Canadians wishing to get involved are wondering are binary options legal in Canada, and if so, if there are any particular terms of which they should be aware.
There are multiple and often conflicting sets of rules at play regarding the legality of binary options. Canadian law doesn’t yet reference binary options directly but the Canadian securities authorities note that no binary options brokers are licensed or regulated in Canada. However, that does not stop brokers from other countries from offering their services to Canadian traders.
A Brief History
Previously, many offshore (meaning any country but Canada) binary options brokers were regulated in fairly reputable jurisdictions like Cyprus or Japan and offered their services from there to Canadians, but that was halted in 2015-2016 for the most part.
In addition, companies “regulated” (and we do use that term loosely) in places like Belize, British Virgin Islands, St. Vincent & Grenadines and so on offered their services to Canadians as well, and those too have been mostly halted from dealing with the Canadian market mostly through Canadian blocks of credit card payments but also through regulatory interest in their operational countries.
Today in 2017 Canadians looking to trade binary options as a financial instrument have very limited options in who they trade with. While that’s a sad fact for those who like to trade binary options, there are still at this time fully regulated high quality brokers in first world countries ready and willing to take Canadian business.
There is discussion among Canadian regulators on whether to ban binary options outright, but it appears there is much pushback to the idea. It’s up in the air as to whether binary options will have a long term future in Canada, but until then we will recommend and list only top-quality regulated brokers on our site.
Canada currently has the Canadian Securities Administrators (CSA) agency, which was formed by securities regulators of all ten provinces and three territories. The CSA is an umbrella organization whose objective is to try to streamline the diverse capital markets in operation across the country.
Which Broker To Use?
When researching a broker, traders should ensure that it is trustworthy, reputable, and applies fair trading practices. Fortunately all the companies listed on our website are licensed and regulated, just not by Canada itself.
See our list of recommended brokers for Canadian citizens on our binary options brokers page.
BINARY OPTIONS LEGALITY BY PROVINCE
Because different provinces have their own financial regulations, we explore the question of binary options legality on a province by province basis.
- Are binary options legal in Ontario?
- Are binary options legal in New Brunswick?
- Are binary options legal in Newfoundland and Labrador?
- Are binary options legal in Manitoba?
- Are binary options legal in Alberta?
- Are binary options legal in Québec?
- Are binary options legal in Prince Edward Island?
- Are binary options legal in Saskatchewan?
- Are binary options legal in Nova Scotia?
- Are binary options legal in British Columbia?