Best Canadian CFD Broker 2022

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.

Is CFD trading legal in Canada? – Are Canadian brokers legit?

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.

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:

1.

82/100

Rating

FOREX.com CFD

FOREX.com Review

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Highlights

• Regulated by top-tier financial authorities
• Free-of-charge withdrawals
• Low stock index CFD fees

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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