Is Pocket Option Legal in Canada?

Last updated Jul 2, 2024

In Canada, trading binary options is entirely banned, making it illegal for firms, including Pocket Option, to offer such services directly to Canadian citizens. Canadian individuals may still open accounts with offshore brokers like Pocket Option despite the ban. However, this activity operates in a legit gray area, with the broker's MISA regulation not providing specific legality or protection under Canadian law.

About Pocket Option Broker

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RegisterTrading binary options carries high risks. You may lose all invested funds
Profitabilityup to 92%
Minimum Deposit$5
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Pocket Option is a binary options and CFD broker known for offering a wide array of accounts and services tailored to meet the diverse needs of traders, from novices to seasoned professionals. The broker stands out for its comprehensive selection of deposit and withdrawal methods, including credit cards and electronic wallets. It provides a diverse range of asset classes for trading, such as stocks, currencies, and cryptocurrencies. Additionally, Pocket Option offers various trading platforms, including the popular MT4 and MT5, and offers high-quality analytical materials and educational resources to aid traders in making informed decisions.

Advantages of Pocket Option

  1. Variety of Accounts and Services. Allows traders to select the most suitable option for their trading needs.

  2. Wide Selection of Deposit and Withdrawal Methods. Offers flexibility in managing funds.

  3. Diverse Asset Classes for Trading. Enables trading across a broad spectrum of markets.

  4. Trading Platforms. Includes access to MT4 and MT5, enhancing the trading experience.

  5. Analytics and Education. Provides valuable resources for both learning and strategy development.

Disadvantages of Pocket Option

  1. Weak Regulation. This may introduce certain risks due to the lack of stringent oversight.

  2. High Spreads for CFD Trading. It can diminish trading profitability.

  3. Protracted Withdrawal Time. Withdrawals can take up to 14 days, which may be inconvenient.

  4. Average Range of CFDs. Offers a less extensive selection compared to some competitors.

  5. Lack of iOS and Desktop Applications. Restricts trading flexibility across different devices.

Is Pocket Option Regulated in Canada?

Pocket Option is not regulated within Canada. It operates under Infinite Trade LLC, regulated by the Mwali International Services Authority (MISA) with license number T2023322. Canadian laws prohibit binary options trading, making local platform regulation non-existent.

Can Canadians Use Pocket Option for Trading?

Canadians can technically use Pocket Option for trading due to the platform's availability online and its regulation by the Mwali International Services Authority (MISA) under Infinite Trade LLC. However, it's crucial to understand that binary options trading is entirely banned in Canada. This prohibition means Canadians can access offshore trading platforms like Pocket Option, but Canadian authorities do not regulate these platforms. As a result, Canadian traders might face risks without local regulatory protection. Canadians should proceed cautiously and know the legal and financial risks of engaging with offshore binary options brokers.

The legal status of binary options in Canada is a subject of significant regulatory scrutiny. As of the latest updates, binary options are considered illegal within the country. This prohibition extends to the advertising, offering, selling, or otherwise trading binary options shorter than 30 days to individuals. The Canadian Securities Administrators (CSA), an umbrella organization of Canada’s provincial and territorial securities regulators, has explicitly banned binary options.

This regulatory stance comes as a response to the high risk associated with binary options trading and the significant number of scams and fraudulent activities in the industry. The CSA's ban aims to protect Canadian investors from potential fraud and financial loss associated with these high-risk financial instruments.

Despite the national ban, Canadian residents may find ways to trade binary options through offshore brokers. However, these transactions occur in a legal gray area with heightened risks. Canadian authorities do not regulate offshore brokers, meaning Canadian traders may have limited recourse in disputes, fraud, or financial loss.

Canadian residents need to be aware of these regulations and the risks involved in seeking to trade binary options through unregulated platforms. The Canadian government and regulatory bodies continue to advise against participating in binary options trading and recommend caution when dealing with investment opportunities.

How Can Canadians Safely Trade Binary Options?

For Canadians interested in trading binary options, navigating the regulatory landscape safely requires careful consideration due to Canada's total ban on binary options trading. Here are steps Canadians can take to trade binary options as safely as possible despite the inherent risks:

  1. Research and Understand the Regulations. First, it's crucial to understand that binary options are banned in Canada. This ban means no regulated Canadian financial institution or broker legally offers binary options.

  2. Seek Regulated International Brokers. Look for brokers regulated by reputable authorities in their jurisdictions. Regulators like the UK's Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are known for strict oversight. However, remember that these regulations do not provide the same protection as Canadian regulations.

  3. Evaluate the Broker's Reputation. Before engaging with any broker, research their reputation online. Look for reviews from other traders and check for any warnings from financial regulatory bodies.

