Binary Options In Canada Taxes, Regulations and Access
Tuesday, October 15th, 2013 by Michael Freeman
In this post I will cover popular questions regarding Binary Options In Canada. For additional information regarding regulations, taxes, available brokers and legality in Canada or anywhere else in the world feel free to leave a comment below.
Is Binary Options Legal in Canada?
In Canada, a Binary Options broker may offer services legally, but its important to understand that most brokers are not actually regulated in Canada by the authorities overseeing online trading activities such as the Canadian Securities Administrators (CSA) or the Ontario Securities Commission (OSC). In most cases brokers are seeking EU regulations and as the industry grows were seeing more regulations being acquired by companies, in more jurisdictions. In Canada there is no legal requirement for a company to be regulated as an international company, located outside of the country.
Are there any Binary Options Brokers located in Canada?
Unfortunately not. RBOptions appeared to be located in Canada but based on Forex Peace Army, the Canadian address represents a Virtual Office. Virtual offices to mask a real address are used very often with web-based businesses.
IS RBoptions Regulated in Canada?
There are no regulated companies in Canada at the moment. Visit the list of US Friendly Brokers if you are trading from Canada.
Is it safe to trade with a Binary Options Broker located outside of Canada?
There are safe alternatives for Canadians who wish to explore different options. Checkout the review section for Recommended Brokers offering access to Canadian Residents.
Can a US citizen, living in Canada, trade with RBoptions?
Rboptions is available for US traders and Canadian Traders based on reviews. They are not restricting any traders from other countries.
Are traders required to file taxes on capital gains from Binary Options?
As a Canadian citizen you must file a tax return, irregardless of where the money was earned. As an individual trader you must file a tax return and report profits as Income Earned. The tax brackets in Canada range between %17.75% and 56%! On a personal level, non-corporate, you will hit the max %56 at $60,000, depending on your province. Dont be discouraged. Expenses related to your online trading activities are deductible. Many high-income traders incorporate a company and enjoy lower tax rates reaching %25 for up to $500,000 instead of reporting taxes on a personal level.
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