Best Binary Brokers
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.
Best Binary Options Broker in Canada
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.
Regulations
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.
The closest example of a federal agency overseeing the financial industry for Canada is the Canadian Securities Administrators (CSA). The CSA is an umbrella organization for financial regulators from each of Canada’s 10 provinces and 3 territories. They include the following:
- Alberta Securities Commission
- British Columbia Securities Commission
- Manitoba Securities Commission
- New Brunswick’s Financial and Consumer Services Commission
- Newfoundland and Labrador’s Office of the Superintendent of Securities of the Service
- Northwest Territories Securities Office
- Nova Scotia Securities Commission
- Nunavut Securities Office
- Ontario Securities Commission
- Prince Edward Island’s Office of the Superintendent of Securities
- Québec’s Autorité des marchés financiers
- Saskatchewan’s Financial and Consumer Affairs Authority
- Yukon Territories’ Office of the Superintendent of Securities
The main objective of the CSA is the coordination and harmonization of policies and regulations across the country to ensure the smooth operation of Canada’s financial industry. The CSA was also responsible for the development of the “Passport system” which allowed the approval of a financial regulator in one province or territory to be used to register in another province. However, it should be noted that this passport system is not as comprehensive as the EU’s passporting system due to the fact that not all the provinces are participating in the system. Ontario which is home to Canada’s largest capital market makes its own decisions regarding the oversight of Ontario’s financial market.
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.
Because of how Canada’s financial industry is being currently regulated, it goes a long way towards explaining why Canada so far has not been able to come up a regulatory framework to regulate the trading of binary options. 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.S.
Considering the fact the industry is evolving and undergoing best practices scrutiny in major European financial markets, the CSA should ideally conduct more research to see as to how binary options trading in Canada can be properly regulated, and how it can add more revenue to the country’s tax coffers.
Deposit Methods Available In Canada
Being a modern first world economy, Canada is able to support a wide range of payment transfer methods. Major credit/debit cards such as VISA, MasterCard, Diners and American Express are widely accepted in the country. 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.
FAQ
- Is it legal to trade binary options in Canada?
It is technically not illegal in Canada as the country lacks a legal framework for regulating binary trading.
- Are binary options regulated in Canada?
No. There is no legislation in Canada governing trading of these financial instruments.
- How to trade binary options in Canada?
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.
Conclusion
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.
