Canada is a country which is bilingual, divided into the French-speaking Quebec region and the Anglophone area. Top 3 Canadian Binary Options Brokers: The main issue in Canada with regards to binary options regulation is that the provincial governments seem to be dancing to a different tune from the Federal government. While the three provincial regulators have a view point on binary options trading, the Federal regulator seems to be apathetic to the issue.
So the question is: To get a perspective on this issue, let us look at what the provincial regulators are saying. Here is what Ontario Securities Commission has to say about binary options:. Disclaimers in small print on the same websites clearly state that you can lose all or a portion of your money.
Many binary trading platforms operate from servers in the United States and overseas, meaning that the funds go outside of Canada, often through a wire transfer. This makes it virtually impossible to get your money back. The British Columbia Securities Commission has also put out an investor alert, specifically mentioning certain online-traded binary options companies as part of some kind of a broker blacklist. Some binary options are listed on exchanges and traded by registered individuals, but these represent only a portion of the market.
The BCSC is concerned that a large portion of binary options are illegally traded through unregistered and unregulated online trading platforms. Furthermore, many of the online platforms offering binary options are located offshore.
Once your money is transferred to another country, your ability to recover any funds in the event of problems is very limited. The list is updated when new unauthorized sites are brought to its attention. Check our Investor Warnings section regularly to make sure you have the most up-to-date list.
This list is not exhaustive; always check whether the person or company with whom you are considering investing is duly authorized.
Whether on the Internet or in person, offering investments is a regulated activity. The person or company asking for your money must be registered with the AMF and authorized to sell you the products being offered. Make sure you check whether the person or company is entered in the register of firms and individuals authorized to practise.
Technically and legally speaking, it is not illegal to trade binary options in Canada. However, these three provincial regulators are advising against Canadians trading binary options with brokers abroad, even though they cannot strictly enforce this. It has only put out an advisory warning of the risks associated with trading with binary options brokers located outside of Canada. With regards to foreign companies soliciting for clients in Canada, the three Canadian regulators have made it very clear that such activity is considered illegal.
They expect these companies to get the appropriate licenses in Canada before they do business with Canadian clients. For instance, one of the companies mentioned in the Investor Caution List, is a company which has full regulation in Cyprus. In the light of the information provided above, we can therefore see that traders of binary options in Canada are free to trade binary options, but they are advised to do so only with brokers who are licensed by the OSC, BCSC or AMF.
These regulators maintain an Investor Caution List of offshore brokers that traders in Canada should stay away from. The list is compiled according to complaints made by members of the public regarding these companies. The AMF provides a search function for traders to verify the regulatory status of brokers operating within the Montreal area.
In addition, the other regulatory agencies all have their own unique methods by which traders could verify the status of a broker claiming to be located within Canada. These features are important, as a few brokers which advertised to Canadians using false claims of having offices within Canada therefore implying that they were licensed by the national or provincial bodies have been found out in this manner.
You therefore need to use these facilities to know the status of brokers claiming to operate out of Canada. There is presently no information about what brokers have registered with any of the provincial regulators as a Canadian regulated binary options broker. Therefore the message to Canadian traders seems to be: We suggest using a Binary Options Signals provider — learn more here. Mail will not be published required. Leave a Reply Click here to cancel reply.
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