Best Canadian CFD Broker 2022

Trade CFDs in Canada

CFD trading in Canada is entirely legal and exceptionally well-regulated. There are plenty of great broker options available to you and in this guide, we’re going to tell you everything you need to know about this popular investment opportunity.

We’ll start by explaining the licensing and regulation that applies to CFD trading in Canada. Then we’ll suggest a few steps you might want to take before you risk investing any money. We’ll also cover how we test the brokers we are reviewing and give you some tips on how to find the ideal CFD broker for you.

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Top Brands
82/100

Compare the best CFD brokers in Canada

Rating
82/100
Minimum Deposit
$100.00
Deposit Protection
Trading Costs
from 0.50%
Mini Contracts
no

Who should make use of this CFD comparison? – All readers welcome here!

We would like to think that our guide to finding the best CFD broker in Canada will be useful for many different types of readers, irrespective of their level of CFD trading knowledge. Those who are complete beginners will learn plenty and even seasoned CFD traders are sure to find a few useful pointers along the way.

There is also value in reading our guide for traders in other countries too. For example, even if you are already engaged with CFD trading in New Zealand or actively seeking the best CFD broker in Malaysia, much of the advice we will give you for finding your ideal CFD broker is just as relevant, regardless of your location in the world.

Licensing and the regulatory guidelines for CFD trading in Canada are put in place by the Investment Industry Regulatory Organisation of Canada (IIROC). Most legitimate brokers display their licensing credentials on their own websites, but you can also find out more from the IIROC website by using the link to the ‘Dealers we regulate’ section, where all licensed CFD brokers are listed.

In addition, IIROC is overseen by The Financial Institutions Supervisory Committee (FISC), which ensures that all licensed CFD brokers implement suitable recompense for traders in the event that the brokerage should fail. This ensures that traders’ funds are protected up to $1 million.

Lastly, at provincial level, the Ontario Securities Commission, the British Columbia Securities Commission and the Autorité des Marchés Financiers (for Quebec), set further regulations for CFD trading in their respective provinces. If you intend to trade CFDs in Canada, it is your responsibility to ensure compliance with the regulations appropriate to your location.

Taxation for CFD traders 

In most countries, profits made from trading CFDs are taxable and although the exact rules for online CFD trading in Canada will be different to those applied to CFD trading in Germany, for instance, the implication is the same. You are required to provide detailed records of all CFD trading activity to the appropriate tax authority and present a profit and loss analysis at the end of each fiscal year.

Top 5 steps for a secure & fair CFD trading experience – your personal to-do list

You will see throughout this guide that certain subjects come up repeatedly. If that is the case, then it’s because they are absolutely vital composites which when combined, make the best CFD broker in Canada.

Check the licensing

As we explained in the previous section, you are likely to find that most brokers display their licences on their websites, but it’s always worth double-checking that the licence is still current on the IIROC site too.

Read the terms and conditions

Nobody enjoys reading through the T&Cs that every broker in Canada is required to make available to traders. However, it’s definitely a better option than getting an unpleasant surprise because you didn’t.

Terminology

Make sure you fully understand all of the terminology used on the broker’s site and its implications, especially where it concerns anything that could have an adverse effect on your financial position.

Fees and accounts

CFD brokers are responsible for determining their own fee structures and there are several ways they might be applied to each trade. Some offer different account levels, each with its own limits and fees. It’s an area you should always explore carefully before committing. available too.

Using the demo

Most brokers have demo platforms available and the majority offer unlimited free use. However, there are some brokers who only offer a trial period and a few who even charge a monthly fee.

This is how our experts test CFD brokers – checking out the nuts and bolts!

Although there are many different factors we cover in every broker review, to be added to our recommended CFD broker list for Canada, there are certain areas where brokers must be up to scratch and others where we allow some compromises. In practice, each of those areas contains a subset of questions we answer and rate against – the more boxes we can tick, the better the overall rating.

Usability

We are looking for a well-designed and highly functional website in this section. So, we consider things like page loading speed, ease of navigation, logical menu options and all links should be working. On some level we do consider aesthetics as well, but feel that is more a matter of personal choice than a necessity.

Platform

There is often a good deal of variation between different brokers. Some will have several different platforms available, especially if they offer a range of financial instruments. Others may have a single bespoke platform that’s designed to be multi-purpose. Whichever the options, we will ensure that they perform as expected and assess their suitability for different levels of trading experience.

Assets available

As CFDs rely on company stocks as their underlying asset, theoretically the choices available are infinite. However, in reality, you’ll find that availability is not consistent between different brokers. We found that some CFD brokers take the global stock approach, others place more emphasis on Canadian stocks and in some cases, offer preferential fees for trading them.

