The forex market operates 24 hours a day, 5 days a week, but trading sessions are broken up into different time zones. Forex trading hours in Canada depend on which global trading session the trader wants to participate in. Here is an overview of the major forex trading sessions and what hours they cover in Canada.
Major Trading Sessions
There are four major forex trading sessions in the world that run in an overlapping cycle throughout the week. The main sessions are as follows:
Sydney Session
The Sydney trading session opens at 5:00 PM EST and runs until 2:00 AM EST. This session covers trading in the Asian markets like Japan, China, Australia and New Zealand. For Canadian forex traders, the Sydney session takes place during the late evening hours.
Tokyo Session
The Tokyo session starts at 7:00 PM EST and closes at 4:00 AM EST. This session covers Asian economic markets like Japan. For Canadians, it takes place during the late evening through very early morning hours.
London Session
The London session starts at 3:00 AM EST and runs until 12:00 PM EST. This session covers European markets like the UK, Germany and France. For Canadian traders, it takes place during the early morning through late morning hours.
New York Session
The New York trading session starts at 8:00 AM EST and closes at 5:00 PM EST. This session has the highest trading volume and covers North American markets like the United States and Canada. It takes place during standard business hours for Canadians.
See more: How much can you make with Forex
Trading in Canadian Time Zones
Canada spans across six time zones. Here is how the major forex trading sessions line up in the main Canadian time zones:
Newfoundland Time Zone (NT)
Atlantic Time Zone (AT)
Eastern Time Zone (ET)
Central Time Zone (CT)
Mountain Time Zone (MT)
Pacific Time Zone (PT)
As you can see, the forex trading hours in Canada vary depending on which time zone the trader is located in. The best trading times tend to be when the sessions overlap.
See more: The best forex broker in Canada
Best Trading Times for Canadians
While the forex market is open 24 hours a day from Monday to Friday, the best time to trade for Canadian traders is when the London and New York sessions overlap. This is between 8:00 AM - 12:00 PM EST.
During this period, trading volume is the highest, volatility spikes, and spreads are tighter. There is more liquidity in the market which leads to better trade execution. Prices are also liable to trend more strongly during this active period.
Outside of the London-New York overlap, the next best times to trade are when London opens at 3:00 AM EST and when New York opens at 8:00 AM EST. Volatility tends to rise around market openings.
See more: Is forex trading a good idea
Slowest trading times tend to be between 1:00 PM - 4:00 PM EST when the London session is ending and before New York opens. Spreads also tend to be higher during this time. Late Friday trading after the New York close at 5:00 PM EST is also thin.
So in summary, the optimal times for Canadians to trade forex are:
Pay attention to the session overlaps and avoid illiquid periods like early afternoons and late on Fridays.
Impact of Holidays and News Events
Trading hours can also be impacted during major Canadian and U.S. holidays when the markets are closed. Some of these include Christmas, Boxing Day, New Year's Day, Good Friday, Victoria Day, Canada Day, Labor Day, and Thanksgiving Day.
Around high impact news events like interest rate decisions, nonfarm payroll data, and GDP numbers, volatility tends to spike but liquidity can drop off. Prices whipsaw around as the market digests the news which can create opportunities but also risk if timed poorly.
It's important for traders to be aware of the forex trading hours in Canada, liquidity dynamics, and upcoming news or holidays that may impact market activity. This knowledge allows traders to plan sessions and manage risk accordingly.
Frequently Asked Questions
What time zone is best for forex trading in Canada?
The Eastern Time Zone is best for Canadian forex traders since it allows participation during the volatile London/New York overlap from 8 AM to 12 PM EST. This is when volume and liquidity peaks.
When does forex trading open on Sunday in Canada?
The forex market opens every Sunday at 5:00 PM EST when the Sydney session starts. There is limited activity until the Asian markets open starting at 7:00 PM EST.
What are the slowest forex trading times in Canada?
The slowest times tend to be from 1:00 PM to 4:00 PM EST when the London session ends but before New York opens. Liquidity and volatility drop off during this period.
Is forex trading 24 hours in Canada?
The forex market is open 24 hours from Monday to Friday for Canadian traders. However, trading volumes and liquidity fluctuate significantly depending on the global trading session.
Are forex trading hours the same as stock trading hours?
No, the forex market remains open 24/5, while the stock exchange like the TSX has more limited trading hours from 9:30 AM to 4:00 PM EST during weekdays.
Conclusion
Canadian forex traders have access to a 24 hour market from Monday to Friday. The best trading hours tend to be when the London and New York sessions overlap from 8:00 AM to 12:00 PM EST. Slowest times are typically between 1:00 PM and 4:00 PM EST.
It's important for traders to understand the session times for Eastern, Central, Mountain, Pacific, Newfoundland, and Atlantic time zones in Canada. Watching the London and New York opens for volatility is also advised. Being aware of holidays and news events that may impact liquidity is crucial. Monitoring these dynamics allows Canadian traders to maximize opportunities.
Risk disclosure: Information on the Page is for informational purposes only and does not constitute any motive or suggestion to visitors to invest money. Moreover, we hereby warn you that trading on the Forex and CFD markets is always a high risk. According to the statistics, 75-89% of customers lose the funds invested and only 11-25% of traders earn a profit.
Disclaimer: Page shall not be liable for the consequences of trading decisions made by the Client and for the possible loss of his capital resulting from the use of this website and information published on it. Page does not provide any financial services, including investment or financial advisory services. Also, the Page is not a broker and does not get money for trading in the Forex or CFD markets. Our Page only provides information on brokers and the markets and helps its users to select the best brokerage company based on detailed information and objective analysis of brokers.
