Anyone seeking to establish the places where binary option trading is most prevalent should have Canada on the list. There are many active binary options traders in Canada, and that is not because the Canadian government keeps binary options brokers under control or under stringent regulation. On the contrary, traders who engage in binary option trading within Canada do it with the hope that brokers who have been at it for many years would not be keen to defraud their customers lest they mess up business. That is the closest deduction one comes to considering that the country has no specific law on binary trading.
Binary Options Brokers Regulated Outside Canada
However, for those traders who are cautious and cannot rely solely on the brokers’ word, they usually seek services from binary options brokers who can show proof of being registered and licensed in a particular jurisdiction like the US. Considering the US and Canada are already trading partners in other sectors, Canadians have no reason not to trust brokers registered in the US even when Canada itself is not involved in the transactions.
Odd Legal Situation In Regard To Binary Options
The situation in Canada is not always easy to explain to outsiders. For one, Canadians are correct to assure everyone that binary trading is not illegal in their country, because essentially, law enforcement authorities do not harass anyone in the trade, whether it is the traders or the brokers. However, they cannot quote any statute under which binary trading takes place because there is none; at least not as a legal trade. The brokers who can justifiably quote a statute are those binary options brokers who take binary option trading as a gambling activity the same way poker is. As such, they register their binary options business under the law governing other betting activities. This then means that no binary options trader can sue the broker for loss of money put in, as that money is considered as normal stakes in a betting game.
Binary Options Traders Seek Safe Brokers
Some people may have feared that binary option trading is not safe in Canada for lack of regulation, but serious traders have actually been making big business. What they do is establish why any binary options broker claims to be the best. Has the broker been in business for long? Does the broker have a good track record with binary options traders within Canada? Above all, is the broker registered in a country within the US, Europe or elsewhere, where they have legally accepted binary options as trading securities? If the broker can show proof of all that so that there are many Canadian binary options traders who can vouch for them, and there is foolproof confirmation of registration in a respected jurisdiction, then the trader feels safe to engage the binary options broker in business.
Can Canadian Brokers Register Outside Canada?
It is likely some Canadian business people may wish to register in the US as binary options brokers so as to tap the business available in their home country and elsewhere. However, the US is not as liberal as many people may imagine when it comes to registering foreign trading firms. Priority is given to local businesses, and it may be a long shot for a foreigner to try and get licensed as a binary options broker there. Still, Canadian business people interested in handling binary options are likely to find a more welcoming country within Europe. The good thing is that Canada does not inhibit binary options trading in the country even when the firm is registered outside. As such, it is easy to make money in Canada through binary options trading either as a broker or a trader.