So much disinformation here. Tracers are NOT legal but there is no enforcement done on them. Here is the Reader's Digest version:
Explosives Act/Regs and Criminal Code prohibit you from possessing ANY explosive, period.
Explosives Act/Regs makes exceptions for you to possess certain kinds of explosives.
Ammunition is classified as an explosive.
Explosives Regulations defines "safety cartridge" which is basically inert bulleted ammunition.
Explosives Regulations very specifically EXCLUDE tracers from definition of "safety cartridge".
Explosives Regulations says you are allowed to possess "safety cartridges" only.
Ergo, tracers are specifically excluded from the kinds of explosives you are allowed to possess, making them illegal. NRCAN has the resources to go after businesses but not individuals. That doesn't mean an astute cop won't.
Lots of people here will play ostrich and pretend it isn't true, or rage on NRCAN like a bunch of five year olds. I've been in the explosives business for almost 17 years so I know a bit about the Explosives Act. Take my advice for what it's worth.