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 stopped in 2015-2016 mostly.
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.
Today in 2017 Canadians looking to trade binary options as a financial instrument have limited options, but the options they have are very good and very legitimate.
The future of binary options in Canada is unclear, but the good news is that most any disreputable binary options company has been chased away from Canada at this time. Today, some very reputable jurisdictions consider binary options trading to be a form of gambling and have licensed it as such. In addition, long-lived companies licensed in Australia are apparently able to extend their license to accept Canadian customers, so we’re excited to review their products shortly.
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?