income is less than Forex income. Additionally, it depends on how much you are investing. So, with higher investment, the chances of winning big also increase.

How to begin with Forex Trading in Canada amid taxes?

As a beginner in Forex trading, it is necessary to be careful about Forex trading taxes Canada, along with many other things. So, if you keep making the right decisions from the very first day, you will be on the safe side. Here we will be discussing how you can begin your Forex trading journey in Canada by considering all the important things about Forex trading taxes Canada.

  1. The first thing to do is find the right Forex broker. The broker with transparency in its fee structure and all other charges is the best. However, you must consider other factors like user experience, feature set, etc.
  2. Begin with the demo account and start learning about Forex trading
  3. Learn different Forex trading strategies and try them on the demo account. Assess your earnings and see how much you will be earning after paying tax cuts.
  4. Decide the platform, trading strategy, and investment option.

With these 4 steps, you will be ready to hit the Forex market with the knowledge to pay your Forex trading taxes Canada.

The best Forex Trading Platforms in Canada

There are a lot of Forex trading platforms operational in Canada. However, only a few of them are good for you if you want to keep track of the taxes that you are paying. So, here are some of the best trading platforms for Forex trading in Canada with the best Forex trading taxes Canada experiences.

  1. AvaTrade is the best choice for beginners in the Forex trading field.
  2. CMC Markets: CMC Markets is the overall best with the latest technology platform and a good trading experience
  3. com: brings the best all-round trading experience in Canada
  4. Interactive Brokers: Best for professional and experienced brokers in Canada
  5. Saxo Bank: Good for those looking to start huge with Forex trading.

The best forex Trading Platforms in Canada – Comparison

Broker IIROC regulation Minimum Deposit Average Spread
AvaTrade Yes $100 0.91
CMC Markets Yes $0 0.73 Yes $100 1.1
Interactive Brokers Yes $0 0.6
Saxo Bank No $2000 0.8



Calculating the Forex trading taxes Canada is important from the first day of your Forex trading journey. This way, you can learn the best trading strategies and techniques to save on taxes. Similarly, selecting the right trading platform to maintain a good Forex trading experience will be easier.