The Canadian dollar is the official currency in Canada, and is used by no other countries as their currency. The abbreviation for Canadian dollars is CAD and it is among the top 10 most traded currencies in the world, being number 7. Since the Canadian dollar is quite popular and respected in the world as a strong tradeable currency, many online trading brokerages accept Canadian dollars for depositing funds. The majority of Canadian dollars usage is within Canada, but there are instances where it is used for international transactions. These instances can be linked to online trading accounts that are located in countries other than Canada, but accept Canadian dollars as a viable currency for payment.show more
An important aspect to remember about making online payments is their meaning of the “$” symbol. In most cases the “$” symbol is used to symbolize American dollars (USD). However, this “$” symbol can be used to symbolize a variety of different currencies. For instance, the “$” symbol is also used for CAD dollars, AUD dollars, and so on. So, in the case of Canadian dollars, traders must see “CAD” along with the “$” symbol to ensure they are in fact accepting payments in Canadian dollars. It’s very important to keep this in mind so you know which currency you have selected or that is accepted on the online trading account you are using.
While the Canadian dollar is widely accepted by many online trading brokerages, there are some who only accept specific currencies such as USD, GBP, EUR, and so on. For brokerages who don’t accept Canadian dollars, it is still possible to exchange or convert your Canadian dollars into their supported currency. Some brokerages will have the conversion process built into their depositing interface. If this is the case, you can send your Canadian dollars to your online trading account and they will be exchanged to the brokerages supported currency at the current rate with a small fee attached. If the brokerage does not convert funds for you, there are various online exchange services where you can sell your currency to them and they will pay you in any which currency you need, for a small fee.
Canadian residents with Canadian bank accounts are blessed with a myriad of depositing and withdrawing options with online trading brokerages. Many of Canada’s banks are highly reputable with international banks used around the world. Traders with a Canadian bank account can deposit Canadian dollars to their trading accounts via debit and credit cards, e-wallets, and direct bank transfer services. The same can be used for withdrawals in most cases. Deposits are almost always instant, and withdrawals are quite fast as well, usually taking no longer than 24 hours. As for traders residing outside of Canada without a Canadian bank account, depositing Canadian funds is more difficult. Most deposit and withdrawal options for Canadian dollars are linked to Canadian bank accounts. However, traders can use e-wallet services or exchange their foreign dollars into Canadian dollars upon depositing with the online brokerage.