Binary Options is a type of trading that can be done worldwide, but with a few exceptions on how it is done, as prescribed by the laws and regulations in each country. In Canada, it’s citizens can participate in Binary Options but the trading itself is illegal in the country. That means no broker is authorized to operate within the country, but people have multiple options on how they can do it.
Every country has assigned an agency or board to regulate the system and overlook its trading process. Some countries have stricter laws, including Canada. Because of its misunderstood reputation, its government deemed Binary Options as a risky business to its domestic investors. As a resident in the country, you could look outward and find reputable brokers offshore where the trade is legal.
Where to Look?
Although Binary Options is illegal in Canada, it allows people to participate in the trade by using brokers from another country. You have the option to sign up with a foreign broker and open a live trading account. In order to look for a broker, you can shop around the global market. It would be ideal to look for a country with strict trading regulations so you know your assets and investments will be protected.
Certain areas gained an infamous reputation due to their questionable trading activities. It pays to do your own research before making any commitments. You can also obtain recommendations from other Canadian investors who have tried Binary Options brokers abroad. There are countries that offer a list of reputable brokers. If you are able to look for a particular one, it is best that you check with the local board first for their legitimacy.
Basis of Broker Selection
The purpose of getting into Binary Options is to essentially earn a profit. A broker is a platform that would help you reach your goal. Since you will be relying heavily on your foreign broker, it is important that you reconcile any barrier so things can work well and transactions will run smoothly.
The first thing you have to look into is the broker’s website. When you test the platform, look beyond its interface and into how user-friendly it is for traders who are into Binary Options in Canada. Make sure the broker offers its transactions in Canadian dollars so you don’t lose any amount in the currency exchange. Make a thorough assessment before you even start making your account, depositing some money and start trading.
It is recommended to start with a small initial capital to test the waters first. As you improve, you can put higher amounts if your budget allows you to do so. Remember that Binary Options is a two-way street, you either win everything or lose everything, no in-betweens. When enlisting with brokers, you get subjected to bonuses from them, but be wary of the terms and conditions in availing them because they may not be worth it at all.
Other Factors to Consider
Since foreign Binary Options brokers have enabled Canadians to trade through them, they provide rich resources and tools their clients can use and refer to so they can learn the ropes of the trade. Look for broker websites that have a rich library of information because having one means that the website looks after the welfare of its traders.
There are also plenty of websites that offer demos to let potential clients get a feel of their website. This is advantageous for you because you can make a more in-depth assessment of the website.
Look for superb customer service. This will ensure that you are attended to for any queries and problems you might encounter navigating through the website. Unresponsive customer service could be a sign of fraudsters. Take note of contact numbers or a live chat service. Look for other options if there is no sign of a professional customer support team.
Transfer of Funds
If you don’t want to lose money after a successful trade, look into brokers who get little to no fee when cashing in from transactions. Check the payment type and methods and its compatibility with your resources. Everything is taxable in Canada so make sure that you declare even your small winnings to avoid any legal sanctions later.
There are possibilities for Canadians to participate in Binary Options if you know where to look. Although its operations are illegal in the country, you can turn to legal operations from other countries. The possibility of earning money becomes endless because of this.