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Best USD/CAD Forex Brokers

The USD/CAD is one of the so-called major currency pairs. It expresses the exchange rate relationship between the US dollar and CA dollar, that is, how many Canadian dollars it takes to buy one American dollar.

The United States Federal Reserve and the Bank of Canada play a key role in how this pair is traded. Additionally, the Canadian dollar is known as a commodity currency due to the number of natural resources it exports. Knowing how to use this information will aid you in trading successfully. Apart from this, the broker a trader picks also has a great impact on one’s results because of the differences in the spreads and leverage across different brokers.

How Trading USD/CAD Works

USD/CAD TradingThe foreign exchange market is the largest of its kind, as its trading value is in the trillions. It is characterised by its high liquidity and volatility. If you wish to trade the USD/CAD, you can do so at any time of the day since the forex market as a whole does not close on a daily basis.

Trading is based on knowing how many Canadian dollars you need to purchase one USD, and the fluctuations of this value. Given its major status, pretty much all brokers on the web allow you to trade this pair on their platforms.

A peculiar aspect of the CAD and, in turn, the USD/CAD, is that it is very strongly affected by the global oil prices. As touched upon earlier, the Canadian dollar is a commodity currency. A large portion of its exports consists of oil, which means that the price fluctuations of oil strongly affect the value of the CAD and the country’s economy in general. In other words, when oil prices increase, so does the value of the Canadian dollar, which impacts the USD/CAD negatively. This is known as a commodity correlation.

Trading the USD/CAD is done in lots, and it is conducted virtually as opposed to the exchange of paper currency of days past. The fees associated with trading this pairing are either in the form of a spread or a commission. Many brokers will offer both variations as an option.

Top USD/CAD Trading Brokers

choosing a brokerThe foreign exchange market has been getting more and more accessible in recent years thanks to the sheer variety of forex brokers that offer their services on the web. Differentiating between the good ones and the brokers that are untrustworthy in some way is crucial, which is why regulation plays an important role in choosing a website to trade on.

The way the broker treats its customers is also important, as are the types of platforms on offer, the customer service, the fees, and so on. This is far from a small amount of information to keep track of as you research potential options, so we offer our assistance by introducing you to the following ten brokers.

Related Topics


1. Why do traders mean by “loonie”?

The loonie is how the Canadian dollar is nicknamed. The origin of this nickname has to do with the Canadian one-dollar coin, as there is a loon on its back. You are, therefore, “trading the loonie” when it comes to the USD/CAD.

2. I live in the EU, why do forex brokers offer leverage only up to 30:1?

To put it simply, brokers are, by law, not allowed to offer leverage that exceeds 30:1 to European retail investors. The law in question was introduced by the European Securities and Markets Authority, and it has been in force since 2018.

3. What do brokers mean by “pip”?

Pip stands for “percentage in point” or “price interest point”. It is a unit of measurement that shows us the price movement that occurs between the USD and the Canadian dollar. It functions the same for all other FX currency pairs. The value of one pip is typically $0.0001.

4. What is copy trading?

Copy trading involves following another investor and copying their trades. It can be done automatically by designating a certain amount of your funds for the purpose, and manual copying is the other variation. Copy trading can be successful, but it is ill-advised to copy others blindly. Instead, you must first carefully assess the history and skills of the investor in question.

5. Is it mandatory to start trading with a demo account?

No, but it is strongly recommended. Trading the USD/CAD is no simple task, and it takes practice to become a good investor. Making mistakes is inevitable if you are a beginner, so it is best you practise for a while on a demo account before you move on to trading with your own hard-earned money.