Forex trading in Canada has been happening for quite a long time and it is said that Canada has always been overshadowed by its much bigger and illustrious neighbor which is the US. For ling, everyone always talks about the US in whatever field the discussion is about, and even in trading, everyone talks about the US and the impact of the USD on forex trading but not many talks about Canadian forex trading.
The forex traders over there believe that it is high time that they come out of the shadows of the US and build a name of their own and they do deserve it, in all sense of the term as what happens in Canada is actually as good as in the USA as far as trading is concerned. In fact, many forex traders feel that the regulations and control in Canada are much more relaxed than in the US and so many traders from the USA and other parts of the world have been making a beeline to Canada in a bid to continue their trading career and build a hedge fund over there. Canada has also been quite welcoming of traders with their relaxed rules and people also love Canada for the variety of job opportunities that it offers. The big turn-off as far as living in Canada is concerned is the fact that the country has a biting cold for a large part of the year. If you can tackle and tolerate that and you want to build a trading career, then Canada might be a good choice.
How to Get Started with Forex Trading in Canada?
Once you have decided to trade forex in Canada, it is the same as trading in the rest of the world. As long as you choose the best brokers in the country, your funds are safe. That is what should be the priority of any trader. The funds that he deposits to the broker should be safe. Not only from the broker but from the trader himself as well. Many beginner traders have the habit of rushing into trading and then finding that they are not yet ready for trading They do not have any specific trading strategy nor do they have any sort of trading plan and they find that their entries and exits are pretty much opposite to what is happening in the market and so they are always underwater.
They also do not have any kind of stop-loss which means that the losses continue to float for a long time which is emotionally draining for any type of trader. This also makes sure that they are not thinking in the right manner and as a result of that, they are unable to make the right decision and quit the trade when they have to so that they can cut off the losses. Likewise, the fact that does not have any stop losses also makes sure that they are unable to enter into any trade at any point in time due to the floating losses. So This is why experienced traders always say that beginner trader should take their time before entering the market. They need to make sure that they are fully ready, they have taken trades at the demo account they have created for at least six months on the demo account and they have a specific plan and strategy as well. All these should be in place and they can trade for six months without any losing months then they are ready for the live account and only then they should be funding their account.
Once you are ready for forex trading on a OneDrive account the next challenge fails not only in Canada but anywhere in the world used to find the right trading platform. This is to ensure that your friends that you are funds are safe there are many scam brokers out there who would want to cheat you off your funds. So make sure that you spend a lot of time analyzing all the available brokers, read their reviews online, ask your fellow traders in the same region and then decide on which trading platform you are going to go for. When you make this choice, make sure that they have the trading software that you are comfortable with trading and also make sure that they have the currency pairs that you are used to trading. You may be very good at trading gold but if the trading platform does not have that instrument, then you are going to be in trouble and you would be forced to change a winning strategy just because the required instrument is not there. So make sure that you take your time in choosing this.
The next challenge is how much to fund your real account with. If you are a beginner trader, even though you may have spent several months in trading the demo account and might feel very confident, make sure that you fund your account with a small amount that you are comfortable with. You have to spend the first few trades and days trying out the platform and your strategy to make sure that everything is working fine and according to your plan. Once you have made sure of that, then your confidence will grow even further which may be the right time to make an additional deposit of funds into the account. Please ensure that you do not spend more money on trading than what you can afford. You should not be putting your life savings into trading. It is always better to split your savings among several avenues of investment where trading should also be one such avenue.e So in such a situation, make sure that you don’t put everything into a single basket and split your risk across several avenues.
Running several rounds of testing on a live account with several trades and make sure that you are comfortable with the platform. Then complete one round of withdrawal to ensure that everything is smooth and you are confident of the timelines of each. The last thing that you want to see is that you expect your withdrawal in a specific timeline and it doesn’t come within that and then it becomes a very big issue for everyone involved. So you must try out one full cycle of deposit, trading, and withdrawal so that you are aware of what to expect.
Do All the Canadian Provinces Comply with the Same Forex Operating Laws?
Once you have figured out how to trade forex in Canada, then you are all set to begin your trading journey. The taxes and the legality surrounding forex trading depends on which city you are in. It may be too much to ask the forex traders to move to a specific city just because it is lenient for forex trading as there are many more important considerations for a person to, choose a specific city to settle in. But depending on which city you are in Canada, the rules and regulations and the taxes that you are charged for forex trading may slightly vary.
But in general, is forex trading legal in Canada? The good news is, that it is. As we had said at the start of the article, the forex laws surrounding trading are much more flexible and lenient than in the US which means that many of the FX traders who hope to join a hedge fund or want to make a big career out of forex trading for themselves, choose Canada as their destination. Of course, as long as they can tolerate the biting cold. The laws are very welcome for forex traders and through the legality may vary slightly from city to city, in general, the forex traders are very happy to be trading with Canada with low taxes and very good and easy regulation surrounding the trading. The Canadian Securities Administrators generally view trading as very favorable and FX trading also gets the same status and welcome in the country as a whole.
What are the Payment Options that Canadian Forex Brokers Offer to Customers?
There are different types of payment options that are available for traders in Canada. The brokers realize that the deposit and withdrawal are the keys for any customer and so they always ensure that they leave no stone unturned in terms of making sure that these payments methods are as flexible as possible so that the users do not feel the strain of having to go through a big process to fund or withdraw from their accounts. If this process is smooth, it is known that the traders would trust that broker much more and so the brokers ensure that this process is not easily broken and is as reliable as possible.
