Forex trading is legal in Canada and regulated by provincial securities commissions and the Investment Industry Regulatory Organization of Canada (IIROC). In addition, all forex brokers must adhere to strict anti-money laundering and know-your-customer standards. More info

A forex broker is a middleman that connects traders to the financial market and provides them with the opportunity to speculate on the price movements of currency pairs. In order to do so, a broker receives price quotes from liquidity providers and buys or sells currencies on behalf of its clients. It then profits from the spread, which is the difference between the bid and ask prices for a currency pair.

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The fees charged by a forex broker are generally categorized as trading and non-trading fees. Trading fees include the spread, the commission to open and close a trade, and any overnight fees that are charged to a forex account. Non-trading fees are typically based on the amount of activity in a forex account and can include technology, maintenance, or administrative costs.

Traders can verify that a forex canada broker is regulated by ensuring the brokerage firm is an investment dealer and is registered with IIROC. Additionally, a regulated forex canada broker is likely to be a member of the Canadian Investor Protection Fund (CIPF), which protects investors in the event of a brokerage insolvency up to $1 million. CIPF membership information is often highlighted on a forex broker’s website.