Top 3 Binary Options Trading Brokers in Canada
As you may know, each nation has their own set of rules and regulations regarding binary options trading. In this article, we’ll focus on the procedures and opportunities for Canadian-based traders. Now, in respect to rules and regulations, trading binary options in Canada is perfectly legal. However, there are several agencies in Canada that regulate trading for their respective provinces.
First, the top agency that oversees trading operations in Canada is the Canadian Securities Administrators (CSA). For those that reside in British Columbia, the British Columbia Securities commission (BCSC) will oversee trading activity. In addition, Ontario residents can be assured by the Ontario Securities Commission (OSC), and for those residing in Alberta, there is the Alberta Securities Commission (ASC).
These agencies were created to assure that customers are not deceived and that firms operating under their jurisdiction follow proper business conduct.
The reality is that most of the internet-based binary options brokers are NOT registered with these Canadian Agencies. In fact, the BSCS released a statement warning its residents about RBOptions, 24options.com, GOoptions.com, TradeRush.com or any other unregistered binary options trading platform/broker. The fear they have is that these binary options are illegally traded through an unregistered and unregulated trading platform. It’s true, the BSCS is well known for being the strictest Canadian based regulatory agency. Now, no claims on these broker/platforms have been made outside of RBOptions, which was falsely representing themselves as being based out of Toronto and Ontario.
To sum it up, these regulatory agencies are letting you select whichever broker you’d like. However, if something goes wrong, they can’t protect you, since these brokers are not registered under their regulatory body. At the time of this writing, they are only issuing a warning to investors, not shutting down firms. In fact, in August of 2013, the BCSC added 24options.com, GOoptons.com and TradeRush.com to their Investment Caution List.
What should the Canadian investor do? It appears that the regulatory agencies have yet to take a firm stance on binary option brokers. They are not stopping you from trading with them, but they are warning you about the possible dangers. Where do you go if they’ve yet to take a firm stance? The answer is not as difficult as it might appear. One simply needs to look for binary option brokers that are regulated in other countries to get some assurance.
If you didn’t know, the majority of binary option brokers are located out of Cyprus. With that said, the regulating body in Cyprus is the Cyprus Securities and Exchange Commission (CySEC). When a firm is regulated, they have to constantly stay up to date with proper business practice. With that said, it’s important for an investor to keep up with the latest news from these regulating agencies. Each firm regulated under CySEC receives a license number, when conducting your due diligence, simply ask the binary option broker what their license number is, and see if it matches up with CySec’s website. In addition, visit CySEC’s website and routinely read their announcements, as new warnings and fines occur frequently. Some popular CySec regulated companies include 24option.com, OptionRally, Banc de Binary and EZTRADER to name a few.
In conclusion, the regulators are starting to get more involved with binary options brokers, after a slow start. As in Canada, there are no firm policies yet. However, if a Canadian resident wanted to participate in these markets, their best bet would be to look for broker/platforms that are regulated elsewhere. At the moment, CYSeC appears to be the most organized regulating body in the binary options trading arena.
