Trading USD/CAD

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James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
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Jemma Grist
Jemma is a writer, editor and fact-checker focused on retail trading and investing. Jemma brings a unique perspective to the forex, stock, and cryptocurrency markets and works across several investment websites as a researcher and broker analyst.
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William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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The USD/CAD represents one of the most traded currency pairs in the world due to the large volume of cross-border trading between the US and Canada. The USD/CAD also belongs to the major forex group as it contains the influential US Dollar, while the Canadian Dollar is considered a commodity currency. Importantly, the pair offers rich volatility, liquidity, and tight spreads that attract online traders from all over.

Read on to learn about the history of the USD/CAD, its benefits and drawbacks, trading strategies and technical analysis, suitable investing times, and more. We also list the best brokers for trading USD/CAD below.

USD/CAD Trading Brokers

Here is a short summary of why we think each broker belongs in this top list:

  1. NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
  2. Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
  3. Plus500 US - Plus500 US offers futures trading on a small selection of 13 currencies, including popular pairs like the EUR/USD and GBP/USD. Day trading margins are competitive, starting from $40, while the educational resources do an excellent job of breaking down the basics of forex futures for new traders.
  4. FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
  5. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  6. Videforex - Videforex offers trading on 35 currency pairs through leveraged CFDs with spreads from 0.1 pips. Alternatively, traders can use binaries to speculate on upward/downward price movements with payouts up to 98%. Integrated technical analysis, economic calendars, and market news, all available within the platform, help support FX trading decisions.

Trading USD/CAD Comparison

Trading USD/CAD Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator
NinjaTrader 50+ 1.3 3.5 / 5 $0 NFA, CFTC
Interactive Brokers 100+ 0.08-0.20 bps x trade value 4.3 / 5 $0 FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
Plus500 US 13 0.75 4.3 / 5 $100 CFTC, NFA
FOREX.com 80+ 1.2 4.9 / 5 $100 NFA, CFTC
OANDA US 65+ 1.6 4 / 5 $0 NFA, CFTC
Videforex 35+ 0.1 2.5 / 5 $250 -

NinjaTrader

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

Tobias Robinson Tobias Robinson, Reviewer

NinjaTrader Quick Facts

GBPUSD Spread1.6
EURUSD Spread1.3
EURGBP Spread1.6
Total Assets50+
Leverage1:50
PlatformsNinjaTrader Desktop, Web & Mobile, eSignal
Account CurrenciesUSD

Pros

  • Traders can get free platform access and trade simulation capabilities in the unlimited demo
  • You can get thousands of add-ons and applications from developers in 150+ countries
  • NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC

Cons

  • There is a withdrawal fee on some funding methods
  • Non forex and futures trading requires signing up with partner brokers
  • The premium platform tools come with an extra charge

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris Christian Harris, Reviewer

Interactive Brokers Quick Facts

GBPUSD Spread0.08-0.20 bps x trade value
EURUSD Spread0.08-0.20 bps x trade value
EURGBP Spread0.08-0.20 bps x trade value
Total Assets100+
Leverage1:50
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
  • The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.

Cons

  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.

Plus500 US

"Plus500 US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills."

Michael MacKenzie Michael MacKenzie, Reviewer

Plus500 US Quick Facts

Bonus OfferWelcome Deposit Bonus up to $200
EURUSD Spread0.75
Total Assets13
PlatformsWebTrader, App
Account CurrenciesUSD

Pros

  • The Futures Academy is an excellent resource for new traders with engaging videos and easy-to-follow articles, while the unlimited demo account is great for testing strategies
  • The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader
  • Plus500 US excels for its low fees with very competitive day trading margins and no inactivity fees, live data fees, routing fees, or platform fees

Cons

  • While Plus500 US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks
  • The proprietary platform is user-friendly but lacks advanced technical analysis tools found in third-party solutions like MetaTrader 4
  • Despite competitive pricing, Plus500 US lacks a discount program for high-volume day traders, a scheme found at brokers like Interactive Brokers

FOREX.com

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

Christian Harris Christian Harris, Reviewer

FOREX.com Quick Facts

Bonus OfferActive Trader Program With A 15% Reduction In Costs
GBPUSD Spread1.3
EURUSD Spread1.2
EURGBP Spread1.4
Total Assets80+
Leverage1:50
PlatformsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN

Pros

  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
  • The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
  • With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.

Cons

  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.

