Questrade

The Company. Security of Funds

Established in 1999, Questrade is Canada’s biggest independent online brokerage, offering clients from both institutions and private customers can buy and sell CFDs, Forex and stock, precious metals ETFs, options, mutual bonds, funds and GICs.

Canada is not a well-known brokering destination for forex traders and among the main reasons behind this is the fact that Canadian residents aren’t required to use brokers licensed by the national government exclusively (like US ones).

In contrast to those in US, Canada does not restrict leverage, prohibit hedges, or use the FIFO principle (firs-in-first-out). The province in which they register their registration, brokers registered in Canada could be required to follow different regulations.

Questrade, Inc., operating under the name Questrade is controlled under Questrade, Inc. is regulated by the Investment Industry Regulatory Organization of Canada (IIROC) which is the organization that licenses all investment dealers and supervises the trading activities on equity and debt markets in Canada. The national self-regulatory institution creates high-quality, high-quality investment and regulatory industry standards, safeguards investors and improves the integrity of markets as it ensures the efficiency and competitiveness of capital markets.

One of the most significant benefits of trading with one of the biggest advantages of trading with a Canadian foreign broker can be that they are members of the Canadian Investor Protection Fund (CIPF) that insures each trader’s account to the value of $1 million against losses caused by the insolvency of a broker. Questrade is, of course, is also an official part of CIPF.

Trading Conditions

Minimum Initial Deposit

To establish an account with Questrade traders must put down a minimum amount of $1000. This is quite excessive for the forex market but when you have a broker that is regulated by the government of Canada it’s worth it because your funds are secure. Another brokerage that is licensed by Canada, Forex.com will accept just $50 from customers to begin.

Spreads & Commissions

Questrade’s only forex trading account has spreads that are variable, beginning at 1.7 pip on USD/EUR which is higher than the standard for trading on the foreign exchange market. Many brokerages provide flexible spreads between 1.0 to 1.5 pip for this pair.

For purposes for comparison, Forex.com provides the typical spread of 1.8 pip on USD/EUR for its commission-free accounts. For more details it is possible to find the real-time spreads for the top 15 brokerages here.

Leverage

In relation to forex, the broker provides leverage, however unlike other brokerages in which margin or leverage are fixed Questrade has a distinct margin requirement for different instruments of trading.

The maximum leverage offered by Questrade is only 1:33 although a handful of brokers offer leverage that is equal to or greater than 1:500. In contrast, Forex.com offers leverage of up to 1:200 (or 1:50 for US customers as the leverage limit in the US is limited by the law).

Trading Platforms

Questrade gives its customers the option of a variety of trading platforms. These include the renowned MetaTrader 4 and its own online QuestradeFX along with QuestradeFX Pro – an in-house, customizable desktop platform.

QuestradeFX provides more than 30 major currencies . It includes one-click deal with real-time pricing, an efficient order entry screen , and live reports that are available seven every day, all day, every day.

The desktop QuestradeFX Pro platform lets users customize the layout and charting to match a particular market, place stop and limit orders according to rate, pips or P&L as well as test the full suite of tools for reporting, etc.

The QuestradeFX Pro platform. Click to expand.

Questrade also supports MetaTrader 4 version that comes with real-time data, tools for technical analysis and an EA-optimized platform that can be customized, or bought off the shelf automated strategies.

Methods of Payment

Questrade provides the following withdrawal and deposit options including electronic bank transfer (bank wire), paper cheques, and electronic funds transfers.

Conclusion

Questrade is a trusted Canadian broker that allows trading on a broad range of assets. While its spreads aren’t some of the most slender in the market and its maximum leverage available is only 1:33, we would recommend Questrade because it stands out for its the security and safety of funds.