‘All or nothing’ – A phrase that can be used to describe, more or less, the fundamental concept of binary options. Binary options are regarded as an exotic financial aptitude to the complexity of their nature.
Binary options trading is a form of investment trading where the payoff is either a fixed, predetermined amount or nothing at all, depending upon the fact that the option expires either in the money or out of the money.
There are two major forms of binaries:
- Cash or Nothing Binary Option
You earn a fixed return if you are successful in trading.
- Asset or Nothing Binary Option
If you lose in the trading, then the underlying security value is paid to you at the time of trade expiry.
Binary options trading is affected by the condition in which the tradable security goes above a certain value at the end or expiry of the trade or not.
Since the trade is based on a simple yes or no proposition, it is regarded as gambling sometimes. This has led to governments of various countries banning the trade; Canada is one of them.
Binary options in Canada
Binary options trading is known for the fraudulent practices that are inherent in the trade. Many times, brokers are known to have manipulated the prices, causing staggering losses to the investors.
Canadian citizens with little or no knowledge of the trade have suffered at the hands of brokers who have scammed them out of their money. Binary trading is banned in Canada because there are many binary frauds that were suffered by Canadian residents.
On September 28, 2017- Canadian Securities Authorities imposed a ban on binary options trading for options that have an expiration of fewer than 30 days. The main phase of the ban was that the Canadian authority forbids trading and sales in binary options for retail clients.
Even though binary options trading is illegal in Canada, the ban of the trade is questionable since it provides a gaping loophole for binary traders. Even though the ban does not allow any binary options brokers to hold a valid license in the country, it does authorize its citizens to participate in binary options trading and to hire offshore brokers to do so. This is a way to ensure that the trade which is carried out is on legal and ethical lines and also the brokers hired are valid license holders reducing the risk of fraudulent brokers.
Thus, it is necessary to ensure that binary brokers hired are trustworthy and efficient for legal and ethical trade.
Listed below are a few such binary brokers:
Top 3 Binary Options brokers in Canada
#1 Quotex.io
The trading software Quotex is a relatively new, user-friendly, and inexpensive trading platform. It is owned by Awesomo Ltd., a firm based in Seychelles. It is regulated by International Financial Markets and Regulatory Center (IFMMRC). The trading platform has shown exponential growth since its establishment in the year 2019.
It offers a variety of trading instruments such as digital options, forex, indices, and cryptocurrency.
Features of the trading platform
The trading platform is user-friendly, transparent, and with easy functionality and access to a diversity of tools. One of its distinct features is a relatively easy 4-steps method to carry out the trading.
After registering yourself with the platform, complete the signup process. And follow the following instructions:
- Choose an asset
The trader chooses an asset of interest. Each financial instrument displays a high return of up to 98% if the trader wins.
- Installation of Bet
The user then chooses the size of bet and expiration time for closing the deal.
- Investment Amount
The user chooses the amount of capital he will invest with minimum trade at $1.
- Forecasting and Result
A forecast is done according to the scheduled time. The trader picks either ‘up’ or ‘down’ depending upon the investigation in which the user believes the price will move in.
Mobile app
The mobile app gives you the satisfaction of trading on small screens. The online platform provides you with a mobile trading app on iOS as well as on the androids.
Deposits
The minimum deposit needed in Quotex by traders is $10. This platform allows various payment methods with payment options varying from country to country. Payment methods available are as follows:
- Bitcoin Payments
- Credit Cards
- MasterCard
- Netteler
- visa
- Skrill
- QIWI
- Perfect Money
- UnionPay
- WebMoney
Also, you do not have to pay any amount of fees on withdrawals and deposits.
Withdrawals
The minimum withdrawal amount prescribed is $10 but higher for Bitcoin, that is, $50. The company does not necessitate additional verification but can request high-value transactions.
The withdrawal period prescribed is 1-5 days. However, the firm attempts to make the payment on the same day on which the withdrawal application is submitted.
#2 IQ Option
IQ option is a financial services provider which is part of a company named IQ Options Ltd. The trading platform introduced itself in the year 2013. As it is designated as a Cypriot Investment Firm, it is regulated by Cyprus Securities Exchange Commission (CySEC).
Over the years, that this trading platform has provided its servicing and expanded to a great extent. IQ Option has made a name for itself for providing quality services and is known to be one of the most well-recognized and leading brokers in this industry.
Features of the trading platform
- A well-designed and user-friendly platform, it provides its users with a wide variety of tools.
- Binary options trading and CFDs on popular financial instruments are made available to its users on their platform.
- In 2020, IQ Options introduced the feature of margin trading with certain.
- Designated as a Cypriot Investment Firm, it holds a CIF license. This license allows the trading platform to provide its financial services to clients belonging to European Economic Area (EEA).
- One of the many new features added by the platform is called ‘Position Top-Up.’ This feature allows a margin of scope for its traders to recover losses before the trade is closed.
Mobile app
IQ Option provides its traders with a mobile trading app. It is for the convenience of traders who are unable to remain at their trading terminal for a prolonged period. This app allows traders to monitor their trade on their smartphones and enable them to keep up with all the developments easily.
Deposits
A minimum deposit of $10 has been prescribed by IQ Option.IQ option provides several methods of fund transfer for the funding of accounts. Some of the payment methods available are- ADVcash, Alipay, Credit Card, MoneyGram, Perfect Money, Skrill, and QIWI, etc.
The IQ Option platform has an own system of its own called AstroPay. AstroPay is for those countries that do not have any other way of transferring funds.
Withdrawals
The method used for making deposits is the same one used for the withdrawal of funds. You can withdraw the earned amount within twenty-four hours, but withdrawal through e-wallets takes only a few hours to process. Whereas, for withdrawal by credit cards and bank wire transfer, the process can take up to 10 business days.
#3 Pocket Option
The trading platform introduced itself in the year 2017. On this platform, you can perform online trading for forex and binary options. It is situated in the Marshall Islands. It is regulated under International Financial Market Relation Regulation Center.
Pocket Option is a well-reputed and reliable online trading platform for binary trading.
Features of the trading platform
- It allows its traders to do Limited Trades and earn high payouts.
- The trading platform provides platform software for all its clients.
- It integrates all features and assets of a broker in one place and provides an easy trading solution.
Mobile app
The pocket option provides a user-friendly app that is easily available and can be downloaded from Google Play or Apple Store. This app is ideal for beginners and explains how to use the app.
Deposits
A minimum deposit of $50 is prescribed by Pocket Option. No deposit fees are charged while using the Pocket Option. The deposit time is 1-2 business days. Deposits can be made with payment methods such as Debit/Credit Card, Bank wire transfer, and Electronic Wallet Transfer.
Withdrawals
The minimum withdrawal amount prescribed by Pocket Option is $10, and there are no withdrawal fees charged. You can make the withdrawals within twenty-four hours on a working day. Methods used to make deposits can also be used to make withdrawals.
Conclusion
Binary options trading is a risky investment. Fraudulent practices are prevalent in the trade, with brokers scamming unsophisticated traders by manipulating prices. This is the reason why it is banned in some countries while in some, the trade is regulated under strict laws.
Thus, select the offshore broker carefully. In order to achieve that, sufficient information regarding the brokers should be gathered before entrusting them with your money. It is recommended to consult people who have hired offshore brokers before or choose reliable brokers, as mentioned above in the article.
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