Is it legal to trade binary options in canada
When you have decided how much money you can set aside to get started, decide whether you are going to accept a bonus.
Brokers love to give bonuses to traders, and usually these are very helpful as a budget boost. But, some bonuses have been created as drawbacks. Such bonuses are not worthwhile at all. We will notify you if the situation changes. Are Binary Options Legal in Canada? Although Canada has many financial authority bodies, none of them mentions binary options specifically on national or provincial level.
At the moment, it seems that no information exists when it comes to binary options. This does make the traders weary, but the majority of them are confident that no persecution will follow if they go online and look for offshore brokers to trade binary options. Can the government go after Canadian binary options traders? Since there is no law about it, the government has no basis to persecute traders.
Since there are no provincial differences about this because none of the provinces has legislation about binary options, traders from all over the country can legally and freely trade. Does legal means regulated? This is why its recommended to exercise a high degree of caution when deciding on a broker. A broker can be legal, but if there are no guidelines in the industry that means all kinds of brokers can attract traders in Canada.
To avoid being caught in a scam, Canadian traders are strongly advised to perform thorough check on a broker before conducting business with the broker. Do Canadians have to be concerned about singing up with an offshore broker? The lack of regulation means that Canadians have access to brokers from all over the world, which means to brokers located in highly reputable jurisdictions like United States , United Kingdom or the EU in general.
Can I find a list of reputable brokers? Therefore, the responsibility of finding a legitimate broker falls on the shoulders of the traders themselves. But, if you take your time to do a research, you will easily come up with the best brokers available to you. Start with our site and the brokers found there and make your way towards other. Can a broker acquire a license in Canada? No licensing process is in place in Canada. This leaves lots of room for foreign brokers to compete for the Canadian trader.
However, these foreign brokers may hold a license and every Canadian trader should always invest his hard-earned dollars only at licensed brokers. Can I seek help from the Canadian financial governing bodies? All provincial authorities or the national one can be contacted if questions arise. What is the national financial authority?
If there was a licensing process in place, the financial authorities that would have overseen the issuing of licenses and regulation of the market would be the Canadian Securities Administrators CSA. What assets should Canadians trade? There have been increasing cases of fraud committed in the binary options industry throughout the world, and Canada has faced the same issue.
According to the Canadian Securities Administrators CSA chair, binary options had become the leading type of investment fraud in the country. Back in March, the CSA had issued a warning to all Canadians, but they had still not banned binary options trading.
This task force had created a website that would act as a resource to warn Canadians against trading binary options. Furthermore, they coordinated their efforts with online advertisers and mobile app companies to prevent advertisements luring Canadians to trade binary options.
Nevertheless, trading of binary options continued despite their efforts, adding further to the number of complaints to the CSA. According to the resource website provided, there had been no binary options broker licensed to operate in Canada. They were all unlicensed operators who would solicit Canadians with promises of great profits but only swindle them off their money. It is true that most binary options brokers are pure scams as other financial regulators have discovered.
Furthermore, dealing with an offshore broker is always a bad option because it is difficult to persecute them, even if they are licensed and regulated. Worse still, some of these binary options brokers were extremely ruthless and not even doing any trading at all. The broker would often deny any withdrawal requests or use the credit card information provided to make illegal withdrawals. This is why the institution finally banned binary options as a final measure.
It is important to note that the banned binary options are those with a period shorter than 30 days. There are very short period binary options, going as low as 1 minute. The CSA equated such binary options with get-rich-quick schemes which the brokers use to lure in Canadians. Besides, the brokers will not be able to dangle the promise of quick profit to potential clients. Therefore, only informed investors are going to be interested in the trade.