Broker types and revenues: fixed vs variable spreads vs commission.
May 10, · Hi, I am searching for a good ECN Broker. I live in BC, Canada and that is why I am searching for a broker who allows you to open an account from here. Top Forex Brokers in Canada for Forex Trading. There is more than one reason why online forex trading is so popular in the last years. Firstly, trading forex is a form of investment, unlike many ways of earning money online, which have more to do with being lucky, than with being skilled and able to predict the future events.
Meanwhile, this country is very precise as to the personal data safety. All of these lead to the conclusion that Forex brokers Canada are actually the top regulated websites. See which agencies are in charge for this:. The main responsibilities this agency has are to collect and analyze facts and problems as the Canadian market, as well as to prevent money laundering, to provide and deprive the Canadian Forex brokers with licenses and etc.
While it is working, reacting to the different requirements and signals, the Financial Transactions and Reports Analysis Centre of Canada is allowed to react as to all the suspicious transactions, suspected terrorist property, large cash transactions, electronic funds transfers and etc. Ontario Securities Commission — known by the abbreviation OSC — is not a government, but an independent Forex regulator agency, which covers Ontario legislation territory.
The Ontario Securities Commission administers and enforces securities law in the province of Ontario. The mandate of the OSC is to provide protection to investors from unfair, improper and fraudulent practices, as well as to foster fair and efficient capital markets and confidence in capital markets.
Currently, this commission has 10 commissioners, who are in charge to protect the personal data, the finances and the brokers from different cases of scams or frauds. This controlling agency is entirely self-funded, which makes it very popular among the traders, who prefer to enforce their signals to more independent regulation agencies.
Do not hesitate to test a Canada Forex broker, guys! They are safe and quite profitable — especially if you already have a good established strategy for amazing outcomes! On the other side, the broker delivers clients' orders to Liquidity Providers for execution. The ECN automatically matches and executes the orders requested, which are filled at the best available prices.
One of the extra benefits of ECNs, over and above the existing legacy online trading venues, is that the networks can be accessed and are often more efficient during "after hours" trading, which is a particularly relevant benefit for FX transactions.
ECNs are also highly efficient for traders operating EAs expert advisors for automated trading, as the speed of execution is accelerated. Certain ECNs are configured to serve institutional investors, others are designed to serve retail investors, others are compiled to cross over between both sectors, ensuring that retail traders can experience similar levels of quotes and spreads to that of institutions.
An ECN broker benefits from commission fees per transaction. The higher trading volume the broker's clients generate, the higher the broker's profitability.
That unique trading model ensures ECN brokers never trade against their clients and that ECN spreads are much tighter than those quoted by standard brokers. ECN brokers also charge clients a fixed, transparent commission on every transaction. Trading with FXCC as part of the efficiency delivered by an ECN, results in lower fees, whilst there is the added benefit of additional trading time availability.
ECN trading activity is anonymous, this allows traders to take advantage of neutral pricing, ensuring that real market conditions are reflected at all times. Of course with all the different factors to consider, it is easy for a person to overlook customer support. Nevertheless, customer support is as important as all the other factors which a trader must not overlook. Regardless of how experienced a trader you may be, there will always be an occasion that you will need help from customer support.
You need to be sure that whenever you need assistance, help is always nearby, as there is nothing more frustrating than not being able to reach customer support when you are in difficulty. Hence check if the customer support is available 24 hours a day or only during office hours and how efficient they are. In addition, check what methods are available for communicating with the support staff. The best forex brokers are those which provide their traders with different methods of contacting the support team hence ensuring that you can communicate with the broker with minimum hassles.
In addition to the normal trading services offered by forex brokers, some brokers go further by providing their clients with additional value added services.
These services are often offered as a further incentive for traders to sign up with the broker offering them. Furthermore these value added services also serve to help the broker differentiate their products and services from other brokers in the industry.
Examples of these value added services include VPN service, one to one training, pattern charting, social trading and signal trading services. In order to help our readers make an informed decision, we have reviewed some of the key brokers that offer trading to the area and are able to meet the trading needs of Canadian forex traders and recommend our readers to check them out.
These forex brokers are all strictly evaluated on the same criteria that we have mentioned above in this guide. Best Forex Brokers in Canada This page may not include all available products, all companies or all services. How to Choose a Forex Broker as a Canadian Trader Despite being a major developed economy, Canada is one of a handful of countries around the world that does not have a specific national regulatory agency monitoring the financial services industries.
Here you should look for: Download platform — which usually has the most functionality Web Trader — which can be accessed from any computer with internet connection using a login. Mobile trader- for trading on the go Regardless of how many types of trading platforms are available, the most important thing is to see if the platform suits your trading needs and style. Check and see if the trading platform is also able to provide the following features such as: Generic Platforms More and more brokers are building their own high spec platforms to match the needs of their clients.
Leverage As forex brokers in Canada are subjected to different regulatory requirements from the US, the leverage ratio which forex brokers in Canada are able to offer to their traders are significantly higher than what forex traders in the US are receiving from their brokers.
A micro or mini trading account Micro or Mini trading accounts typically have the lowest minimum deposit requirements and are geared towards beginner traders.
A standard trading account For traders who are more experienced, they usually go for the standard trading account which allows them to access more trading features as well as assets to be traded. Islamic Account Finally if you are a Muslim forex trader, you might want to consider trading with a swap free trading account as there is no interest or commission applicable on trades making this type of trading account compliant with Shariah law. Customer Service Of course with all the different factors to consider, it is easy for a person to overlook customer support.
Usually you will be able to contact support staff by: Phone Email Live Chat Address Fax Additional Services In addition to the normal trading services offered by forex brokers, some brokers go further by providing their clients with additional value added services.
Account Size Broker Rating Min. Last but not least, exotic pairs are pairs that include some of the less traded currencies like the Turkish lira or the South African Rand.
Canadian laws as to financial trading, as well as gambling in general, might limit your choice. While it is working, reacting to the different requirements and signals, the Financial Transactions and Reports Analysis Centre of Canada is allowed to react as to all the suspicious transactions, suspected terrorist property, large cash transactions, electronic funds transfers and etc.