Brokers With CAD Accounts

The Canadian Dollar (CAD) is the sixth most traded currency globally. There is also an increasing number of online brokers that support CAD as a base currency. This article covers the key features of brokers with CAD accounts, how they work and the benefits of using the currency.

How CAD Accounts Works

CAD accounts are trading terminals where the base currency is Canadian Dollars. This means no currency conversion fees for investors in Canada. The price of assets, commission charges, plus deposits and withdrawals are all displayed in Canadian Dollars.

Brokers with CAD trading accounts are also more likely to be regulated by the Investment Industry Regulatory Organization of Canada (IIROC), offering retail investors additional safeguards.

CAD Explained

The Canadian Dollar (CAD) was introduced in 1867 when three provinces; Canada, New Brunswick and Nova Scotia merged as one federal country and adopted the Dollar. In 1871 the Canadian government passed the Uniform Currency Act, unifying other provinces under the CAD.

The Canadian Dollar is one of the top ten currencies traded globally and its price is heavily influenced by the value of the US Dollar. 77% of Canadian exports go to the United States and over half of the country’s imports are also from the United States.

The currency is nicknamed “Loonie” owing to the Loons (an aquatic bird) printed on the back of the notes. The famous bird is now recognized as a national symbol.

Benefits of Brokers With CAD Accounts

There are several key advantages to signing up for a CAD account:

• Popularity – The CAD is heavily linked to the USD, making accounts popular with active forex traders
• Conversions – Traders that have a Canadian bank account or already own CAD won’t have to pay to exchange their capital into another currency, reducing fees and protecting profit margins
• Regulation – Brokers with CAD accounts may hold a license with the Investment Industry Regulatory Organization of Canada (IIROC) – a trusted financial watchdog that aims to protect retail traders

Checking Brokers Offer CAD Accounts

Most brokers list accepted base currencies on their website at the sign-up stage. If it is not immediately apparent, you can check the FAQ portal in the customer support area. Alternatively, you can contact the support team through live chat, telephone, email or social media. Finally, you can check where the brokerage is based and whether they offer any local payment solutions, such as Moneris.

Comparing Brokers With CAD Accounts

When trying to determine which are the best brokers with CAD accounts, there are several factors to consider:

Assets

Some swing traders open an account because they want to invest in a particular asset, for example, Canadian-headquartered Shopify. With this in mind, it is important to check a platform offers access to the products that you are interested in. Leveraged CFDs, binary options and emerging cryptocurrencies are all popular with retail investors.

Fees

Trading and non-trading fees are also important. Are spreads and overnight charges competitive? Also check for any deposit and withdrawal fees, plus currency conversion rates. We always recommend signing up with a broker that has a clear pricing schedule with no hidden fees.

Regulation & Reputation

Regulated brokers may offer negative balance protection, financial compensation schemes and fair sign-up offers and promotions. Local traders will probably want to register with a firm that holds a license with the Investment Industry Regulatory Organization of Canada (IIROC). Other trusted agencies include the Cyprus Securities & Exchange Commission (CySEC) and the UK Financial Conduct Authority (FCA).

Trading Platforms

The top brokers with CAD accounts offer a user-friendly and reliable trading platform, such as MetaTrader 4. Technical traders should check the range of drawing and analysis tools while fundamental investors may want to look for integrated news feeds and market sentiment tools. Mobile traders may also want to check that a free iOS or Android application is available to download from the relevant app store.

Bottom Line on Brokers With CAD Accounts

Traders with local bank accounts or high-volume forex investors may want to register with a broker that offers the Canadian Dollar as a base currency. Pepperstone, AvaTrade and VantageFX are all top-rated brands that offer CAD trading accounts. Use the tips in this article to open an account and start trading.

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