Binary Option Trading in Canada

Binary options trading has the potential to be profitable for investors worldwide. In Canada, the legalities rest in a gray area.

As an investor, you need to be aware of your ethical and legal responsibilities. While there are some gray areas, one thing is clear: Canada has made it illegal for binary options brokers to operate inside of the country. If you want to trade binary options in Canada, you must use an offshore broker.


We want to help you engage in ethical and legal trading, all while bringing in profits. Check out this guide to learn everything you need to know about binary options trading in Canada.

AT A GLANCE: Our Picks for the Best Binary Options Brokers For Canadian Traders
  1. Best Trading Platform:Pocket Option
  2. Best for Minimum Trade Amounts:BinaryCent
  3. Best Bonuses:RaceOption
The Best Binary Option Trading in Canada
If you're looking for a binary broker that caters to customers around the world, including USA and Europe, then Pocket Option is one of the best options available.

Table of Contents

The Best Binary Options Brokers For Canadian Traders

Binary Options Brokers For Canadian Traders
Pocket Option
If you're looking for a binary broker that caters to customers around the world, including USA and Europe, then Pocket Option is one of the best options available.
  • Maximum Profit: 96%
  • Min. Deposit: $50
  • Min. Trade: $1
  • Assets: 100+ Crypto, Commodities, Stocks, and Currency Pairs
  • Platform: Web, Android, iOS, and Windows
BinaryCent trading environment is friendly and secure for all traders. This broker comes highly recommended for all types of traders.
  • Minimum Deposit: $250
  • Minimum Trade: $0.10
  • Assets: CFDs, Forex, and Options
  • USA Friendly: Yes
  • Assets: Commodities, Crypto, Forex, Indices, Stocks
This platform is best suited for beginners that are looking for a simple interface that is easy to understand.
  • Minimum Deposit: $250
  • Max Payout: 90%
  • Bonus: 20-100% Deposit Match
  • USA Friendly: Yes
  • Assets: CFDs, Forex, Indices, Stocks, Commodities

Is Binary Option Trading in Canada Legal?

Until 2017, there was no reference to trading binary options anywhere in Canadian law. In late 2017, Canada made it illegal for binary options brokers to operate within the country’s borders.

Even before this law was implemented, Canadian authorities insisted that investors steer clear of any broker that operates within the country.

Despite its many financial institutions, Canada has never had any licensed or regulated binary options brokers. Investing your money in a binary options broker in Canada was a risky business. You were handing over your investment to an unreliable body. This rings even more true with the current illegality of binary options trading inside Canada’s borders.

However, as a Canadian resident, you can look elsewhere to make legal binary options trades. For example, Canadians can turn to brokers in reputable jurisdictions like Cyprus, Japan, or the United Kingdom. There are also reliable brokers located throughout the European Union.

When you are looking for an offshore broker as a Canadian, be a skeptical shopper. Know that not every country has a system in place to regulate binary options trading. For example, the British Virgin Islands, St. Vincent, and the Grenadines and Belize are infamous for their less-than-reputable trade activity.

Does Canada Offer A List of Reputable Brokers?

Because using a domestic binary options broker is illegal in Canada, the government has not released a list of reputable brokers as other countries have done. However, you should be able to find the best broker to meet your investing needs. You just need to conduct adequate research. Never rush into choosing a broker in hopes of getting rich quick.

Factors To Consider When Choosing An Offshore Broker

Keep the following factors in mind when selecting an offshore broker:

Customer service: Because your binary options broker will be in a different country, you need to ensure it offers superior customer service. This way, you can rest assured knowing you will have continuous support. Look for an offshore broker that has prompt 24/7 service. Search for reviews from Canadian traders who are similar to you in terms of assets available and overall financial goals.

Resources and tools: Because of the illegality of binary options in Canada, you may not be well aware of the benefits it can offer. Find an offshore broker that provides educational resources and tools you can use to enhance your learning of this specialized investing method.

Usability: Ensure that your offshore broker has an easy-to-use website platform. This way, you can dedicate more of your time and attention to making profitable trades. Try to find a platform that offers a demo account so you can get a feel for the website before putting your own money at risk.

Compatibility: Where do you plan on doing your trading from? Consider if your offshore broker’s website is compatible with Android, iOS, and desktop platforms.

Deposits and withdrawals: Opt for a broker that allows for deposits and withdrawals with minimal fees. As a Canadian resident, try to find a broker that operates in Canadian dollars. This way, you won’t have to worry about losing money in any currency exchange.

Types of options: All of the offshore brokers out there offer different trading options. Be aware of the ones you want available to like no-touch, one-touch, boundary, and doubling up.

Payment type: How do you want to fund your account? Check? Wire transfer? Credit card? Some brokers cause hefty fees for certain payment methods. You should know what your primary payment is going to be before choosing your trading platform.

Do I Need To Pay Taxes on Income Generated?

Any money you make from a binary options trade is considered taxable income in Canada. As a Canadian resident, you will need to:

  • Report the profits you make
  • Take any losses into account.

Failing to report your earnings can land you in serious legal trouble. You may be required to pay additional fines on top of your expected taxes.

Even if your earnings don’t seem significant enough to report to the Canadian tax department, you need to do so anyway. To know how much you owe, keep thorough records of your expenditures, profits, and losses. Keep all of your binary options trading activity organized, so you know which tax year it falls into. Make sure you have all of this information on-hand ready to view.

If you have begun the trading process and have not been keeping the proper records, bring your documents up-to-date.

If you have any apprehensions or are unsure of how to report your earnings, visit a trusted accountant for professional advice.

How To Get Started With Binary Trading if You're Canadian

Once you have settled on a reliable trading platform, you can register for an account and begin the trading process. Begin with a small investment amount and only invest what you can afford to lose. As you acquire investment knowledge, it can be tempting to pool large amounts of money into binary options trading. Avoid falling into this trap and never invest anything that can put you in a poor financial position.

A lot of offshore brokers offer bonuses as enticing ways to get you to invest more upfront. Evaluate these bonuses and consider if the large initial investment amount is something you can afford.