We provide a complete binary options trading guide for Canadians. This guide includes news & reviews on the best binary options brokers serving Canada, taxes, education & strategies.
Binary options are a simple new kind of investment that lets you profit up to 85% per trade. Trade times can be as short as 60 seconds or as long as a month — and the best part is that investors know how much they will win or lose and when it will happen. We provide straightforward, factual information on binary options and the best binary options brokers to trade with for Canadians.
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Learn More About Binary Options in Canada
Many people haven’t yet heard of binary options trading, and that’s understandable because until a few years ago it was considered an ‘exotic option’. It wasn’t until binary options was taken down from the main exchanges that individual binary options brokers popped up. Today those brokers are thriving because traders find binary options easy to understand and simple to use. Because they’re mostly unregulated, the question of binary options legality came up with traders and financial administrations of countries. Cyprus has been a leader in regulating the industry, but not all brokers regulated in Cyprus are good, and not all good brokers are based there. This is the main reason we have studied the various binary options brokers in canada ourselves and chosen those we feel are the best fit for people looking to trade them.
Binary options companies often offer bonuses or special offers in order to entice users to join, trade, and keep trading. They’re also often used as a way to lock-in traders to force a certain number of trades before a withdrawal can happen. That’s why we review the bonus offers to canadian binary options traders as a way to diagnose which bonuses are worth taking and which are worth leaving behind. It’s completely reasonable to say no to a bonus offer in order to ensure your ability to cash-out, but sometimes they’re just too good and it would be leaving money on the table not to use them.
We also address taxes for Canadians trading binary options, as due to the unregulated nature of the market, traders may find themselves with questions only a good accountant can provide. It’s important to designate whether or not binary options are considered gambling, as to how you as a Canadian should treat them for tax purposes.
Why Trade Binary Options?
To our knowledge, no other investment option provides the speed of return of Binary Options trading. With trades maturing in as little as 60 seconds from execution and returning 85% on your investment, binary options can be a highly profitable part of your trading strategy. They’re high risk, high reward investments, and in our opinion should be used in moderation as part of a larger risk-profiled strategy.
Furthermore, choosing the right broker to trade with makes all the difference in your binary options trading. Issues such as whether the broker provides knowledgeable advisors, whether their trading bonuses are worth taking, and whether the brokers pay you back on-time and as-expected is important to consider. We’ve done the legwork for our readers in researching and speaking with the binary options brokers listed on the website, and we know that in recommending Canadian investors trade with certain brokers, we leave our readers in good hands.
Can I Get Rich Quick Trading This?
No, not if you’re looking at this logically. Because binary options are traded rapidly and have large payouts per-trade, some people think it’s a path to quick profits — we disagree. Mathematically speaking, binary options are win/loss events, right? Well, if you’re a really good trader, you might be able to win 65% of your trades. That still means that almost 1/3 of the time, you’re going to choose incorrectly. And, unlike traditional stock/options trading, there is no room in binary trading to let winners run and cut losers. So yes, one trade is highly profitable, but when you make 1000 trades the law of averages comes into play.
That is obviously not to say that we recommend against binary options trading, but it is NOT a get-rich quick scheme. Be very wary of any broker or website who tells you you’re going to be rich doing this. Everyone would do it if that was true!
How much should I deposit?
This depends on you as an investor. Binary options are not risk-less investments, and their high alpha value means this is going to be some of your highest risk and highest reward investments. Do not invest in highly volatile things with money you need for your expenses, do not trust any broker who convinces you otherwise. You need to use free money which you dedicate to investing and learning, and have to be willing to lose it if that is the case. Whether your trading capital is $250 or $250,000, be aware that this money will move very quickly.
Are binary options different than put and call options?
Yes, very different. Traditional put and call options are “contracts” written on underlying shares of stock (or other asset). Effectively they’re a promise to do something (either buy or sell) those underlying options and their value fluctuates with the asset. Binary options are an up/down wager on the price of an underlying asset at a certain time. The value of the option is fixed, the underlying value is the trigger. So, where in a traditional put/call option, a price swing of $1 on the underlying asset might swing your value 40%, in a binary option all that matters is whether the $1 swing in the underlying is in line with your wager (above or below the strike price).