{"id":819202,"date":"2019-11-28T11:48:33","date_gmt":"2019-11-28T16:48:33","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?page_id=819202"},"modified":"2026-04-14T22:31:01","modified_gmt":"2026-04-15T02:31:01","slug":"forex-trading","status":"publish","type":"page","link":"https:\/\/www.finder.com\/ca\/investments\/forex-trading","title":{"rendered":"Forex trading: A Guide for 2026"},"content":{"rendered":"

Forex trading is when you buy and sell foreign currencies to try to profit from the change in value of one currency against another. Also known as foreign exchange or FX trading, forex is the world\u2019s largest financial market. In this guide, we\u2019ll explore how forex trading works, its benefits and risks and how to choose a forex broker.<\/p>

What is forex trading?<\/h3>

There are many practical reasons why people exchange currencies, like when you\u2019re travelling internationally and you need to exchange your Canadian dollars for foreign currency, but a big percentage of global forex trading is done purely to make money.<\/p>

The aim of forex trading is simple: to profit from the change in value of one currency against another. Let\u2019s look at some key terms and concepts that explain how it works.<\/p>

What is forex?<\/h4>

Forex is short for foreign exchange. It refers to buying and selling global currencies, and forex trading is when you sell one currency to buy another.<\/p>

Currency values are constantly fluctuating relative to one another driven by factors like the strength of the economy, interest rates, inflation, supply and demand. Forex traders aim to profit from these fluctuations, and with daily trading volume of US$7.5 trillion as of 2022, forex is the world\u2019s largest financial market.<\/p>

What is a forex pair?<\/h4>

Forex is traded in currency pairs, such as CAD\/USD, EUR\/GBP and USD\/JPY. Each currency has its own three-letter code to make it easy to identify.<\/p>

Pairs show you how much of one currency it will cost you to purchase another\u2014so if you type \u201cCAD\/USD\u201d into Google, the first result might show you that 1 Canadian dollar = 0.70 US dollars.<\/p>

In any pair, the currency listed first is known as the base currency, and the currency listed after the slash is the quote currency. The price listed for a currency pair shows you how much of the quote currency you would need to buy one unit of the base currency. So if the EUR\/GBP price is listed as 0.84, you\u2019ll need 0.84 GBP to buy 1 euro.<\/p>


\"warning Disclaimer:<\/strong> General information only. All forms of investments (and in particular, trading CFDs, commodities and forex) carry significant risk, including the risk of losing more than the invested amounts, market volatility and liquidity risks. Past performance is no guarantee of future results. Such activities are not suitable for most investors.<\/div>
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Compare Canadian forex brokers<\/h3>
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1 of 1 result<\/span><\/small><\/div><\/div><\/div>
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\n Number of Currency Pairs\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Min. Spreads\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Commission Fees\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Account Fee\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th><\/tr><\/thead>\"Questrade<\/a>
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Questrade<\/a><\/span><\/div><\/td>
\n 110+\n <\/div><\/td>
\n From 0.8 pips under market conditions\n <\/div><\/td>
\n 1.50%\n <\/div><\/td>
\n $0\n <\/div><\/td>
Disclaimer: CFD Service. Your capital is at risk.<\/b><\/span>
\nTrade forex on international exchanges from your phone or desktop using the Questrade Global platform.\n <\/div><\/td>
Go to site<\/a><\/use><\/svg>View details<\/span><\/a>
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