The binary options market in Canada has continued to thrive over the years. This is not because investors and brokers like the law managing it, because there is really none, but because binary option brokers have had great leeway in how they conduct their business. A good number of those binary options brokers have made big business from Canadians, and in the process made a good reputation for their firms. However, there are still many others that are accessible to Canadians but whose credibility is not always easy to determine.
The law regarding binary trading in Canada
The reality is that those who run binary trading businesses in Canada are not restricted to one particular law. There is actually no statute that defines what binary options are, and how binary options trading should be conducted within the country. As such, binary options brokers are left to choose whether to consider binary options as securities, like any other securities traded on the stock exchange, or as a betting game where results depend on how lucky the traders are in their predictions. Those who opt to see them as securities often register their businesses outright as a binary options business. On the other hand, those who view binary options in terms of plain predictions often register their businesses as internet gaming.
In short, what the binary option brokers who want to operate legally do is register their firms as businesses licensed to operate in Canada; not as trading firms that can be held accountable for investor funds under any specific Canadian law.
Is There A Way of Assessing a Firm’s Credibility?
For investors who want to invest in binary options in Canada and want to put out a big outlay, they often want to be cautious. It is good to know that there are binary options brokers who are credible, and who are duly registered as binary options brokers, and whose business is regulated by a higher body – only that happens out of the country. Often the operations of such binary options brokers are monitored by a regulatory body in their country of registration. In fact, many binary options Canada are traded by binary options brokers whose business is regulated by the relevant bodies in the US, Cyprus, or the other countries that regulate the binary options trade. In short, the best thing is to do due diligence to determine where the binary options broker is registered and regulated from, because in case of a claim of malfeasance, there is not much Canadian authorities can do under the law to help out.
What does the Canadian Securities Administrator or CSA agency do?
Many potential binary options traders would expect to be protected by the CSA agency. However, this agency only acts as an umbrella body to streamline the other capital markets across Canada. They are yet to factor in binary options trading as a security market within the mainstream capital market. And since it is not clear if that is going to happen soon, it may be a good idea to engage in binary trading with top binary options brokers duly registered in the US or other serious jurisdictions.
Is There Hope For The Binary Options Market In Canada?
Already there has been a lot of hype about binary trading in the country, and many Canadian residents have begun trading in binary options online. Many more are eager to engage, but are not sure who the best binary options broker is. It would be advisable to ascertain that the firm falls under a particular regulator. One can also check out binary option trading websites to ascertain if the broker has approval in some credible jurisdiction like the European Union (EU) or even the US.