The “Foreign Exchange Market”, also known as Forex, is an international market where users can trade currencies, trying to speculate on the price change of these pairs. Actually, there are a lot of Canadian traders interested in this activity, but inexperienced investors have to pay attention to some details. First of all, everyone needs to know how to choose the best Forex Broker in Canada: the most important step to trade safely.
Foreign Exchange Market: how does it work?
There are so many traders worldwide that everyday decide to invest in Forex, but how does it work? We can define it as a decentralized market where you can trade 24/5.
Users have the opportunity to make money speculating on best currencies pairs: in effect, they can choose between major pairs (for example, EUR/USD) or exotic currencies (USD/TRY).
One of the best advantages of this activity is that you can decide when going long or when to sell the pair, so going short. In this case, short selling gives to Forex traders the chance to reap benefits even if the market seems to not offer one of the best situation.
Naturally, to become a successful trader, you need to learn how to choose a good broker: the intermediary who facilitates your online exchanges.
How to choose a good broker?
If you are wondering how to choose a good and professional broker, there are some rules you need to learn right now. Before anything else, best brokers online are regulated by national authorities: this means that they must respect directives to protect traders.
Reliability is as important as fees: a good platform offers competitive costs and a really cheap minimum deposit. That’s why a lot of retail investors decide, every day, to operate on the Forex market: they can start with a low capital.
There are other features related to the choice of a good broker:
- Tools and functions;
- Assets available on the platform.
In the end, if you’re struggling with this decision, you can simply read some online review: one of the best way to know everything about an online trading platform is sharing experiences with other users.
Forex Trading in Canada: how does it work? It is legal?
Now, we can focus on forex trading canada. Everyone should know that in Canada there are a lot of forex brokers, but the majority of these platforms offer limited services to their users. For this reason, Canadian traders have to use only platforms regulated by IROC (Investment Industry Regulatory Organization): an international organization who verifies dealers activity and markets transparency.
Even in this case, traders have the occasion to do forex trading with a trusted broker that offers CAD deposit. This means that you can use CAD as a base currency too, enjoying low fees and rapid execution.
Well, in a few words, we are trying to explain that forex trading is legal in Canada, except in Alberta where you have to pay attention to some limitations. In effect, in Alberta only institutions or professional traders are allowed to invest to forex and other markets.
If you want to start forex trading in Canada, you should follow this easy process: proving your identity with a personal document and your residence. Generally, every country imposes these steps to start trading, so don’t worry: it’s a fast operation that will allow you to negotiate your favorite currencies pairs.
In the end, Canadian traders have the possibility to operate with professional brokers and giving themselves the chance to achieve the expected results thanks to forex trading.