Best CFD Brokers in Canada 2024

Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user-guides, offer market insights, ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavours.

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The best CFD brokers Canada can be your companions to financial freedom. Bid farewell to the headaches that come with physical ownership of the underlying assets. And the strict industry regulations ensure a worry-free investment environment—no wonder it’s a booming industry in the country.

But cherry-picking the right broker is like searching for a pin in a hay sack. In fact, a single Google search for the “best CFD broker Canada” will bring you thousands of shiny platforms screaming for your attention. Talk about being overwhelmed before you even start trading!

That’s where we come in. We tested most of the brokers in Canada and beyond to bring you the best five. We based our professional research on regulations, fees, customer support, educational resources, and other crucial considerations. Our experts didn’t stop at the brokers’ offerings and promises—we also scoured review sites for real talks from real users on Google Play, the App Store, and Trustpilot.  

List of the Best CFD Brokers

  • XTB – Overall Best CFD Broker in Canada
  • OANDA – Best CFD Broker for Low-Cost Trading in Canada
  • Forex.com – Best CFD Broker for Portfolio Diversification
  • AvaTrade – Best CFD Broker for User-friendly Features
  • Saxo – Best CFD Broker for Advanced Canadian Traders
In This Guide

Canadian CFD Brokers: Comparison Table

The above five brokers are our best CFD brokers Canada. After selecting these players from a sea of providers, we further compared them against each other.

Our truth meters covered the brokers’ licensing, support service, payment methods, and demo account availability. The table below gives a snapshot of our findings:

Best CFD Broker CanadaLicense & RegulationsSupport ServiceSoftwarePayment MethodDemo Account
XTBCIRO, FCA, KNF, CySEC, BaFin, IFSC24/5xStation 5, xStation Mobile appBank transfer, Credit/debit cards, PayPal, PaySafeYes
OANDACIRO, FCA, CFTC, ASIC, FSA24/5OANDA Web, OANDA Mobile, TradingView, MT4Bank transfer, Credit/debit cards, PayPal, Neteller, Skrill (PaySafe)Yes
Forex.comCIRO, FCA, CFTC, ASIC, FSA24/5Mobile app, Web Trader, MT4, MT5, TradingViewBank transfer, Credit/debit cards, PayPalYes
AvaTradeCIRO, CBI, FMA, FCA, FSCA, CySEC, PFSA, ASIC, FSC, FSA24/5AvaOptions, AvaTradeGo, WebTrader, MT4, MT5, Automated trading, Mac TradingCredit/debit cards, Neteller, Skrill, Wire transfer, PerfectMoneyYes
SaxoCIRO, FCA, ASIC, FSA, MAS, CBI, SFC24/5SaxoTraderGO, SaxoTraderPRO, SaxoInvestorBank transfer, Credit/debit cards, PayPalYes

Brokers Short Overview

You’ve probably been there—a broker entices you with commission-free and extremely low spreads, only to hit you with hidden withdrawal and deposit charges. But if you haven’t experienced such issues, you don’t have to “stick around and find out.”

Our chosen platforms have among the most transparent fee structures in the industry. It’s possible to recoup the charges within just a few months of trading the diverse assets. And the inactivity shouldn’t worry you—they don’t spring into action if you remain active.

Fees

Best CFD Broker CanadaMinimum Deposit RequirementCommission/SpreadsDeposits/WithdrawalsInactivity Fee
XTB$0From 0.1 pipsFree$10 monthly
OANDA$0From 0.0 pipsFree$10 monthly 
Forex.com$0From 0.0 pips$25 withdrawal fee$15 monthly
AvaTrade$100From 0.6 pipsFree$50 after every 3 months of inactivity
Saxo$0From 0.03%FreeNone

Assets

Best CFD Broker CanadaStocksForexCryptoCommoditiesIndicesETFsOptions
XTBYesYesYesYesYesYesNo
OANDAYesYesYesYesYesYesNo
Forex.comYesYesYesYesYesYesNo
AvaTradeYesYesYesYesYesYesYes
SaxoYesYesYesYesYesYesYes

Our Expert Opinion about CFD Brokers in Canada

It’s time to dissect each platform’s strengths, pros, and cons. Rest assured, all brokers on our list have tier-one licenses from reputable regulatory bodies like CIRO and ASIC.

We bring you unbiased details collected from the internet. Our team spent most of our time on top sites like Trustpilot, App Store, and Google Play to collect raw reviews from real users. We aim to ensure you get the right and safe broker for your investment adventure.

