Forex is currency trading that consists of buying one currency while simultaneously selling another. Traders try to make a profit by speculating on the value that currencies are likely to have in the future. Forex trading is very complicated, high risk, and generally not for the average investor. What Makes a Forex Broker the Best for Beginners? If you are a beginner, be careful with currency trading, as forex products are complex and risky, so they are not suitable for everyone.
You can easily lose all the money invested. If you don't know how forex trading works, take a look at our forex education articles. If you feel a little more comfortable with forex trading, we suggest you also check out our general list of the best forex brokers. Recommended for forex and CFD traders looking for an advanced trading platform with lots of research tools.
To get a clear idea of forex fees, we calculate a forex referral commission for major currency pairs. This general benchmark includes commissions, spreads, and funding costs for all brokers. Recommended for forex traders looking for low commissions and excellent research tools Forex brokers can charge commissions, spreads and funding fees. When you trade forex with leverage and hold your position overnight, you will be charged a commission.
Funding costs change daily and can accrue if you hold your positions for a longer period of time. Your forex platform is where you'll spend most of your trading hours, so you'll want to have the best tools available. Therefore, it is recommended that if you are a Canadian citizen, stick to Canadian forex brokers to ensure that you have the necessary protection when trading the foreign exchange market. Like major discount brokers, forex brokers have mobile apps for convenient trading on the go and tools to help you with market research.
Now, before we discuss economic turbulence and how it can affect the foreign exchange market, let's quickly take a look at the following root topic. Many wonder if forex trading is legal in Alberta, due to its unique circumstances. Forex is traded on foreign exchange markets, which exist as over-the-counter (OTC) electronic markets around the world. For beginners learning to trade Forex in Canada, there are a variety of online resources and schools of thought available.
Canada offers Forex traders a number of benefits, one in particular that will make you seriously consider a Canadian Forex Broker. In the United States, the examination of existing Forex market operators by the United States Commodity Futures Trading Commission (CFTC) indicated that many brokers and traders lacked strong guarantees to protect consumers, while others were clear frauds. MetaTrader 4 is Canada's most popular online forex trading platform, offering a wide range of tools while being easy to use and reliable. While forex trading is legal in Alerta, one must qualify as an “accredited investor” whether the broker is regulated by the IIROC or not.
Compare Canada's authorized forex and CFD brokers side by side using the forex broker comparison tool or summary table below. As there are several regulatory agencies in Canada, and there is no particular requirement for forex brokers to establish themselves in Canada, traders do not have a large selection of forex brokers in Canada. Even though brokers outside Canada are not required to comply with Canadian regulations, the Canadian government really prioritizes educating and updating traders on the risks posed by the Canadian government in Forex trading. Recommended for forex and CFD traders looking for an advanced trading platform with plenty of research tools.