Over the past few years, Binary options trading has grown in popularity among retail traders based in Canada. However Canada is one of the few major countries that has not developed any regulatory framework to regulate the trading of binary options in the country. As a result of an unregulated trading environment, many retail traders often fall prey to unscrupulous binary brokers that are only out to fleece their clients. As a result, the number of complaints lodged against these scam brokers to the Canadian Securities Administrators CSA has risen considerably as well during the last couple of years to the point that it has began to affect the industry as a whole.
However, the fact that Canadian binary options brokers are not regulated, does not mean it is illegal for a Canadian resident to trade them. What it means is that traders based in Canada can trade this high return investment without any restrictions. But it also means that Canadian based traders have to be extra vigilant and conduct their market research properly to find suitable brokers to trade with.
As long as the trading activities are confined to reputable binary options brokers that accept Canadians and that are regulated in another jurisdiction, traders can have the peace of mind that their money is safe with the broker. At present, there are no Canadian binary options brokers per se.
The bulk of the brokers that are servicing the Canadian market are based offshore. Nevertheless, we highly recommend those who are interested in trading to only use CySEC regulated brokers. In Canada, the financial industry is regulated at the domestic level by agencies which are established by legislations passed in one of the 13 provinces or territories of Canada. Canada unlike most other major economies does not have a central or federal body which oversees the financial industry as a whole.
They include the following:. However concerns about the effectiveness of the decentralized nature of the current regulatory system have prompted calls for a more effective system such as a national body to oversee the financial system. Such a system will provide a more consistent approach towards the protection of investors. In addition, it also allows for faster response in terms of policy changes to meet emerging trends in the market.
To the CSA, binary options investment is akin to gambling rather than investment, an archaic view long discarded by financial regulators in Europe and the U. Being a modern first world economy, Canada is able to support a wide range of payment transfer methods.
In addition, online payment solutions such as Paypal and Skrill are popular among Canadian. Bank wire transfer is also well supported by the banking infrastructure in Canada.
It is technically not illegal in Canada as the country lacks a legal framework for regulating binary trading. To trade binary options in Canada, you have to sign up with a broker and open a live trading account. Once you have placed a deposit into your trading account, you can start to trading at one of these sites. As the industry is not regulated in Canada, we recommend that you only sign up with reputable and CySEC regulated brokers. These brokers operate by international standards and comply with international legislation regarding money laundering.
As for now, it is unclear which direction the industry will take in Canada. Nevertheless, the Canadian authorities are currently clamping down hard on disreputable brokers leaving the field clear for bona fide and reputable brokers to establish a foothold in Canada.More...