1. XTB – Overall Best CFD Broker in Canada

After our months-long tests, XTB took the overall top position. It offers a reliable xStation platform, a free demo account, and many other benefits.

The broker is among those keeping pace with market dynamism. We enjoyed xStation’s sleek desktop version. You can also stick with the browser-based form or download a mobile app to trade on the go.

The platform ushers you into a world of tradable instruments, including major indices, commodities, and precious metals. You can also trade CFDs on shares from top-notch companies – think Apple, Amazon, Tesla, and other behemoths.

XTB understands the importance of drive-testing a platform before committing your efforts and money to it. Therefore, the platform provides a free demo with the ins and outs of its operations, interface, and learning resources. The easy-to-adjust virtual deposit allows you to train yourself as much as you desire. And when you’re ready, switch to the real platform in just a few clicks.

On the XTB platform, every day is a news day. Get instant access to fresh industry updates and analysis in the “News” tab. Any trader will appreciate this feature as it allows them to strike a trade while things are still hot. The broker also won big in technical analysis indicators—access hundreds of indicators to power your chart analysis game and master price reactions.

Did you encounter a problem along the way? XTB’s 24/5 top-in-class and multilingual customer support is there to help you. Call, email, or live chat with related to an asset. And the best part? The platform will assign you a personal brokerage account manager for a more tailored solution to your issue.

XTB

✔User-friendly interface
✔Expert customer support services

trustpilor logo
1,338 User Reviews
google
65,000 User Reviews
apple
8,200 User Reviews
financeraters logo
Our Rating
Total Rating:
74,538 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Zero withdrawal/depositing fees and minimum deposit requirement
  • Tight spreads starting from 0.1 pips
  • In-depth educational resources
  • Advanced and user-friendly xStation 5 platform
  • Excellent 24/5 customer support

Cons

  • $10 inactivity fee
  • Lacks MT5 and other third-party platforms

We love XTB because it is one of the most affordable brokers out here. How so? For starters, there are no XTB minimum deposit requirements. Moreover, the broker’s users don’t have to pay additional fees while funding their accounts or cashing out. Most importantly, XTB doesn’t require traders to cover account opening, maintenance, or inactivity fees. In the table below, we’ve highlighted the fees, commissions, and costs you should take note of before committing to XTB.

Fees and Charges Amount
Account opening and maintenance $0
Minimum deposit $0
Deposit fee $0
Withdrawal fee $0 for withdrawals above $50; $30 for withdrawals below $50
Investing commission From 0%
Spreads From 0.3 pips
Currency conversion fee 0.5%
Inactivity fee $0

XTB users have unlimited access to 5,800+ financial products, ranging from forex pairs to commodities. You will be hard-pressed to find a broker with a more impressive asset portfolio than XTB. Let’s run through some of the assets we encountered while exploring and evaluating the XTB online trading platform:

  • Shares: Over 2,900 stocks are available on the XTB online trading platform, including popular products like Tesla, Amazon, and Intel Corp. You can start investing in them with capital as low as $10.
  • ETFs: As an XTB client, you can diversify your portfolio by investing in different ETFs, such as Dell Technologies, FACC AG, and PayPal Holdings PLC. The best part is such products have zero commission and a $10 minimum order requirement, which is pretty low.
  • Forex: Over 71 popular forex pairs are accessible to XTB users, from EUR/GBP and AUDCHF to NZD/USD, USD/CAD, and GBP/ZAR.
  • Indices: Presently, this broker offers 30+ indices, including popular instruments like AUS200, FRA, and US100. You can trade these products and magnify potential returns with flexible leverage.
  • Commodities: XTB offers you the opportunity to trade CFDs over 25 commodities, from cocoa and coffee to oil, gold, and gas.

2. OANDA – Best CFD Broker for Low-Cost Trading in Canada

OANDA zoomed past other providers in the low-cost trading category. It offers tight spreads starting as low as 0.1 pips for major currency pairs. An active trader can easily maximize returns without spending a lot.

Unlike some platforms, OANDA doesn’t place a difficult-to-smash entry barrier on your path to success. No minimum deposit means anyone can be a trader on this platform. Start with any amount, test your trading muscles, and grow gradually.

Pricing flexibility is another strength we admire on this platform. Depending on your goals, strategy, and trading volume, you can choose between spread-only and commission-based pricing. Tired of hidden charges on unscrupulous platforms? Welcome to OANDA to experience transparent pricing structures.