  4. Understand the Risks. Acknowledge the high-risk nature of binary options. Investing money you can afford to lose is essential, and knowing the potential for fraud in unregulated markets is necessary.

  5. Practice on Demo Accounts. Many reputable brokers offer demo accounts where you can practice trading without risking real money. This step is crucial for understanding the platform and refining your trading strategy.

  6. Check for Legal Advice. Considering the legal complexities surrounding binary options trading in Canada, consulting with a legal expert knowledgeable in Canadian securities law could provide valuable insights and help you navigate potential legal issues.

  7. Be Cautious with Offshore Brokers. While Canadians may access offshore brokers, it's important to proceed cautiously. Offshore brokers might not offer the same level of security, transparency, and recourse in case of disputes or fraud.

  8. Educate Yourself. Make use of educational resources to understand binary options thoroughly. Market analysis, risk management, and trading strategies can significantly reduce risks.

  9. Start Small. If you decide to proceed, start with a small amount of capital to minimize potential losses as you learn.

  10. Stay Informed. Regulatory and legal frameworks can change. Stay informed about any legal changes in Canada regarding binary options trading and international regulations affecting Canadian traders.

By following these guidelines, Canadians interested in binary options can take steps to protect themselves. However, it's important to remember that trading with offshore brokers carries significant risks, especially in a market as volatile and speculative as binary options.


In conclusion, the legality of Pocket Option in Canada is complex due to the country's total ban on binary options. While Pocket Option operates under regulation from the Mwali International Services Authority (MISA) through its parent company, Infinite Trade LLC, this does not extend legal operation within Canadian borders. Canadian traders can technically access and use Pocket Option and other offshore binary options brokers; however, they do so at their own risk, without the protection of Canadian financial regulatory bodies. Canadians must be aware of the legal landscape and the potential risks involved in engaging with binary options trading platforms not regulated within Canada. The transition from IIROC to CIRO as the national regulator underscores Canada's commitment to protecting investors and maintaining market integrity. As the financial landscape evolves, so will the regulations and guidelines surrounding trading platforms and investment opportunities. Canadians interested in trading binary options should proceed cautiously, stay informed about regulatory changes, and seek advice from financial and legal professionals.


How to Verify a Broker's License in Canada?

To verify a broker's license in Canada, you should now refer to the Canadian Investment Regulatory Organization (CIRO). CIRO is the national regulator overseeing Forex trading, among other financial activities. To check a broker's regulatory status, visit the CIRO website and utilize their search tools to verify dealer members' registration and licensing. The Canadian Securities Administrators (CSA) website also remains a valuable resource, offering a search function for entities regulated across various provinces and territories. Suppose a broker claims regulation by a specific provincial body. In that case, this can be cross-verified on the website of the respective provincial securities regulator, such as the Ontario Securities Commission (OSC), for those claiming regulation in Ontario. This process ensures that you engage with a legitimately recognized and regulated broker under Canadian financial market laws, offering a layer of investor protection.

Are There Any Legitimate Binary Options Brokers in Canada?

Binary options are banned in Canada. This means no brokers can offer binary options trading within the country. Canadian authorities, including the CSA, have warned against trading binary options through any platform, emphasizing the high risk of fraud. Canadians should be cautious and avoid engaging with any entity that claims to be a legitimate binary options broker operating within Canada.

What Are the Tax Implications for Binary Options Trading in Canada?

Despite the ban on trading binary options in Canada, Canadians who deal with offshore brokers and earn profits may still be subject to Canadian tax laws. Generally, profits from trading are considered capital gains and must be reported on your tax return. However, if the Canada Revenue Agency (CRA) deems your trading activities frequent enough to constitute business income, your profits may be taxed as income. Given the complex nature of tax laws, consulting with a tax professional is advisable to understand your obligations.

Are Binary Options Considered Gambling in Canada?

Canada's legal and regulatory framework tends to view binary options trading as gambling, mainly due to its high-risk and speculative nature. This perspective is reinforced by the ban on binary options and the warnings issued by Canadian regulators, highlighting the similarities between binary options and gambling activities. The lack of regulatory oversight and the high potential for loss have led authorities to caution Canadians against engaging in such activities, treating them with the same caution as gambling.

Which Trading Platform Is Best in Canada?

Determining the best trading platform depends on your specific needs, including the type of trading, tools required, and level of support. For a comprehensive comparison of options, visit our top Forex brokers in Canada.

Nikolay is an experienced specialist in financial markets and co-founder of IamForexTrader. He has been successfully trading Forex since 2014 and has been actively involved in the cryptocurrency market since 2017.

He develops investment strategies adaptable to any level of experience and has been actively investing in stocks, bonds and ETFs since 2018.