In this article we will look at the kind of regulation and services a Binary trader in Bulgaria can expect. We also feature a list of the best Bulgarian binary brokers based on a number of factors which include Product, Services and Customer Services.
Bulgaria has emerged from being a centrally planned economy to a free market in the last 27 years. This has led to an increased interest in the financial products of today from the millennial population in Bulgaria. Binary options trading in Bulgaria is expanding, boosted by the increasing presence of binary brokers in the country. Bulgaria is fully compliant with the Markets in Financial Instruments Directives (MiFID) protocol, and this has had a positive effect on binary options trading in Bulgaria.
Best Brokers in Bulgaria
Bulgarians can choose between some of the local brokers in the country, or the offshore brokers located in regulated EU member states. As binary options trading is legal in the country, traders in Bulgaria should not have any issues locating regulated brokers. Local brokers are required to state their FSC license numbers on their websites. Where there are doubts on the status of a broker’s licensing, the FSC is always available to put paid to any such doubts courtesy of their broker inquiry service.
The selection of a binary broker has to be done carefully. You have to make sure you can deposit and withdraw funds without hassles. Here is a list of brokers that can be used by Bulgarian citizens to trade binary options.
The financial markets in Bulgaria are regulated by a government-formed agency known as the Financial Supervision Commission (FSC). The Financial Supervision Commission (FSC) is an agency of the Bulgarian government which is charged with not only the regulation of the Bulgarian capital market, but also the various insurance markets in the country. The FSC is also responsible for the regulation of the derivatives market in Bulgaria. Formed in 2003, the FSC is autonomous and reports to the country’s national assembly. The FSC operates under the financial services law known as the Financial Supervision Commission Act.
Due to the fact that the FSC handles regulation of not just the financial markets, there is a division within the FSC known as the Investment Activity Supervision Department, which handles the regulation of the following financial products:
- Securities markets
- Investor Compensation Fund;
- Investment intermediaries
- Collective investment schemes
- closed-end investment and management companies
The FSC does not simply license and regulate corporate entities. It also licenses natural individuals who are involved in the securities market, conducting transactions and providing various consultancy services in the financial services industry. The FSC maintains a register of licensed and regulated entities and individuals. Traders who want to confirm the regulatory status of any company or individual promoting binary options in Bulgaria can do so by making the appropriate inquiry from the FSC.
Where performing its functions and legally provided powers, the primary mission of the Financial Supervision Commission is to maintain stability and transparency on the non-banking financial sector and to ensure protection of the consumers of financial services and products.
In Bulgaria, binary options are classified as OTC derivative instruments. The FSC provides periodic warnings about brokers and operators in the market who claim to be licensed in Europe under the MiFID protocol, but are unable to state exactly which regulator has licensed them. The FSC also punishes errant brokers within Bulgaria, and also warns the public against offshore brokers that are not licensed.
Deposit Methods Available In Bulgaria
The restrictions that now exist for trading binary options in Bulgaria will definitely affect the way transactions can be conducted with offshore brokers.
- Bank wires: Bank wires can be used universally by Bulgarian traders. This allows unlimited limits when it comes to how much cash can be moved to the trading account and also from the trading account to the trader’s bank account.
- Credit/debit cards: Cards issued by MasterCard, VISA and other credit card companies can be used to deposit and withdraw funds in Bulgaria. Most of these cards are bank-linked. Conditions associated with usage of credit/debit cards will differ from one broker to another.
- E-wallets: The usage of digital wallets to deposit and withdraw funds among Bulgarian traders has been enhanced with the ePay.bg digital wallet service. Those carrying out binary options trading in Bulgaria can also use the Qiwi digital wallet to deposit and withdraw funds. It is also possible to use any of the international digital wallets such as Skrill and Neteller. There is also a possibility to use Paysafecard to put funds on your account.
- Is it legal to trade binaries in Bulgaria?
Bulgaria is one of those countries in Europe where binary options trading is allowed and very much legal. All that the FSC requires is for the trader to conduct trading with brokers regulated by EU regulators in individual countries, or with local brokers regulated by the FSC.
- Are binaries regulated in Bulgaria?
Yes it is regulated in Bulgaria by the FSC. The FSC licenses brokerage firms offering binary options in Bulgaria, making it legal to do so.
- How to trade binaries in Bulgaria?
As a Bulgarian citizen, you can trade in two ways. You can decide to conduct binary options trading in Bulgaria using local brokers, who must be licensed and regulated by the Financial Supervision Commission. The second option is to trade with an offshore broker within the EU. Such a broker must be licensed to offer binary options in the country of domicile. These are the only two ways to ensure that you are trading with genuinely regulated brokers.