Forex & CFD trading involves speculation on currency pairs & other markets as contracts for difference (CFDs). A forex broker provides brokerage services to retail & professional traders allowing them to go long (buy) or short (sell) in order to make profits or limit losses from speculating on the direction of currency prices. Brokers can either be a market maker who takes both sides of your trades or a no-dealing desk broker which simply connects you to buyers/sellers via computerized networks. Regardless of the type of broker you choose, it is important to ensure that the forex broker is properly regulated in Canada by CIRO.

AvaTrade is a top choice for Canadian Forex brokers due to their extensive range of assets that can be traded, user-friendly platforms and strong regulation from a number of bodies worldwide. Their customer service is also outstanding and they offer educational content for traders of all levels. This link theinvestorscentre.com

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Brokers that are regulated by IIROC typically provide their clients with a compensation fund that can reimburse traders up to $1 million in the event of a broker’s insolvency. In addition, they are required to clearly detail their margin requirements and provide a higher level of transparency as compared to unregulated Forex brokers.

One of the most common mistakes that traders make is choosing an unregulated Forex broker. It is essential to always verify that the broker you are considering is regulated by a Tier 1 regulator in Canada, such as IIROC. Brokers regulated by the FCA, ASIC and CySEC are also highly recommended as they have robust safeguards in place to protect their clients.