Best 8 Brokers for Trading CAD/JPY
Forex is short for ‘foreign exchange’, the process of changing one currency into another for one’s own financial benefit.
Forex markets can be the largest and most fluid in the world, with currencies exchanged against each other as exchange-rate pairs.
Forex is the largest trading market, trading 24 hours a day, five days a week.
A forex currency pairing includes a base currency and a secondary currency.
Usually, the base currency is the trader’s domestic currency.
The price of a forex currency pair is an expression of how much of the quote currency is needed to buy one unit of the base currency. For example, ‘USD/GBP 1.25’ indicates that £1.25 is needed to buy one US dollar.
For the purposes of CAD/JPY, we would be looking at how many Japanese yen are needed to buy one Canadian dollar.
A list of the Top Brokers for Trading CAD/JPY
Description of the Brokers for Trading CAD/JPY
While there are many companies out there that could act as your broker, for CAD/JPY trading there are five that stand out:
Pepperstone
Pros:
Extensively regulated
No minimum deposit
Low fees and mostly free withdrawals
Good customer service
Cons:
No investor protection for clients outside UK, EU and EEA
Withdrawal fee for clients outside EU and Australia
CFDs only
Pepperstone is a highly regarded broker for trading forex pairs, including CAD/JPY, due to its comprehensive features, competitive trading conditions, and robust platform offerings.
Pepperstone offers some of the tightest spreads in the industry, which is crucial for trading pairs like CAD/JPY that can exhibit significant volatility. The Razor account, in particular, provides spreads starting from 0.0 pips with low commissions. This cost-effective trading structure is beneficial for traders looking to maximize their profit margins.
Pepperstone provides leverage up to 1:500 for professional traders, allowing for greater market exposure with a smaller initial investment. Retail traders have access to leverage up to 1:30, which is in line with regulatory standards to ensure responsible trading.
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms are widely used by forex traders for their advanced charting tools, a broad range of technical indicators, and support for automated trading via Expert Advisors (EAs). Both MT4 and MT5 are well-suited for analyzing and trading the CAD/JPY pair due to their robust functionalities and user-friendly interfaces.
cTrader is another powerful platform available through Pepperstone, known for its intuitive design and advanced features such as detailed charting tools, advanced order types, and algorithmic trading capabilities through cTrader Automate (formerly cAlgo). These features are beneficial for traders who employ sophisticated strategies for trading CAD/JPY.
Pepperstone’s integration with TradingView provides enhanced charting capabilities and access to a large social trading community. This is particularly useful for traders looking to leverage crowd-sourced insights and advanced technical analysis tools when trading the CAD/JPY pair.
Pepperstone provides several risk management tools, including stop-loss and take-profit orders, to help traders manage their positions effectively. Negative balance protection is also available, ensuring that traders do not lose more money than they have deposited, which is crucial for trading volatile pairs like CAD/JPY.
Pepperstone offers a wealth of educational resources, including webinars, tutorials, market analysis, and trading guides. These resources are particularly useful for traders looking to understand the dynamics of trading the CAD/JPY pair and improve their overall trading skills.
75.2% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
eToro
Below content does not apply to US users.
Pros:
Regulated by FCA, MiFID, ASIC
No withdrawal fee for US clients
0% commission on stocks
Social and copy trading
Cons:
Not available in every US state
More expensive than most of its competitors
No MetaTrader platforms
Founded in 2007, eToro is considered a very low-risk broker as it is highly regulated by the Financial Conduct Authority (FCA) in the UK and many other regulatory bodies elsewhere.
Opening an account is free and you can access a $100,000 demo account to test the system.
It offers 47 currency pairs for trading. Spreads for forex trading have recently been significantly reduced and range from a very competitive 1 to 3 pips for major currency pairs.
Typical spreads for EURUSD and USDJPY trades, for example, are just 1 pip. EURAUD sitting at around 7 pips.
You can see the full list of spreads on the eToro website.
You’ll need to deposit a minimum of $200 for Copy Trading, eToro's standout feature which allows you to follow other traders and copy their trades.
This forex broker is great for beginners due to its user-friendly interface and app and 24-hour customer support. It allows you to trade currencies, stocks and cryptocurrencies in one portfolio and the Copy Trading system is a great way to learn.
The company also offers trading courses and features a Learning Lab which houses a variety of tools to support clients with their trading experience.
76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
AvaTrade
Pros:
Worldwide regulated
Multiple platforms – MT4, MT5, etc.
