Canadian investor interest in binary options trading has increased significantly over the past few years. More and more Canadians are flocking to the binary options industry to find a secondary source of income, and even more are currently looking for brokers because of the hit the markets have taken so far this year. While the binary options industry has been running for a long time, it has been much more popular in Europe and in the US, but Canada is catching up. That is why it is important for prospective Canadian investors to understand what the laws and regulations are for binary options trading in Canada before they start trading.
Recommended Binary Options Brokers for the Canadian Market
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Are Binary Options Legal In Canada?
In one word: Absolutely! However there are certain things that Canadian investors should be looking at before they open an account with any binary options broker. First and foremost, investors must understand that there are a lot of scam binary options brokers out there. That is why it is crucial to read the reviews and open an account only with a trusted broker.
The next thing that Canadian investors should know, is that they have to declare any income made from binary options trading. Investors who fail to pay taxes on their capital gains from binary options trading, may have problems with Canadian tax authorities. That is why Canadians are advised to check their specific tax regulations in the province they reside in, and see what the policy is on profits from binary options trading.
The third issue has to do with binary options regulation in Canada. Currently there are very few brokers that are regulated in Canada. That is because most of the binary options traders are either in Europe or the US. This doesn’t necessarily mean that trading with a broker that is based out of Europe or the US will automatically result in scam attempts. Again, it is very important to read the reviews before opening an account and start trading.
Canadians that are still reluctant to trade through a binary options broker that is not registered as a business in Canada, should check recur to the CSA for additional information. CSA stands for The Canadian Securities Administrators. This is the governmental organization in charge of regulation regarding binary options brokers in Canada. The fact that a broker is not registered in Canada, doesn’t necessarily mean that either the trader or the broker would be infringing upon Canadian laws and regulations for trading originating within Canadian territory.
Prospective Canadian Traders
It is important to understand that while conducting any kind of business over the internet, consumers should take additional measures to protect their funds and interests. The binary options industry is not an exception. Here is a list of things that Canadian traders must look out for before they open a binary options trading account with any broker:
- Make sure you understand the risks involved in binary options trading, and that you have chosen the correct investment strategies before you start trading.
- Make sure you read broker reviews before you open an account with any broker.
- Make sure that the binary options broker you are going to trade with is trustworthy and is not a scam.
- Make sure you try your investment strategy out either through a demo account or by making small trades first.
We hope that all the prospective Canadian investors who are looking into binary options trading, found this article useful. Our team has put together a list of trusted brokers below so you can read the review and then chose which the best broker to start trading with is. Make sure you read the review and open an account with the broker that best meets your needs.