The platform’s super-quick execution allows you to get the best available price. Thanks to the top-notch underlying engineering, it derives pricing from liquidity providers, futures contracts, and futures prices in relation to an asset. Thus, it automatically fills orders at the best available price whenever the market shifts.

And if you’re an elite trader, things get juicier. Get $5 to $17 cash rebates per million. We bet your high-volume CFD trading game has never been this sweet.

We see you wondering, “But cheap is expensive.” We assure you that low-cost trading on OANDA doesn’t translate to substandard features. The proprietary app has advanced charting functionality, indicators, and tools. It’s available for both iOS and Android mobile users.

The broker’s intuitive web interface is also great. It offers a rich suite of technical analysis tools. And if you desire to be part of the global financial community, remember to hop onto TradingView. You can also take your trading further using the popular MT4. This tool is a powerhouse of tick charts, alert trading, mini charts, and other advanced features.

OANDA

✔Offers a negative balance protection
✔Customizable trading platform

trustpilor logo
943 User Reviews
google
6,200 User Reviews
apple
20,000 User Reviews
financeraters logo
Our Rating
Total Rating:
27,143 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Competitive spreadsAdvanced trading platform like MT4
  • Features-packed, user-friendly mobile app
  • Rich educational materials
  • Flexible funding methods

Cons

  • $10 inactivity fee
  • Swap rates may be higher than the industry average

OANDA broker has a clear fee structure with no hidden charges. This makes it easier for you to know how much you will be paying once you make a commitment. Some of the fees to incur at OANDA include the following:

Trading and Non-Trading Charges Details
Account Opening $0
Management Fee $0
Minimum Deposit Requirement From $0, depending on your jurisdiction
Commission From 0% on US-listed shares
Spreads From 0.6 points
Deposits and Withdrawals Free deposits. Withdrawal fees apply based on the payment method used
Inactivity $10 after 12 months
Overnight Funding Varies based on global market conditions
Currency Conversion Fee Calculated by applying a 0.5% mark-up or mark-down

From our analysis, we discovered over 8,000 trading instruments at OANDA. The assets are spread across various classes, including forex, shares, commodities, cryptos, indices, ETFs, and more. Note that some asset availability is limited to specific regions. For instance, while the broker mostly focuses on CFD trading and spread betting, real stock investing is offered to clients within the EU. You can invest in real shares from Germany, France, Spain, and the United Kingdom.

The best element about trading at OANDA is an opportunity to apply leverage in CFD and spread betting trades. Retail traders are given favorable limits up to 30:1. In contrast, professionals get 200:1. This makes it easier for you to manage larger positions with a small capital, thus increasing your chances of earning good returns.

Here is a breakdown of the assets offered at OANDA for informed decisions:

Asset Class Number Offered
Forex 70+ currency pairs
Shares 2200+
Indices 14+
Commodities 14+
Cryptocurrencies 30+
ETFs 40+
Bonds 6+

Disclaimer: CFD assets are complex, and carry the risk of losing money due to leverage. While many traders have earned good returns from the activity, more than 76% of retail clients lose their money. Therefore, consider whether you understand how CFD trading works and if you can afford to manage the risk of losing your money before venturing into such assets.

3. Forex.com – Best CFD Broker for Portfolio Diversification

Diversification is crucial in the world of CFD trading. The last thing you want is to plummet down due to unforeseeable adversity. We recommend Forex.com for its diverse tradable assets, commission-free trading on CFDs, and more.

The platform opens up a world of CFD trading on diverse instruments. For example, you can trade stocks, ETFs, and commodities. If the other two disappoint you, how about venturing into the world of precious metals like gold?

We realized that trades on stocks, indices, and commodities don’t attract commissions. Their spreads-based pricing ensures more of your capital works for you. Furthermore, the broker offers competitive spreads as low as 0.0 pips on major forex pairs. Enter and exit positions at low cost to rebalance your diversified portfolios.

Forex.com knows your diversification game will be limited if the necessary features don’t exist. That’s why it has a treasure trove of MT5 and TradingView tools on top of its proprietary web and mobile platforms. The integrated Reuters news feature makes the broker’s MT5 stand out.

Employ the platforms’ performance analytics to improve your portfolio management prowess. You’ll also love the charting features and real-time data as you steer your diversification ship in the right direction. Furthermore, access 80+ indicators and let the platform’s behavioral science technology guide you to the right steps.

Another crucial element for diversification is a safe and secure environment. Forex.com doesn’t fail here. It boasts licenses from CIRO and a host of other world-class regulatory bodies. Furthermore, it’s a trusted global leader and a subsidiary of StoneX Group. Our research found this enterprise is a Fortune 100 behemoth with $54 billion + revenue.