OANDA US

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

Jemma Grist Jemma Grist, Reviewer

OANDA US Quick Facts

GBPUSD Spread3.4
EURUSD Spread1.6
EURGBP Spread1.7
Total Assets65+
Leverage1:50
PlatformsOANDA Trade, MT4, TradingView, AutoChartist
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

Pros

  • The broker offers a transparent pricing structure with no hidden charges
  • There's a strong selection of 68 currency pairs for dedicated short-term forex traders
  • Beginners can get started easily with $0 minimum initial deposit

Cons

  • It's a shame that customer support is not available on weekends
  • There's only a small range of payment methods available, with no e-wallets supported
  • The range of day trading markets is limited to forex and cryptos only

Videforex

"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "

William Berg William Berg, Reviewer

Videforex Quick Facts

Bonus Offer20% to 200% Deposit Bonus
GBPUSD Spread0.1
EURUSD Spread0.1
EURGBP Spread0.1
Total Assets35+
Leverage1:500
PlatformsTradingView
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
  • Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.
  • Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, bringing it in line with competitors like IQCent.

Cons

  • Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
  • The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
  • The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.

Why Trade USDCAD?

The USD/CAD currency pair is the fifth most traded forex pair in the world. With that in mind, it’s probably no surprise that it’s often highlighted on popular trading platforms and exchanges. But why should you invest in USD/CAD?

Drawbacks

Live Chart

Influences On Movement

There is a multitude of factors to consider in the USD/CAD relationship. However, the following are key to influencing the currency pair’s conversion rate:

United States Influence

List of best USD/CAD trading brokers

Canadian Influence

How to trade the USD/CAD

Currency Correlations

What may not be clear when trading on your USD/CAD live chart is the effect of currency correlations. No single pair trades completely independent of other currencies. These relationships varying by dates are known as positive and negative correlations:

Application

A USD/CAD trader can use this information to better understand the consequences of movement in certain pairs. But it is important to note that correlations do not always remain stable. For example, USD/CAD had a strong positive correlation with a coefficient of 0.95. However, the relationship deteriorated down to 0.28. Many factors can affect this, such as economic impacts or decisions made by the Fed or BoC.

USD/CAD Trading Strategy

To trade USD/CAD effectively, it takes more than just analyzing signals and keeping up with the latest news and pre-market sentiment. It also takes more than using pip values to your advantage. Below are some useful options and considerations.

Timing

When day trading in the forex space, timing is everything. FX trading may be available 24/7, but it doesn’t mean you should buy and sell all day. Instead, you want to trade when the USD/CAD pair is active, with plenty of volume and volatility. The danger is if you trade at the wrong times, the cost of spreads and commissions can cancel out profits.

Trading sessions in Canada and the US coincide, which means longer trading sessions, but it can also mean more profit. Of course, higher trading volumes also make USD/CAD a lot riskier to trade with.

Ideal Window

So, when is the best time to day trade USD/CAD? The ideal time is arguably from 08:00 to 17:00 EST, which is the entire North American trading session. During this nine-hour window, trading volumes are at their peak, and you have better leverage.

Interestingly, the pair also sees its greatest daily volatility on a Friday, which can be due to traders adjusting positions ahead of the weekend. Spreads are normally tightest during this window, which can result in the greatest opportunities to generate profits. During this window, forex forums are also active.

All these factors can result in the biggest profit potential. Therefore, you should make sure to check for intraday volatility and invest your trading capital during this time slot.

Buying & Selling USD/CAD

The USD/CAD has a tendency to make solid moves promptly, which follows a considerable period for consolidation. So, live charts and technical analysis will often be needed to succeed in trading this FX pair.

Trading the USD/CAD can be based on some simple technical strategies. For example, you can trade based on bounces from trend lines or support and resistance levels. This steady strategy can supply many small profits over a period of time. On the other hand, traders can opt for a more aggressive strategy that delivers large profits in a short period. This involves watching out for inevitable breakout moves from the pair.

The most intense trading sessions occur at the release of economic reports such as non-farm payrolls, unemployment rates, economic sentiment, manufacturing, and non-manufacturing activity growth. Thus, trading during these events without the help of technical analysis can be done using a proactive, a reactive, or a mixed strategy. Proactive trading involves entering a position ahead of the release of today’s data, for example, and basing your decision on forecasts. A reactive approach involves entering the market after the data is published. Finally, a mixed approach combines the two.

News

The latest market news updates on the USD/CAD currency pair can quickly impact market sentiment and create price shifts. You can capitalize on the right moments, but only if you understand how the markets reacted historically.

Since this pair is significantly affected by the oil sector, you should be aware of OPEC meetings that involve oil-selling countries like Canada and the USA. These deliberations can help you forecast which currency will have bigger demand in the future. You should also keep an eye on the decisions made by the Fed and BoC. As mentioned before, these two banks make important decisions on interest rates and monetary policy, which have a large effect on the value of the USD and CAD.

Make sure to keep on top of the latest news updates, along with daily, weekly and monthly forecasts. Utilize technical analysis on live charts, the latest spot exchange rate, plus forecasts and forums. The following are some popular resources:

History

Before you start live chart investing, it is helpful to have an understanding of the USD/CAD history:

Early History

The US Dollar was created during The Coinage Act of 1792, when the United States Congress appointed it as the country’s currency. Paper banknotes were introduced into circulation in the mid-1800s. In 1913, the Federal Reserve Act created the central bank of the US. The USD is still regarded as the world’s unofficial reserve currency after the introduction of the Bretton Woods monetary system in 1944.

