The advice that everyone is giving is very good: don't go into futures with a small account. Who cares that a particular broker will (with great cynicism) allow you to open an account with $400 or $500. They know you will probably lose it all, but it will generate some commissions in the meantime.
With a small account, you have no leeway to make mistakes, which are inevitable, and you have no cushion at all to live through trades -- or entire periods of time -- when the market does not go your way. You have to be nearly perfect, which you will not be.
Sad to say, beginners -- which at one time included everyone who has posted any advice to you here -- always convince themselves that none of that applies to them. It's as if they recognize that it may be true for other, experienced traders, but not for someone who is just starting out. (I did that too, and probably so has everyone else. But it ain't so. )
The suggestion to try micro-forex may be a good option for you, because the money involved can be very small, but at least it's actual money, not just SIM. The downside may be that, with pennies and dimes at stake, it may be close enough to play money to count about the same as SIM. I couldn't say, never having tried it. But it's something to look at, anyway.
There are lots of things you can try, just realize that none of them will be a path to quick or easy money. It's not impossible to make money in trading, but you have to work at it in a systematic, structured way. And it does take some time, to learn and to develop some skill. And it takes some starting money, no way to avoid that.
The following 4 users say Thank You to bobwest for this post:
Learn with lower leverage. There are a few Canadian discount brokerage options for you to trade ETFs or CFDs.
If you don't have an edge, trading futures is a quick way to dump your money. If you trade with less leverage, it gives you more time to develop your method and figure out what kind of person you are.
It makes no sense to start this journey with a futures account, especially as a Canadian resident.
For taxes in Canada, if you are successful in day trading, the CRA will conclude that you are carrying on a business and must pay income taxes on earnings, capital gains may not apply. See bulletin IT-479R.
The following 3 users say Thank You to stefan777 for this post:
Hey ron, so like with forex the leverage and margin thing is it different? You have to pay interest on the borrowed money? A lot of people said with futures, in simple terms, you don't have to pay any interest or anything, if a broker says you can open an account with 400, and lets say you buy 1 contract. you sell it and end up making profit of $50 ( 1 point), its only 450- commision and exchange fees.
is it the same here or you have to pay Profit - commissions- any interest or other fees (other than exchange related)?