Enrich your expansion journey with Forex.com’s in-depth educational resources. The platform’s webinars, market analysis, and trading courses offer practical skills and insights. A section on popular topics delighted us with major and current CFD world movers.

Pros & Cons

Pros

  • Extensive market access via diverse instruments
  • Responsive customer service
  • Commission-free trading on indices, stocks, and commodities
  • Rich educational resources
  • Advanced platforms like MT5 and TradingView

Cons

  • $15 monthly inactivity
  • The fee structure may be complex for some beginners

4. AvaTrade – Best CFD Broker for User-friendly Features

AvaTrade had you, the user, in mind when designing every nook and cranny of their tools. Furthermore, they partnered with Toronto-based Friedberg Direct for comprehensive CFD trading experience. While some brokers sacrifice crucial features for simplicity, AvaTrade brings you the best of both worlds.

Want to start trading without downloading software? AvaTrade’s WebTrader platform has you covered. But make no mistake–this simple platform comes with action-packed trading charts and indicators.

How about hopping onto the broker’s mobile app to trade from anywhere at any time? AvaTradeGo’s responsive features ensure you take advantage of all trading opportunities. Execute your moves with a swipe and track your performance like a boss. The mobile access to advanced charts surprised us with the zoom capabilities. 

We cannot forget the broker’s risk management tool, AvaProtect. Are you still learning the ropes of CFD trading? We recommend you befriend this tool to safeguard against losses for a specified period. If you need to learn or recall something, immerse yourself in AvaTrade’s Education Center. You’ll learn everything from stock trading to economic indicators and trading rules.

User-friendliness is nonexistent on a platform where scammers and hackers hang out. Fortunately, AvaTrade has implemented water-tight security measures to remain safe. The provider stores your money in segregated accounts. Furthermore, it uses the latest hard-to-crack data encryption technologies.

Friendliness extends to their professional customer support. You can call, email, or live chat with the team if you run into an issue during the trading journey. During our tests via live chat, a live agent attended to our concerns within minutes. 

AvaTrade

✔Regulated by FCA
✔The platform supports algorithmic trading

trustpilor logo
8,869 User Reviews
google
10,200 User Reviews
apple
25 User Reviews
financeraters logo
Our Rating
Total Rating:
19,094 User Reviews
Pros & Cons
Fees
Trading Assets

Pros

  • Top-class variety of platforms
  • AvaProtect, innovative risk management feature
  • In-depth educational materials
  • 24/5 multilingual support channels
  • User-friendly interface

Cons

  • Limited product portfolio
  • High inactivity fee

Our experts investigated the AvaTrade broker’s fees and charges. We first noticed that the platform has a modest minimum deposit requirement of $100. What’s more, its users pay no additional costs while depositing funds or cashing out. That makes AvaTrade an ideal broker for both cost-conscious and newbie traders who want to test their waters with small capital before going all in.

That said, AvaTrade requires dormant account holders to pay $50 after every 3 consecutive months of inactivity. Moreover, if you let your account remain inactive for over successive months of inactivity, the broker will charge you a $100 administration fee. Not to forget, AvaTrade requires traders who hold positions overnight to cover a premium.

Here’s a breakdown of the fees you should expect to encounter while trading with this service provider:

Fees and Charges Amount
Spreads From 0.9 pips
Administration fee $100
Inactivity fee $50
Overnight premium Yes

The AvaTrade trading platform’s users have access to over 1,250 financial instruments, from forex pairs and indices to commodities, options, ETFs, and more. Below is an overview of some of this service provider’s product offerings:

  • Forex: As an AvaTrade user, you can trade diverse popular currency pairs, like EUR/USD, CAD/JPY, and USD/TRY. You can also boost potential returns with leverage of up to 400:1.
  • Commodities: From crude oil to silver, corn, and platinum, countless commodities are available on the Ava trading platform. They have competitive spreads and juicy leverages for individuals who want to access larger positions with small capital.
  • Cryptocurrencies: With an AvaTrade account, you can trade crypto CFDs like BTC/USD, Ripple, and Bitcoin Gold. These assets have reasonable spreads starting from 0.10% over-market.
  • Stocks: Over 90 stocks are accessible on the AvaTrade platform, including popular products like Groupon, Apple, and Microsoft. You can trade such instruments and enjoy reasonable spreads starting from 0.13%.
  • ETFs: If you want to trade ETFs, AvaTrade has you covered. You’ll find numerous outstanding assets, such as the MSCI EAFE Index Fund, S&P 500 VIX Short-Term Futures ETN-Series B, and Energy Select Sector SPDR.
  • Indices: After opening an AvaTrade account, you’ll get uncapped access to US500, UK100, CHINA A50. The broker also allows index traders to enhance potential returns with up to 100:1.
  • Options: AvaTrade’s AvaOptions trading platform allows users to trade options. It’s also equipped with 13 strategies, including call spread, put spread, and straddle.

