You are required to complete Know your customer rules and validate the details by Identification proofs. Once done, you need to fund your account with at least the minimum deposit to activate your Forex trading account in Canada.
Foreign exchange trading is legal in Canada and is regulated by the Investment Industry Regulatory Organisation of Canada. This organisation oversees the disciplined operation of Forex broker accounts in Canada. There are numerous brokers, namely Ava Trade, Forex.com, IC Markets, Interactive brokers etc,. The first step to commence trading in currencies is to complete research comparing Forex brokers and narrowing down to an account that best suits your needs. Let us get to know how to open a Forex account in Canada.
The procedure for opening a Forex trading account varies depending on your service provider. However, we have illustrated the steps that are common for the majority of the accounts.
The first step is to complete the ‘Know your Client’ process in which you need to disclose your name, age, occupation, marital status, Social Insurance Number (SIN), address, bank account details, cashflow details, net worth, risk appetite, objectives, investment knowledge etc,.
In order to validate the above details, you are required to submit any of the following documents (as requested by your service provider). They are utility bills, insurance documents, birth certificate, marriage certificate, Canadian Pension Plan statement, bank account statement, bank cheque book, credit card statement, loan account statement etc.
Once your application is approved, you can fund your account through your bank account and can start trading.
A Majority of the accounts allow you to open an account online.
Before opening your account, you must determine what account you will require – a mini account that allows you to trade in small lots. A standard account where you can trade bigger lots, that will have better tools and information, or a VIP account that requires you to trade in $10,000 or more.