You probably know what the Binary option is. It is a trading investment with a prediction that can be either right or wrong. An investor bets that a given asset will be above or below a certain point after a fixed amount of time. This article focuses on Binary options in Canada – What you need to know.
It is popular worldwide and you can do it anywhere. But when it comes down to the process of doing it, there are are some exceptions. Some countries operate under some rules and regulations that do not subscribe to the trading of binary options. A typical example of some of these countries includes Canada.
In Canada, while government allows citizens participate in binary options, the laws restrict the trading itself. Therefore making it illegal. In order words, a broker does not have the authority to operate in Canada. However, there are some other options on how people do it.
Canada is among the countries with strict laws regarding its trading. A binary option is seen as a risky investment scheme for domestic investors in Canada. However, note that each county has an agency that regulates the system and overall trading process. Residents in Canada can however search for well-to-do brokers elsewhere where the binary options trading is legal.
Is binary options trading legal in Canada?
There are many residents in Canada who want to really know if it’s legal to trade binary options in Canada and whether legal brokers operate within the country.
Well, it is difficult to become straightforward about the subject. The existing rules in Canada make it difficult to say for sure the extent to which it allows binary options .
Currently, you can not handpick a broker with a license or a regulatory binary options broker in Canada. But they do not restrict Canadian binary options traders to use the services of brokers from other countries where it is fully legal.
There are reputable brokers in favorable jurisdictions like Japan or Cyprus that Canadians can do tradings with. These are offshore areas where it is pretty much possible for Canadian citizens to trade binary options.
Important questions people ask about binary options in Canada
Are binary options legal in Canada?
There are many investors in Canada who are rapidly developing interest in binary options trading. Subsequently, there have been questions about whether it is entirely legal in countries like Canada. It is strongly affirmative that there will be no prosecution for those who go online to look for offshore brokers to trade from Canada since there is really no information that exists in the Canadian authority body that revolves around its trading and legality.
Among the many financial authority bodies of Canada, binary options trading is not specifically mentioned on provincial and even national level.
Will Canadian government apprehend binary options traders ?
It is safe to say that binary options investors can freely register with an online broker and start since there is currently no known law about it. Again, there is no solid ground and basis for the government to persecute traders.
Most Canadian investors contact online brokers from the offshore to trade with. Also, traders from all over the country can legally and freely trade. Since, there is no province legislation concerning binary options trading.
Where can you find a list of reputable offshore brokers?
Well, traders from Canada will have to go online and search for offshore brokers themselves as there is no regulation on binary options made by Canada financial authorities yet, unlike other countries. In order words, the body has not created any list of reputable brokers where traders can search from. It is best to find the ideal broker that is available and this can be very easy when you make good research.
What assets should Canadian investors trade?
It is better for Canadians to trade with assets related and relevant to the united state as they seem to have more liquidity and volume to foreign brokers. We often advise that traders trade assets that relate to where they live. However, beneficial to this maybe we don’t see it as the best profitable option. We believe that foreign brokers have no interest in some assets. Like Canadian commodities, indices, stocks, or currency. And even if they are assets of interest, only a few foreign brokers would see it profitable.
Facts about Binary options fraud in Canada
As mentioned earlier, one of the factors that contribute to the ban of brokers in Canada is because the Canadian financial authorities deem it to be a risk for domestic investors. The Internet-based trading platforms that most of these binary options platform trade through do not often comply with the United State regulatory requirements, in such a way they could engage in illegal activity.
In order not to be a victim, it is better to be abreast of some too-good-to-be-true promotion scheme that is usually offered in binary options trading platforms.
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