5. Saxo – Best CFD Broker for Advanced Canadian Traders

From our tests and research, we can confidently say Saxo is a premier choice for seasoned traders in Canada. The broker has extensive tools and features tailor-made for your advanced moves.

Venture into an extensive selection of CFDs across diverse assets. There’s something for your profit-making adventure, from stocks to indices and commodities to bonds. Yes, it’s time to wear your diversification hat.

The broker also provides cutting-edge trading platforms capable of sustaining your advanced trades. For the best results, make SaxoTraderGo and SaxoTraderPRO your starter pack. If you’re already a TradingView user, connecting it to the Saxo platform is a breeze.

The platforms have charting tools laden with 85+ technical indicators, signals, drawing, and annotation tools. One feature that stood out in our test is the speed-optimized trade ticket. All you need to execute a trade is on the ticket. With it, trading takes only a few clicks. And here’s a side note: these features will supercharge your decisions based on professional market analysis.

You can start with the demo account that mirrors the real thing. It has a $100,000 virtual deposit for sharpening your skills for up to 20 days. This period is enough even for newbie traders.

Maximize your returns through multiple paths. The premium packages and more account value come with lower charges. You can also add up to four sub-accounts and enjoy low conversion charges on up to 24 currencies.

Saxo is also a great platform for margin trading. It has a competitive margin rate of 5% and up to 1:20 leverage. The tiered margin model optimizes margin requirements as exposure increases, a rare flexibility in the industry. Other must-explore capabilities include fractional trading, 23-hour trading, and comprehensive risk management tools.

Pros & Cons

Pros

  • Advanced trading platforms
  • Competitive leverage and margins
  • Industry-grade risk management features
  • Extended trading hours
  • Third-party integrations to advance your trades

Cons

  • Advanced features may be unfriendly for newbies
  • Slow customer responsiveness during peak hours

CFD Trading in Canada

CFD Trading in Canada

CFD trading in Canada is legal but heavily regulated. CIRO sets strict regulation standards that all brokers should adhere to if they’re to operate within the country. Furthermore, all CIRO-registered brokers have teamed up with CIPF to provide up to C$1 million in investor protection cover.

The country has three regional regulatory authorities in addition to CIRO:

  • The British Columbia Securities Commission
  • Ontario Securities Commission
  • The Autorite des Marches Financiers

A broker should be authorized by at least one of the above bodies to operate in the relevant region.

As you’ve seen, Canadians can enjoy a safe CFD trading space. However, the country has stringent leverage-related requirements.

CIRO limits margin trading on various assets depending on your brokerage account’s base currency. These requirements limit the dollars your broker can lend you to buy CFDs.  

The oversight authority also requires CFD platforms to publish risk warnings to inform you about potential risk levels. Furthermore, your broker may require detailed information when registering your account.

What is CFD Trading?

cfd trading

CFD, or Contracts for Difference trading, is a financial derivative in which you speculate on the movement of underlying assets without physical ownership. The assets could be stocks, commodities, indices, currencies, etc.

There’s no physical buying and selling of assets in this arrangement. Instead, it’s a contract between you and your broker to exchange the asset’s price difference between the contract’s opening and closing times.

How Does CFD Trading Work?

So, what’s the CFD working mechanism? It is simpler than many people think. Here we go:

  • Opening a position: Do you believe the asset’s price will shoot up? Go long (buy). But if you expect a fall, go short (sell). Choose the asset and determine the contract’s size to open a position.
  • Leverage: Margin trading is the typical mechanism in CFD trading. That means you pay only a small fraction of the trade’s value to open a position. Remember that leveraging maximizes both profits and losses.
  • Price movement: Price change determines whether you make a profit or loss. A move in your favor translates into a profit. On the contrary, a loss happens if the market moves against your position.
  • Closing a position: An opposite trade closes the CFD position (for example, selling an asset after buying it). Your gain or loss is the price difference between these trades.
  • Profit calculation: Multiply the price difference by CFD units to get your profit or earnings.