Negative balance protection
20% welcome bonus
Educational content
Wide rage of payments methods
Fixed spreads
Cons:
You can’t buy stocks
Quarterly and annual inactivity fees
Customer support is not available 24/7
No bonus for EU based clients
No US clients accepted
Imitated crypto assets
AvaTrade is a CFD Regulated broker with +1,000 financial instruments and multiple trading platforms. It has been operating since 2006.
It offers a 20% welcome bonus up to $10,000, according to regulation and a free 21-day demo account with $100,000.
Instruments include:
Metals
Commodities
Stocks
FX Options
Oil
ETFs
Options
Crypto currencies
CFDs
Indexes
Shares
Spread betting
Indices
Forex
Bonds
AVATrade EU Ltd is regulated by the Central Bank of Ireland. (No.C53877)
Ava Trade Markets Ltd. is regulated by the B.V.I Financial Services Commission. It is also highly regulated in Australia, South Africa, Japan, Middle East, Cyprus and Israel
You can not trade with AvaTrade in the US, North Korea, New Zealand, Iran or Belgium.
Mínimum deposit of $100, no withdraw limit and no fees.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XTB
Pros:
Regulated by the FCA
Low forex fees
Fast withdrawal and deposit with no fee
Live chat customer service
Cons:
No US clients
Limited product portfolio
High fees for stock CFDs
XTB is a global CFD and forex broker that operates out of both London and Warsaw.
It is regulated by the UK Financial Conduct Authority and is also listed on the Warsaw Stock Exchange, so it is required to disclose its financials.
XTB is considered safe because it has a long track record, is listed on a stock exchange, and publishes its financial statements transparently.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
IG
Pros:
Highly regulated
MetaTrader 4 (MT4)
Over 10,000 instruments
Available in the UK and US
24/7 customer support
Cons:
High fees
No deposit compensation scheme for US accounts
No copy trading
Inactivity fees
IG is a great share trading platform for beginners thanks to its user-friendly interface and extensive educational resources.
Pros of IG include a wide range of trading instruments and markets, as well as the ability to access multiple account types and trading platforms. The platform also offers a demo account for beginners to practise trading strategies before investing real money.
However, IG isn’t the cheapest share trading platform, with relatively high trading fees and a minimum deposit requirement of £250 when paying by credit/debit card or PayPal.
In terms of additional fees, IG charges a commission fee for share trading, starting from £8 per trade. There’s also a custody fee of 0.25% per year for holdings of £250 or more.
Overall, IG is a solid choice for beginners looking for a user-friendly platform with extensive educational resources, but investors should be aware of its fees and minimum deposit requirements.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of IG retail investor accounts lose money when trading spread bets and CFDs with IG. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
ActivTrades
Pros:
No minimum first-time deposit
Optimal trading execution
More than 1,000 CFDs
State-of-the-art trading infrastructure
Customer support on 14 languages via email, chat and telephone
Cons:
No copy trading
Not available for US clients
No bonus for EU based clients
ActivTrades is a traditional CFD broker and has been trading for more than 20 years on 140 markets. ActivTrades is authorized and regulated by the FCA, CSSF and SCB.
Its strong points include:
No minimum first-time deposit
No commissions
Several payment methods for deposits and withdrawals
Tight spreads from 0.5 pips
It offers one of the best execution speeds in the industry with low latency below 0.004s.
It utilizes the most advanced technology to improve users' trading efficiency – users can automate trades, build integrations and create trading apps using ActivTrades' market-leading CFD and spread betting technology.
Exceptional trading infrastructure is available on ActivTrader and MetaTrader 4 and 5.
ActivTrades invests deeply in specially developed educational materials for its clients – including webinars, regular outlooks, manuals, etc.
Type of offers: ActivTrades focuses on well-developed products in its trading portfolio. Customers can choose from over 1,000 CFD or spread betting instruments across forex, indices, shares, commodities, financials and ETFs.
It also offers investing solutions for its institutional partners.
Spread betting allows UK residents ONLY to trade the prices of financial instruments, including forex, indices, commodities and LSE shares.
Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread betting and CFDs work and whether you can afford to take the high risk of losing your money.
Axi
Pros:
Low forex fees and no inactivity fee
Account opening is fully digital
No withdrawal or deposit fees
Cons:
Only forex and CFD trading on offer
Customer service only five days a week
Limited research tools
Axi is an Australian forex broker.
