Canada Forex Trading Brokers

July 5, 2013 7:37 am

Canada_forexHere you can find reviews of the leading forex trading brokers operating in Canada. Forex trading is definitely the most popular option for speculators out there. There is 24-hour market access, different ‘’commission-free’’ brokers and last but not least – huge potential gains. Plus it is extremely easy to set up your account and start practicing right away.

The Canadian dollar is one of the major currencies and it is considered to be the sixth most held currency as a reserve. It is often called ‘’loonie’’ because of the loon on the back of the coin of 1 cent.

This currency is highly popular among forex traders and this might be considered as some kind of anomaly because Canada’s economy is not in the top 5, actually it is number 10 in the world.

It has this position simply because of the population, but it stands 9th in the world when it comes to dollar-value exports. First the Canadian dollar was not part of the original Bretton Woods system and thus it was floating freely until 1962. Then a massive depreciation toppled a government and this forced Canada to go with a fixed rate. However, in 1970 due to the huge inflation the government was forced to go back to the floating system.

Forex Brokers in Canada

All major currencies in the forex market have central banks behind them and speaking of Canada, the bank is Bank of Canada. Like everywhere else, the main idea that stands behind the central bank is to try finding a balance between policies and economic growth while keeping the inflation as low as possible. The bank of Canada doesn’t intervene in the currency which is good for all those people who think of starting their forex career in this country. As a matter of fact the last intervention was back in 1998 – after that the government decided that all those interventions are pointless and ineffective.

As it was stated above, in terms of GDP which was measured in US dollars, the Canadian economy is number 10th on the list. Over the last 20 years Canada has enjoyed a really significant growth with only 2 periods of recession – in 1990 and 2009.

However, the inflation rates are persistently high but the fiscal policy along with the improved account balance had led to low budget deficits and lower inflation rates as well.

Here are some forex brokers that you can use in Canada:

XM.com
Think Forex
eToro
Markets.com

Where to Trade

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