In this article:
Overview
Canadian options let you trade options on Canadian securities in Canadian dollars, with no currency conversion. They're listed on the Montréal Exchange, and you trade and settle them in CAD. If you don't have access yet, Canadian options are coming soon.
Before you start
To trade Canadian options, you need:
- Options trading enabled in your account. If you already have options enabled, you can trade Canadian options too. Learn how in Enable options trading in your investing account.
- The latest version of the Wealthsimple app, if you trade in the app.
Canadian options work in the same accounts that support US options, including registered accounts such as a TFSA or RRSP.
Strategies available
At launch, you can use single-leg strategies:
- Buy long calls and long puts
- Sell covered calls
- Sell secured puts
Spreads, rolls, uncovered options, and index options aren't available for Canadian options yet.
To learn what these terms mean, read Understand options terminology.
How Canadian options differ from US options
They work like US options, with these differences:
- Currency: You trade and settle in CAD. You don't need a USD account.
- Fees: An exchange fee applies. See Fees below.
- Trading hours: Canadian options follow Montréal Exchange hours and the Canadian trading calendar. The regular trading session is 9:30 a.m. to 4:00 p.m. ET.
- Contract limit: You can hold up to 249 contracts per underlying. We count your contracts across all your accounts, and we block any order that would bring your total to 250 or more.
- Eligible securities: Not every Canadian stock has options. The list can grow over time.
- Margin rate: Canadian options contracts don't currently count toward the 100 contracts needed for the lowest margin rate.
How to trade Canadian options
The steps are the same as for US options. Search for the Canadian security, open its options, and choose a contract. Follow the steps in these articles:
Fees
There's no Wealthsimple commission on Canadian options. An exchange fee of $0.04 CAD per contract applies when you buy and when you sell. We pass this fee through from the exchange. There's no fee when your option is exercised automatically at expiry, and no fee for assignment. Early exercise carries a $45 CAD fee. Fees appear in CAD on your statements.
Frequently asked questions
How are Canadian options different from the options I trade now?
The options available until now are US-listed and trade in USD. Canadian options are listed on the Montréal Exchange and trade in CAD, so there's no currency conversion.
Which strategies can I use?
Long calls, long puts, covered calls, and secured puts. Spreads and rolls aren't available for Canadian options yet.
Can I trade options on any Canadian stock?
You can trade options on a broad set of Canadian securities, but not every listed name. The list can grow over time.
Can I trade Canadian options in a TFSA or RRSP?
Yes. Canadian options work in registered accounts the same way US options do.
Is there a limit on how many Canadian options contracts I can hold?
Yes. You can hold up to 249 contracts per underlying. We count your contracts across all your accounts, and we block any order that would bring your total to 250 or more.
Why can't I see Canadian options?
Make sure you're on the latest version of the Wealthsimple app. Update through the App Store or Google Play, even if you have auto-updates on. On web, there's nothing to update. If you're up to date and still can't see them, you may not have access yet. Canadian options are coming soon.
Do Canadian options count toward the 100 contracts I need for the lowest margin rate?
No. Currently, only US options contracts count. Your margin rate still depends on how much you borrow.
Will I be charged a fee to exercise or be assigned on a Canadian option?
Early exercise carries a $45 CAD fee. There's no fee when your option is exercised automatically at expiry, and no fee for assignment. Fees appear in CAD on your statements.
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