It is regulated by several financial institutions including the UK Financial Conduct Authority, the Dubai Financial Services Authority, and the Australian Securities and Investments Commission.
CFDs are complex instructions and come with a high risk of losing money rapidy due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XM Group
Pros:
Regulated by ASIC, CySEC and IFSC
Low stock CFD fees and deposit
No or small withdrawal fee
Good customer service and customizability
Cons:
Limited products
No investor protection for non-EU users
PayPal transactions not supported
Inactivity fee
XM is an online broker regulated by the Australian Securities and Investments Commission, the Cyprus Securities and Exchange Commission, and the International Financial Services Commission of Belize.
CFDs are complex instructions and come with a high risk of losing money rapidy due to leverage. 72.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What Is CAD/JPY?
As previously mentioned, forex trading is based on pairs of currency.
CAD – the Canadian dollar, the currency used in Canada.
JPY – the Japanese yen, the currency used in Japan.
Is CAD/JPY a Major Pair or Minor Pair?
Forex trading pairs can be categorized into three groupings for trading purposes:
Major pairs – Pairs that are traded frequently. They will always contain the USD, and because of their high fluidity, there will always be a chance to use them as part of a trade. However, because they are frequently traded, the market can be busy and competitive.
Minor pairs – Pairs that do not involve the US dollar as a base or a secondary currency. They may also be known as ‘cross-currency pairs’.
Exotic pairs – Pairing of a major currency and an emerging currency such as the South African rand.
CAD/JPY is a minor pair as it does not include the US dollar.
What to Consider When Trading CAD/JPY
When trading CAD/JPY, it is important to note that while CAD is in positive interest (1%), JPY is negative at (-0.1%). If you trade smartly, you can be in for a higher return.
Whatever the CAD/JPY market is doing can often be seen as a strong indication of what the USD/JPY market may do, although the CAD/JPY market is generally more sensitive to changes, with a higher yield attached to the Canadian dollar.
The exchange of CAD/JPY is also dependent on the price of crude oil.
Japan is very dependent on oil, being the world’s third-largest importer. If oil prices rise, more Japanese yen must be sold to purchase Canadian dollars.
When trading any currency, it is important to note what the trading trends are.
Check to see how it has fluctuated, if it has at all. You want to note when your currencies are high and when they are low.
When trading CAD/JPY, it is better to place your entry point above the highest high and below the lowest low.
How to Choose the Right Broker
Choosing the right broker for your trades can be essential to your success.
You may find a broker that is well known in regard to your specific currency pair, but there are still several things you need to check:
Credibility
A good broker should be able to provide testimonials from previous clients.
They should also be a member of a regulatory body.
In the US, these are National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC). This way, you know they are being monitored.
Customer Care
You want a broker who is going to take care of you after the initial sale.
You may have follow-up questions, require some help with your account or want to make another transaction.
These are all things a broker should be ready and willing to help with.
Trading Platform
Most trading with your broker will happen through its trading platform. Check what platform it uses and that it is something you can comfortably use.
Trades can be very time-sensitive, especially when trading across different time zones, so you will need to have access to the platform as often as possible.
Does the broker provide a mobile app for you to trade when not at home?
You will want to check if your broker is trading via a trading expert or is completely self-managed.
Transaction Costs
Fees are a necessary part of any transaction. Before you enter a trade, check what fees you will be paying for the spread or commission.
Be careful not to sacrifice security for lower costs, though. A good broker should have reasonable prices.
The Trade
When you want to buy, your broker should be moving quickly enough for you to get the price you want.
When you click ‘Buy’, your order should be processed immediately, otherwise the price could have changed.
Final Thoughts
To find the best forex trader for CAD/JPY, you need to consider the fees you are willing to incur, how much time you want to spend working on your investment, what kind of trading platform the broker uses and its track record of success.
Although we have listed five of the best brokers for trading CAD/JPY, it is important to do your own due diligence and find the best match for your needs.
Look at a range of forex platforms and note how they perform with both major and minor pairs. Also, note how user-friendly they are.
If you are new to trading, you want a platform that is not going to take a lot of effort to learn how to use.
Any broker you go with should be heavily regulated. This ensures that you will not incur big losses if they have the right risk-management software in place.
Because Canada and Japan are in different time zones, you may want to check for a platform that is more automated as you are not going to always be available to make your trades at the right times.
Finally, ask around. Sometimes word of mouth from someone who has used a particular broker can be extremely helpful in answering any questions you may have.