Customer support

CFD trading times correspond with the hours and days that global stock exchanges are live. In essence, this extends from Sunday evening, through to Friday evening. The best CFD brokers in Canada will therefore provide customer support throughout the entire period that trading is taking place. Ideally, we would hope to find at least one immediate contact method, either a phone number, or a live chat facility. It’s also ideal if there is an email address available for more complex enquiries. Naturally, we seek timely and professional responses as well.

Check out our top-rated CFD Brokers in Canada:

82/100
Rating
Credit Card
CIMA - Cayman Islands Monetary Authority
FOREX.com CFD
Highlights
  • Regulated by top-tier financial authorities
  • Free-of-charge withdrawals
  • Low stock index CFD fees

Checklist: This is how you find YOUR perfect CFD broker! – Which is the best CFD platform in Canada for you!

Assuming that you have first checked out your broker’s licensing credentials and are also satisfied with the security protocols in place, there are other factors to consider that will help you track down the best online trading platform, as well as enhancing your CFD trading experience.

Type and level of experience

You will almost certainly find that not all brokers are equal. What one trader considers to be the best online CFD broker in Canada might have no appeal for another. There are two main points you should consider here. The first defining factor will be your level of experience and the second concerns your anticipated trading volume.

Platform

Whilst some trading platforms are ideal for beginners, others are incredibly complex. Our advice to anyone is to try several different options out and choose the one you feel most comfortable with using. Almost every broker offers a free demo account, which gives you the perfect opportunity to assess different types. Demos also have their positive side for those of you who are more experienced too, as they provide the perfect medium to hone your trading strategy without risk.

Payment methods

Due to the regulatory restrictions and tax laws applied to CFD trading in Canada, you will need a Canadian bank account to fund your trading activities and this is usually the only payment option available. The Canada Revenue Agency (CRA) scrutinises bank accounts to assess the “content and intent” of every trader and determines whether you are liable to pay capital gains tax or income tax on your profits.

PC or app

You might want to give some thought to where you will be doing the majority of your trading. Whilst some traders might still prefer an office environment with a PC, there has been a huge increase in trading on the go using a mobile app. If you are one of those, make sure that any CFD brokers you are considering provide a suitable and reliable way to access your account from a mobile device.

Read our reviews

On our website, you’ll find numerous CFD broker reviews for Canada. Every review we publish on our site will cover the same factors for each broker and will be laid out in an easy-to-read format. This provides you with a manageable way to compare any brokers that interest you before you make a final decision.

What else can you trade online in Canada? – Keeping your options open

As well as CFD trading in Canada, a number of other financial instruments also come under the regulation of the authorities we mentioned earlier. So, if you want to extend your trading portfolio, you may wish to consider investing into the stocks themselves, or taking a look at these alternatives:

  • Forex: Although it is often described as the foreign exchange ‘market’, trading Forex is an OTC (Over-The-Counter) transaction. It does not relate to any specific central exchanges as CFDs do. Forex is always traded in pairs which are categorised as major, minor and exotic. Major pairs always have the USD as one half of the pair and enjoy the highest liquidity.
  • Leveraged ETFs: An ETF is a selection of assets (sometimes referred to as a ’basket’) that corresponds to an index as the underlying asset, rather than a single asset. A leveraged ETF allows you to enhance potential returns using a 2:1 or 3:1 leverage ratio.
  • Options: An option is a contract between a buyer and a seller, which gives the buyer the right to buy a specified amount of a particular stock, bond, commodity or other asset in the future. An options contract defines the ‘strike price’, plus any other conditions applicable and the trade only completes when they match.
  • Futures: A futures contract is much less open. It comprises an agreement between a seller and a buyer which states that a specific asset will be bought (or sold) at a specific price, on a specific day in the future (the ‘expiration’ date). The asset is most often a stock, a currency or a commodity.

Conclusion

We hope that our guide has provided you with some useful and valuable information. Regardless of whether you want to trade CFDs in Canada, or you are looking for the best CFD broker in New Zealand, many of the principles of finding a good broker are exactly the same, irrespective of your location.

We do urge you to confine yourself to trading only with CFD brokers which are correctly-licensed and regulated for the Canadian market. There is a good selection to choose from and you’ll find plenty more help on our site to help you with that task.

CFD trading Canada FAQ

❓Is CFD trading legal in Canada?

Before you consider engaging in CFD trading, head over and read our definitive guide to finding the best CFD broker in Canada. There you’ll find out which brokers are legit for Canadians and how to choose the best one for your trading needs.

🏅Best broker for CFD trading Canada?

The best Canadian CFD broker is one that holds the correct licensing and best suits your trading needs. To find out all about licensing and what makes a CFD broker stand out from the crowd, then check out our in-depth guide to CFD brokers in Canada and how to find the right one.

🌎Can I trade CFDs with an offshore site?

The legality of trading with an offshore site is something of a grey area in Canadian law. However, there are plenty of excellent reasons to avoid that option altogether and select a fully-licensed and secure CFD broker in Canada instead. Why not head over and read our guide to find out why? 

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