Right from offering cash payments methods to direct transfer to bank account, the forex brokers have all kinds of payment options available. Of late, digital payments and crypto payments have also gained prominence and so many forex brokers have activated as many of these channels as possible so that the traders have a wide variety of payment options to choose from. But from the trader’s point of view, they must understand what kind of charges are being charged by the broker so that they are sure of what they are getting into. Some FX brokers have a habit of charging a lot of fees especially for withdrawals, while deposits are allowed free of charge, and this eats into the profits a great deal, especially if the accounts are small. So the trader must understand all these fees as well as the timelines for deposits and withdrawals so that he can plan accordingly.
Generally, digital payment methods are the most convenient and quick methods for both deposits and withdrawals. Many of the brokers have systems such that the deposits made via digital payment methods get immediately updated into the trading account and this is very useful especially when you want to enter into some trade quickly as you have seen some very good trading opportunities or when your account is about to margin call and you want to top it up to avoid it from get margin called.
Is it Worth Trading Forex in Canada?
This depends on the standard of living that you already have and the one that you are really aiming for. Canada is generally a pretty expensive place to live in and so you must understand that when you start off trading, it is unlikely that you will make enough to get a good living out of it. Trading and making it self-sufficient is something that takes a long time and it is a slow and steady process. The trader should be ready for the grind as it is likely that it could take more than a year of successful and profitable trading for a trader to start making enough so that he can have a comfortable living. Till that time, he has to learn to balance his life so that he can make a bulk of his earnings from some other source while he continues to patiently build his account and his trading skills as well. For many, that could take several years.
Since you start with a small account that may or may not be profitable in the first few months, do not worry about making money for a living from trading during this period. However much you try you would not be able to earn enough and even if you do, it basically means that you are taking a lot of risk in your trading which in turn means that your account is going to blow up anytime. So, it is always good practice to be clear of what you can achieve and what your limitations are, as far as your account size and your trading skills are concerned and you would need to set your expectations correctly so that you would be able to achieve your goals without too much of pressure on yourself and on everyone who is around you. Having a clear and peaceful mind is important for any trader and you can achieve that only if you set your expectations correctly without trying to fool yourself.
Choosing the Best Forex Brokers in Canada
One of the most frequently asked questions is how to choose the best forex trading platform in Canada. Like in most developed countries, there are a lot of forex brokers in Canada as well and it is indeed a difficult job to choose the right one and the best platform as well. Most of them offer similar trading platforms and the instruments that are available for trading are also quite similar.
Last few years, the trading platforms have been feeling the pinch and hence have been trying to attract new users to the platform using new features like social trad8ing and also by offering crypto instruments for trading as they realize that these instruments are high in demand at this point of time due to their volatility which is likely to give a lot of returns for the traders with a lot of risks as well, of course. They have also been expanding on the trading software and giving offers like free deposits and other such free items just to make sure that they remain in the news and can sign up as many users as possible. There are very few brokers out there who genuinely wish that their traders make money and give out features and upgrades that make the traders better at their skills.
Some of the brokers like IGMarkets offer a wide-ranging of educational items as well which are among the best trading platforms in Canada and these can be used by the trader even if he doesn’t want to trade at that broker. Learning is very important for any trader, new or old and so wherever and whenever they get such an opportunity, it is important for them to make full use of that and expand on their knowledge so that they can continue to grow on the path to becoming a very good trader. The trader has to be very careful in choosing the right broker so that they can trade in peace without having to worry about whether they are comfortable in trading on that platform or whether the broker is trading against them and things like that. This peace of mind is very important for any trader and so the trader should try his trades on a demo account at a few brokers at least and also read through reviews given by their friends and people that they know before zeroing in on a specific platform for trading.
Forex trading in Canada is indeed a good thing to do as it is much easier and the government and the regulators are very supportive as compared to many other countries. The regulations and laws surrounding this are so very easy and lenient that we have been seeing many people, who want to pursue a career in forex trading, coming to Canada to settle down just for this purpose. The timings of trading in Canada are also very appropriate as the markets open just before the markets open in the USA which ensures that there is a lot of liquidity and volatility when the traders in Canada are available for trading right in the morning.
Is forex trading illegal in Canada? Not a chance! There are basically ideal conditions for forex trading that any forex trader would wish for. Like in any other part of the world, the traders have to make sure that they choose the right broker for trading as there are many scam brokers in this part of the world as in others as well. Once they can successfully avoid such types of brokers and can find the right ones, then it is all up to the trader to make use of the platform to launch his successful trading career. For this, he would need a lot of patience and a working and profitable trading strategy. The trader can try this out in a demo account for a few months and once he feels that his trading plan is working, then he can graduate into a small real account and see whether he can replicate this success in his real account as well.
All these are bound to take quite a bit of time and for certain traders, this might come in within a few months while other traders may find that they cannot be profitable even after several years of trying. Of course, they have a choice on whether to continue or to leave and move on with their lives but the traders must be clear on what they are getting into and are ready for the long haul rather than trying to find some shortcut for success when there is none and then get fooled by people and scammers who just want their funds. If they are clear, the journey to becoming a successful trader becomes much easier.