Options trading in Canada provides investors and traders with opportunities to hedge risk, speculate on price movements, and generate income. While options are complex derivatives, they are regulated to ensure transparency and investor protection. This guide outlines who regulates options trading in Canada, what types of options are available, and the biggest options brokers for Canadian traders.
| Name | Logo | Options Markets | Commission | GMG Rating | Customer Reviews | CTA | Feature | Expand |
|---|---|---|---|---|---|---|---|---|
 |
Options Markets 10,000 |
Commission $0.25-$1 |
GMG Rating |
Customer Reviews |
Visit Platform 59.7% of retail investor accounts lose money |
Account Types:
|
Interactive Brokers: UK's Best Overall Options Trading PlatformAccount: Interactive Brokers Options Trading Description: IBKR has one of the best options trading platforms for all types of clients because of their market range and strategy builders let you create options trading strategies visually and with AI. Is Interactive Brokers good for options trading?
IBKR offers one of the most, if not the most, advanced options trading platforms for private clients, both for derivatives markets (indices, commodities, and forex) and stocks and shares. They provide access to a huge number of UK and international stock options, but where they really win business is through their execution capabilities. Their strategy builder tool automatically creates the legs for spreads based on what you think is going to happen to the market and you can set your profit and loss visually through drag and drop charts. For this review, I spent an hour or so talking to Steve Sanders, who runs product development for IBKR and it’s epic. There is far too much to go into for a short piffy review and even an a options broker myself I found some of it overwhelming. If you are a professional options trader, I would say there is no better platform out there. However, if you are just getting started trading option, IBKR has a new options tool called Options Wizard, which identifies options strategies according to market outlook, as well as the ability to add option chains into layouts and customise the data that is shown. What’s great about this is that it will create strategies around what you think will happen in the market rather than having to work it out longhand yourself. For exmaple, one of the most popular pieces of analysis we write is about whether or not the Lloyds share price will reach £1 in 2025. So to test IBKR’s Options Wizard I asked it on the GlobalTrader app to to come up with an options strategy that would make me the most money if Lloyds reached £1 before the end of the year. Users can also now make use of options screeners, which sort and scan for option data within new dedicated sections and sub-tabs. Options Wizard: Identify options strategies that match a market outlook. Option Chain in Custom Layouts: Add one or multiple option chains into layouts and customize data columns to show option-specific data, such as the Greeks or Implied Volatility, and use color grouping to connect to other tools in the custom layout area, such as the Rapid Order Entry, to create trades. Options Screeners: Sort and scan for option data with new dedicated sections and sub-tabs that offer complex combination strategies volume and trades for the day, among other features. Pros
Cons
Overall4.9 |
Interactive Brokers won “best options broker” in our 2025 and 2023 awards. They offer a huge range of markets to trade options on, low fees and platform features that enable you to easily create options strategies.
Who Regulates Options Trading in Canada?
Options trading in Canada is regulated by multiple financial authorities to ensure fair and transparent markets:
Investment Industry Regulatory Organization of Canada (IIROC)
- IIROC oversees all securities and derivatives trading in Canada, including options.
- It enforces rules for brokers offering options trading and ensures compliance with risk management guidelines.
Canadian Securities Administrators (CSA)
- The CSA is an umbrella organization of provincial regulators, such as the Ontario Securities Commission (OSC), that oversee options trading within their jurisdictions.
Montreal Exchange (MX) Regulatory Division
- The MX, a division of the TMX Group, is the primary exchange for trading equity and index options in Canada.
- It enforces market rules, monitors trading activity, and ensures market stability.
What Options Can You Trade in Canada?
Options trading in Canada allows investors to trade various types of options contracts on different asset classes, including:
Equity Options
- Listed on the Montreal Exchange (MX).
- Options on individual stocks of major Canadian companies like Shopify (SHOP), Royal Bank of Canada (RY), and Canadian Natural Resources (CNQ).
Index Options
- Options on major Canadian stock indices, such as the S&P/TSX 60 Index Options (SXO).
- Provide exposure to the broader stock market.
ETF Options
- Options on popular Exchange-Traded Funds (ETFs), including those tracking the S&P/TSX Composite Index, international markets, or commodities.
Currency Options
- Options on the Canadian dollar (CAD) against other major currencies like the USD.
- Traded on the Montreal Exchange (MX).
Commodity Options
- While Canada does not have a domestic commodities options exchange, traders can access U.S.-listed commodity options via brokers offering international market access.
Biggest Options Brokers in Canada
Several IIROC-regulated brokers provide access to options trading on the Montreal Exchange and international markets. The largest options brokers in Canada include:
Questrade
- A low-cost broker offering options trading on the MX.
- Provides a user-friendly platform and competitive commission rates.
Interactive Brokers Canada
- Offers access to Canadian and U.S. options markets.
- Known for low commissions and advanced trading tools.
TD Direct Investing
- A subsidiary of TD Bank, TD Direct offers robust options trading platforms such as thinkorswim.
- Provides educational tools for beginner options traders.
RBC Direct Investing
- Provides access to Canadian-listed options and some U.S. options.
- Offers integrated banking and investing solutions.
Scotia iTRADE
- Offers options trading with educational resources and tools for beginner and advanced traders.
- Supports advanced order types.
CIBC Investor’s Edge
- Competitive commissions on options trading.
- Access to Canadian and U.S. options markets.
Options trading in Canada is well-regulated, with IIROC, the CSA, and the Montreal Exchange ensuring transparency and investor protection. Traders can access a wide range of options, including equity, index, ETF, and currency options, primarily on the Montreal Exchange.
Several IIROC-regulated brokers offer competitive pricing and platforms to trade options, catering to both beginner and advanced traders. Choosing the right broker depends on individual needs, such as commission costs, platform features, and market access.