CFD involves costs, such as spreads, commissions, and overnight charges. Check with your broker for their complete fee structures.

As said, you don’t own the assets physically. That implies you don’t have voting rights and can’t benefit from dividends. However, a platform may tweak your account to reflect dividend earnings.

How to Choose the Best CFD Broker in CA

A reliable CFD broker in Canada will help you unleash your skills and grab opportunities along the way. Remember, reliability goes beyond a platform’s features—it also includes licensing and reputation. Our experts advise you to consider the following as bare minimums before settling for that enticing platform:

Regulations and Safety
Trading Software
Range of Markets
Fees and Costs
Customer Support
Educational Resources
Reputation

The broker should have a valid license from CIRO or other top-tier regulatory authorities. This ensures they adhere to stringent industry standards regarding financial security and safety. One requirement is storing clients’ funds in segregated accounts to safeguard against insolvency.

Go for a user-friendly trading platform without a cluttered interface or limited features. An excellent platform also has a robust mobile app and popular tools like MT4 and MT5. Don’t forget to check the availability of advanced tools like charting, technical analysis, and automated trading features.

You don’t want to suffer great loss because of failure to diversify into as many assets as possible. The best broker provides a gateway to a world of multiple CFDs like stocks, commodities, indices, forex, and cryptocurrencies.

Unreasonable charges and hidden fees can frustrate your profit-making ambitions. The platform should clearly outline its fees, including withdrawal/deposit charges, spreads, commissions, conversion fees, and minimum deposit requirements. Ensure all these figures are reasonable and recoupable.

What if you get lost in the huge CFD trading jungle or an unexpected issue crops up out of nowhere? A responsive customer service team will be there to help. Check if the platform has a robust FAQ or help center and a variety of support channels.

If you’re a newbie, you’ll want to learn CFD trading before committing your capital. Seasons traders, too, may need to recall a concept or follow news. For this purpose, a platform should provide demo accounts, educational resources, and news sections. Be sure you can consume the resources in your preferred form, such as articles, videos, and webinars.

Don’t take a broker’s word for it. Instead, visit Trustpilot and other popular review sites to see what real users say about it. Pay particular attention to the negative reviews and see how the broker responded. You don’t want an arrogant provider that fails to correct issues.

CFD Trading Risks for Canadian Traders

Just like in any other business venture, risks haunt CFD trading. Awareness of them reduces your chances of falling into pitfalls and helps you reap maximum profits. The common ones include:

  1. Market risks

A slight market movement can spark a major shift in CFD prices. We realized that markets like forex, cryptocurrencies, and commodities can be hard-hit by volatility. But diversification helps spread the risks.

  1. Counterparty risks

CFDs trading entails a contract between you and the broker. That means you may suffer a loss in case the provider goes bankrupt or fails to perform its agreed-upon duties. That’s why you need to scrutinize brokers before choosing any of them.

  1. Emotional risk

Most traders underestimate this risk. It often manifests as fear, overtrading, anxiety, revenge trading, and impulse trading. Instead of committing such mistakes, educate yourself, set solid goals, and stick with your clear plan. Remember to befriend risk management tools.

Pros & Cons of CFD Trading

CFD trading isn’t without its share of positives and negatives. Weigh them objectively to see if it’s the right venture for your financial goals.

Pros:

  • Ability to leverage
  • You can short-sell your assets because you don’t physically own them
  • Diverse CFD markets and assets
  • Lower transaction costs than traditional trading
  • Hedging opportunities to manage other investments’ risks
  • Single-platform access to worldwide markets
  • Flexibility to profit from going long or short

Cons:

  • Leveraging may also magnifies the loss
  • Highly volatile market conditions

Discover more by reading our other article regarding Discount Brokers in Canada.

Conclusion

The best CFD brokers Canada allow you to speculate on financial assets without extra pains in fees, regulations, and customer support. You also get a diverse playground of tradable instruments to spread risks and boost your earning potential. 

With our well-researched platforms, your search for the right fit ends today. But remember to set your financial goal and avoid emotional trading. The trick is to craft a trading plan and educate yourself on the best strategies. Execute your moves on the demo account before hitting the ground running.  

author image
Thadeus Geodfrey

Thadeus Geodfrey is an experienced and celebrated writer and self-taught trader specialising in cryptocurrencies and forex. Market analysis, identifying fraudulent brokers, and security are his cup of tea. At BrokerRaters Thadeus develops educational materials and user-guides, offer market insights, ensures our content conforms to the best standards. Join Thadeus to succeed in your trading endeavours.

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