Friedberg Direct Canada Review

By Baggio Ma | Published on 20 Aug 2023

the next generation of tranding platforms

Are you looking for a new online trading platform in Canada? Look no further than Friedberg Direct Canada, a one-stop shop for online forex trading and CFD trading. With a Friedberg Direct account, you get access to cutting-edge AvaTrade trading software with competitive fees and spreads. 

In this Friedberg Direct Canada review, we’ll discuss the platform’s features, pros and cons, and what sets it apart from other online forex & CFDs platforms. 

What is Friedberg Direct Canada?

Friedberg Direct Canada was established in 1971 and is based in Toronto, Ontario. It is a division of the Friedberg Mercantile Group Ltd. which is a broker-dealer that is a card-carrying member of both the IIROC and CIPF.

The primary focus for Friedberg Direct Canada is online forex trading. It is also one of the only Canadian brokerages that offer CFD trading. Friedberg Direct has partnered with two of the top forex platforms in the world: FXCM and AvaTrades. 

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Friedberg Direct Canada and FXCM Partnership

Friedberg Direct Canada is the registered broker, but it utilizes the technology of two other companies to allow Canadians to trade. One of these is FXCM, an Australian company that is a leading provider of Forex trading, CFD trading, and spread betting. FXCM was founded in 1999 and has partnered with brokerages around the world with its popular Trading Station trading platform. 

Friedberg Direct Canada and AvaTrades Partnership

AvaTrade is another technology partner that is offered by Friedberg Direct Canada. Like FXCM, AvaTrade is a world-renowned trading technology for both Forex and CFD trading. The company is from Dublin, Ireland but has regional offices all over the world. As of 2023, AvaTrade has over 400,000 global customers and a trading volume of over $70 billion every month. 

Friedberg Direct Canada Forex Trading

Friedberg Direct Canada is a unique online brokerage because it only offers two types of trading: Forex and CFD. The platform is well-known for its low-cost forex trading with over 50 different currency pairs. These include major, minor, and exotic forex pairs for both new and experienced forex traders. 

Opening a Forex trading account with Friedberg Direct is free and easy. New users will need to make an initial minimum deposit of $250 into their Friedberg account. Once you have opened an account you can access features like leverage trading on margin, competitive spreads, and 24-hour customer support representatives. 
Another great thing about Friedberg Direct is that it provides a large library of educational materials. Forex and CFD trading certainly have learning curves for new traders. With tutorials on everything from “how to trade forex” to “economic indicators” and “financial derivatives”. Friedberg Direct does a fantastic job of supporting its users and helping them get started in the world of Forex trading.

Frieberg Direct Canada CFD Trading

CFD or Contracts For Difference trading isn’t always a common way to trade. So what exactly is CFD trading? CFDs are financial derivatives that allow you to speculate on the direction of the price movement for the underlying asset. Friedberg Direct allows CFD trading for equities, ETFs, indices, commodities, and more.

You might be thinking that CFDs sound a lot like option contracts. Both are financial derivatives that allow traders to place a bet on the asset’s price direction. CFD contracts do not come with any expiration date, although they are usually meant to be short-term trades. Since there is no expiration date, the trade is in control of when they want to close out their trade. CFD trading is done with leverage in a margin account so be aware of the extra fees that accompany this type of account. 

Which Accounts Does Friedberg Direct Offer?

Friedberg Direct offers three different types of accounts for Canadian traders. Note that there is no cost to open an account with Friedberg Direct, but there are minimum funding requirements. Here are the three different types of Friedberg Direct accounts:

Demo Account

If you want to try out Friedberg Direct Canada without depositing any funds, you can sign up for a free demo account. This is a paper trading account and you cannot trade any real assets. 

Standard Account

This is the account that most traders will be signing up for. With the standard account, you will need to have an account balance of at least $5,000 to begin trading. 

Active Trader Account

As with most brokerages, the active trader account has lower fees and other benefits like more research tools and personal customer support. The minimum threshold for an active trader account is $25,000 plus a high volume of monthly trading between $50 million and $150 million for Tier 1 and $150 million to $500 million for Tier 2.

Requirements for Friedberg Direct Canada Account

When you sign up for a Friedberg Direct account you might be surprised that there are requirements you need to meet before you are approved. 

It should be noted that just because you do not meet the minimum requirements, it does not mean you will not be approved. Friedberg Direct Canada is one of the only brokerages in Canada that requires employment with a salary of at least $25,000 and more than $25,000 in personal savings. 

Of course, this also means providing Friedberg Direct with personal information and proof of employment. Friedberg Direct Canada requires new account applicants to provide a copy of their personal identification, proof of residence, and additional verification of a loan/mortgage or credit card statement. On top of all of this, Friedberg Direct requires you to sign and return a Client Acknowledgment form, a trusted person form, and a W-8BEN form for US tax laws. 

