CFDs

To become a successful trader, it’s very helpful to develop a sound trading strategy and have sufficient risk capital. We’ve evaluated over 60 forex brokers, using a testing methodology based on 100+ data-driven variables and thousands of data points. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

In order to simply identify the trading opportunities you want to pursue, you might need to review charts, read up about the markets in other countries, or review economic calendars. A foreign exchange (FX or Forex) contract is an agreement between you and a broker to exchange an amount of money equal to the difference between the opening and closing price of an FX position. Easily place stock and option trades in real time, access investment details, withdraw or transfer between Questrade accounts, and manage your account all in one award-winning brokerage app1. Trading in derivatives involves substantial risk of loss and is not suitable for all investors. An experienced media professional, John has a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets.

While this is less common it is still a possibility when trading FX. Sometimes market conditions undergo changes that can nullify some of your strategies that have worked in the past. Under these circumstances, you might need to re-evaluate your strategy, and would prefer to do so without further risk to capital. Drawdown limits of 25% to 40% are common for experienced traders. There can be a lot of temptation to simply react to random news or market movement rather than sticking to your strategy. You should only enter a trade if it makes sense to you based on your analysis at the time, and if circumstances change, you shouldn’t let your ego deter you from selling a losing position before the loss grows.

• Keep in mind that the total transaction cost of an FX trade consists of the trading spread youpay, which may vary from the target spread.
• As a trader you should define the level of acceptable risk you are willing to expose yourself to and be strict about staying within that level.
• One interesting factor of FX trading is that the time you are available (and the time zone in which you live) can influence the product and markets you might want to trade in.
• To become a successful trader, it’s very helpful to develop a sound trading strategy and have sufficient risk capital.
• A financial update form has to be completed and approved by Questrade before the risk capital limit can be increased.
• Questrade opened its doors in 1999 and we’re still one of Canada’s fastest growing online brokerages.

Introduction to CFD Trading

The world of FX trading, rather like the world itself, is quite big and varied, but we have a few resources to help get you started on your learning journey. For example, you might be trading British Pounds (GBP) vs. US Dollars (USD). Discover the different investment products offered at Questrade. You can set audible price alerts on our platform to receive notification of price action reaching the pre-defined level.

Included free with all Questrade accounts

I’ve tested dozens of forex brokers and their trading software over the past decade, leveraging my more than 25 years of experience in the financial markets. This guide highlights my picks for the best forex trading platforms and tools for 2025. Test the global markets as if you’re trading in real life, but with simulated funds.

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Along with years of experience in media distribution at a global newsroom, Jeff has a versatile knowledge base encompassing the technology and financial markets. He is a long-time active investor and engages in research on emerging markets like cryptocurrency. Jeff holds a Bachelor’s Degree in English Literature with a minor in Philosophy from San Francisco State University. At ForexBrokers.com, our reviews of online forex brokers and their products and services are based on our collected data as well as the observations and qualified opinions of our expert researchers. Each year we publish tens of thousands of words of research on the top forex brokers and monitor dozens of international regulator agencies (read more about how we calculate Trust Score here).

Review Methodology

• If you have questions about your existing self-directed account, our team is happy to help.
• Plus, get discounts on data transmission costs and access to the Daily Negotiator, your personal technical analysis tool.
• This policy protects clients beyond CIPF limits, up to a maximum of CAD $ 9 million per client, per account, and is subject to the maximum guarantee limits determined by Questrade.
• Analyzing the market is a critical component of any strategy for trading.
• He has served as a registered commodity futures representative for domestic and internationally-regulated brokerages.
• Note that the total transaction cost of a foreign exchange transaction is the spread you pay, which may be different from the target spread.
• With more than 110 currency pairs, and target spreads as low as 0.8 pips, Questrade Global unlocks the world’s markets for all investors.

In the modern age, there’s a seemingly endless variety of analysis and economic indicators put out by governments and private groups regarding different aspects of the economy. Traders who make use of fundamental analysis try to use this data to understand the strengths and weaknesses of economies and predict future trends and activity. They believe that, over the long-term, these fundamental factors support and influence the overall direction of currency markets. This means you can hold Canadian and U.S. dollars at the same time, letting you avoid forced currency conversion fees on each transaction 3. Questrade, Inc. provides administrative, trade execution, custodial, and reporting services for all Questwealth accounts. Derivatives on global stocks, currencies and commodities are not available in margin or registered accounts.

Questrade Trading Platforms

Make better, more informed decisions with additional level 1 and level 2 data streamed directly into your platform. Ready to open an account and take charge of your financial future? “My experience with Questrade has exceeded my expectation and I am very pleased with the help that is provided when asked for.” Learn about how to make the most of the research tools available to you in each Questrade platform. “Questrade overall appears to be a well run organization and offer the latest technologies to make investing easy.”

Regulated by CIRO and CIPF member

Brokers like Questrade that allow investing in derivatives such as FX and CFDs are regulated by the Canadian Investment questrade fx Regulatory Organization (CIRO) and are required to follow it’s margin rules. This type of stop order is actually designed to protect the unrealized profit of an open position. You should note that the trailing stop will not activate until your open position has become profitable by a minimum number of pips specified by the trader when setting the order. The trailing stop order available on the Questrade platform will not trigger or afford any protection if the open position has not achieved the minimum defined profit.