On the other hand, in the early 1850s, Canada departed from the colonial pound sterling and shifted to the Canadian Dollar. Until 1970, the CAD was attached to the USD, but it is currently a free-floating currency controlled by the Bank of Canada. It’s also nicknamed as the ‘loonie’, derived from the loon bird that appears on Canadian Dollar coins.

Recent History

Historical exchange rates of the USD/CAD were affected by key events. The Canadian Dollar reached parity with the US Dollar on September 20, 2007. It had been the first time in close to 31 years. Other points of USD/CAD parity were after the Great Recession when the Federal Reserve had subsequent quantitive easing. The Canadian and US Dollar eventually reached a parity of 0.95.

In fact, most instances of parity were related to periods of financial difficulty in the US or during high oil prices. For example, in 2016, the price of oil slumped to a low, trading at less than $30 per barrel. During this time, the Canadian Dollar hit a record low of 1.46 CDN to the USD.

The US to CAD FX rate between 2008 to 2018 has been anywhere between 0.94 and 1.46. The two have been relatively close in value over the decade. From 2011 to 2012, the CAD was worth more than the USD. This was when the USD/CAD exchange rate briefly dipped below 1.00. Since then, the US Dollar has shown a steady increase in value against the Canadian Dollar, particularly in mid-2015. The US Dollar was also in a general uptrend against most other major currencies during this time.

Note, the USD/CAD reached an all-time high of 1.62 in January of 2002; and an all-time low of 0.92 in November 2007.

Role Of The USD

After understanding key events in the USD/CAD timeline, it is important to grasp the role of the US Dollar to make future rate predictions.

The United States is the world’s largest economic power, representing almost 25% of the global nominal GDP. The country’s economy is primarily service-oriented, with 80% of its GDP coming from sectors like real estate, transportation, and financial services. Since the USD is the most traded currency in the world, it is affected by many factors. As already mentioned, key influences include the various reports issued by the Fed.

Other major economic indicators are:

Role Of The CAD

While you might focus your attention on the strength and role of the USD, it is equally useful to consider the role the CAD plays too.

Canada is the fourteenth biggest economy in the world. It closely resembles the United States with its market-oriented economic system, types of production, and high standard of living. Canada’s economy is typically known as a resource-based economy, as it mainly relies on the export of its natural resources such as wood, grain, minerals, and petroleum. Nonetheless, more than two-thirds of its GDP comes from its service sector.

Other major economic indicators are:

Importantly, the 1989 Free Trade Agreement between Canada and the US removed the majority of trading tariffs between the countries. The Bank of Canada is also a major influence on the Canadian Dollar as it enacts policies that promote economic and employment growth. Daily, weekly, monthly, and annual exchange rate charts are available on the BoC website.

Final Word On Trading USD/CAD

The USD/CAD currency pair promises volume, volatility, and tight spreads, which provide plenty of opportunity to yield profits. However, there are many factors to consider, like economic data releases, central bank statements, and the latest market news.

You must be ready to conduct your own expert analysis, utilize interactive daily, weekly and historical charts, trends, and news resources. Make sure to maximize the quality of your trades in the ideal window when the pair is most liquid. You can also invest via trusted OTC brokers such as Pepperstone and Oanda. If you follow the guidelines outlined on this page, you too can go in search of those rich forex profits.

FAQs

When Is The Best Time To Trade USD/CAD?

The USD/CAD market hours align with the North American trading session between 08:00 and 17:00 EST. This is when the FX pair is most liquid and volatile. Invest your trading capital during these times to improve the quality of trades.

How Much Is 1 USD In CAD?

The USD to CAD exchange rate is always shifting. See a live chart for the latest rate between the two popular currencies.

Is The USD Stronger Than The CAD?

The historical exchange rate of the two is always fluctuating, with both currencies being stronger than the other across various points. However, in the last few years, the US Dollar has maintained a superior position to that of the Canadian Dollar.

Can I E-Transfer USD To CAD?

There are many services available today that allow you to e-transfer USD to CAD and vice versa. For example, TD provides competitive exchange rates and ensures your transactions are processed safely and securely.

Should I Trade With USD/CAD?

When done effectively, the profit potential can be fruitful. This is because USD/CAD provides high volumes and tight spreads. It also features two key currencies, with the US Dollar being the world’s top reserve currency. Investors can make use of simple strategies like trading based on bounces from trend lines or from support and resistance levels. Alternatively, you can opt for more aggressive strategies that deliver large profits in a short space of time. A proactive, reactive, or mixed approach to the news can also prove prosperous during major economic releases.