After filling out these forms and being approved for a Friedberg Direct account, you will need to make your cash deposit. Canadian traders can do this via credit card or debit card transfers or a bank wire transfer. Any of these transfers can be made in both Canadian and US dollars. 

Friedberg Direct Canada Fees

One of the most important aspects of any online brokerage is the trading fees to use the platform. In Canada, online brokerages are known for their high commission fees, especially when you trade with big banks. 

On Friedberg Direct, the fees are manageable, especially if you ever reach active trader status. For Forex trading, Friedberg Direct will charge the spread, which is the difference between the buy and sell price. The spread itself is measured in units called pips which represent the fourth digit in a Forex pairing’s price. As an example, if the EURUSD buy price is 1.1135 and the selling price is 1.1132, then the spread is 3 pips. 

The total amount you will pay for a Forex trade is the spread multiplied by the size of the position in the trade. Friedberg Direct Canada offers Forex traders a spread that is as low as 0.8 pips. 

The spread is also used in CFD trading, multiplied by the size of the position. For example, if you are trading CFD commodities contracts on barrels of oil. A spread of 5 pips multiplied by 5 barrels of oil will provide you with your total fees for the trade. 

There are additional fees with CFD trading which include contract rollover fees, CFD expiration costs, CFD overnight carryover costs, and of course, the interest paid for using a margin account. 

Friedberg Direct Canada Customer Support

One thing to consider when getting into Forex trading is that it is a 24-hour-per-day market. Foreign currencies will trade within the hours of each country’s trading sessions. Because of this, Friedberg Direct offers 24-hour customer support via email, web form, live chat, and even Whatsapp. 

Friedberg Direct only offers customer support six days per week between Sunday and Friday. Note that you will be talking to an AI chatbot to try and resolve your issues before being passed through to a human representative. 

Friedberg Direct Canada Trading Platforms

Friedberg Direct Canada offers multiple different trading platforms depending on your device and trading experience. For experienced traders, it is recommended to use the NinjaTrader platform or the FXCM Trading Station. For others, Friedberg Direct also offers the easy-to-use MetaTrader 4 platform. These trading platforms are available for use via mobile and desktop applications. 

Friedberg Direct Canada Regulatory Compliance

Friedberg Direct is fully compliant with all Canadian financial regulators, and the technology is in regulatory compliance around the world. Because of its affiliation with the Friedberg Mercantile Group, the platform is a member of CIPF the Canadian Investor Protection Fund, and is regulated by IIROC or the Investment Industry Regulatory Organization of Canada. 

The CIPF provides a nice insurance of up to $3 million for assets in a trader’s account. Luckily, Friedberg Direct keeps trader funds separate from its own funds, ensuring that there is no overlap or confusion. With any online brokerage, it is important to know how you are protected before ever depositing your hard-earned money to that site. 

Friedberg Direct’s Pros

Friedberg Direct Canada is fully regulated by the IIROC and is a member of the CIPF. Canadian traders know that their assets are protected and that Friedberg is abiding by all of Canada’s financial regulations. 

It is an intuitive platform to use with world-renowned trading technology included. This applies to both the desktop and mobile versions of Friedberg Direct.

Friedberg Direct charges low fees and commissions for both forex and CFD trading. 

The platform offers a lot of support and education for users including a full demo account to practice trading. 

Customer support is available in one form or another 24 hours per day six days per week. 

Friedberg Direct’s Cons

There are high minimum account balances and strict minimum requirements to be approved for an account. 

Friedberg Direct Canada only offers Forex and CFD trading.

Forex and CFD trading can be complicated, so it can take a while for traders to get accustomed to those markets. 

The fees can add up with CFD trading, especially since the trading is done in a margin account. 

The Bottom Line

Is Friedberg Direct Canada, right for you? Friedberg is a very well-respected brand in the Canadian finance industry and it abides by all of the regulations of IIROC. If there is one thing you can count on, it is that it is safe to trade using Friedberg Direct.

The platform itself is easy to use and very intuitive even for new traders. If you are feeling lost, there are plenty of tutorials and educational materials. You can also sign up for a demo account to practice before jumping into the real Forex markets. 

It is difficult to look past the high account balances and strict minimum requirements to get approved for an account. This makes it seem like Friedberg Direct Canada is only in favour of accepting institutional, or at least advanced traders. The high minimum deposit will likely be a barrier to entry for many Canadians. 

Aside from that, the fees and commissions are great and there is a wide selection of currency pairs and CFD assets. Friedberg Direct Canada is a great platform for Forex and CFD trading. Just do not be surprised if you do not get automatically approved for a new account. 

Baggio Ma has written for several Canadian websites on a variety of personal finance related topics. His knowledge is informed by his personal financial journey as an investor over the past 5 years. He invests using the online brokerage platform Wealthsimple, shops with one of the best credit cards in Canada, and keeps track of his credit score through Borrowell.