Explore Forex Trading in Canada

When trading forex, you speculate on whether the price of one currency will rise or fall against another. For example, if you believe that the value of the US dollar will rise, relative to the value of the Canadian dollar, you would trade the USD/CAD pair.

Forex margin rates are usually expressed as a percentage, with forex margin requirements typically starting at around 1.5% for major foreign exchange currency pairs. Your FX broker's margin requirement shows you the leverage you can use when trading forex with that broker.

Learn more about margin in forex trading

One of the advantages of trading CFDs is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it's important to manage your risk.

Learn more about leveraged trading

The forex market is most active during overlapping trading sessions. The London-New York overlap (8am-12pm EST) typically sees the highest volume and spreads may be narrower, which makes it popular for trading major pairs like EUR/USD and GBP/USD. The USD/CAD pair is particularly active during North American trading hours (8am-5pm EST). Less liquid pairs and exotic currencies may have wider spreads outside peak hours.

Learn more about forex trading hours
Learn more about forex currency pairs

The forex market is closed on weekends, opening Sunday at 5pm EST and closing Friday at 5pm EST. While you can't execute trades when the market is closed, you can use this time to review your positions, plan your trading strategy, and analyze charts on our platform. Our customer service team is available 24/5 to support you whenever the markets are open.

Learn more about forex trading hours

Forex prices are influenced by economic data releases (employment, inflation, GDP), central bank decisions on interest rates, geopolitical events, and market sentiment. For Canadian traders, factors like oil prices, US-Canada trade relations, and Bank of Canada policy announcements significantly impact the CAD.

Learn more about factors affecting forex prices

Spot forex involves buying and selling actual currencies for immediate delivery. Forex CFDs (Contracts for Difference) allow you to speculate on currency price movements without owning the underlying currencies. With CMC Markets, you trade forex CFDs, which means you can take positions on both rising and falling markets and use leverage to control larger positions with a smaller deposit. However, it's important to remember that leverage magnifies both potential profits and losses, so CFD trading carries significant risk and may not be suitable for all investors.

As a CMC client, your money is held separately from CMC Markets’ own money and is held on trust in segregated bank accounts with a Canadian bank. This account is opened and maintained in the name of CMC Markets Canada Inc. We do not use client money to hedge our positions or to meet the trading obligations of other customers. This offers you financial security and you can rest assured that your money with us is protected.

Yes, CMC Markets Canada Inc. is a member of the Canadian Investment Regulatory Organization (CIRO). CFDs are distributed in Canada by CMC Markets Canada Inc. acting as principal.

There's no cost when opening a live trading account with us. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you'll need to deposit funds in your account to place a trade.

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, make a minor contribution to our overall revenue.