Ukraine is the next door neighbor to Russia and has a large Russian speaking population, mostly found in the Eastern part of the country. Though not as wealthy as Russia and obviously without the numbers in terms of population, there has been a steady increase in the number of traders carrying out binary options trading in Ukraine.
Ukraine was expected to join the European Union in 2014 before ex-President Viktor Yanukovych decided to pitch tents with Russia. This resulted in a missed opportunity to fully integrate with the EU and possibly sign-up to the Markets in Financial Instruments Directives (MiFID). This has affected the state of the local binary options market negatively, resulting in the non-existent state of regulation of the market in that country.
Best Brokers in Ukraine
Binary options trading in Ukraine is not prohibited, but trading with the local brokers in the unregulated environment is very risky. The risk factor is enhanced by the fact that most of the companies operating in Ukraine are companies which have been kicked out of other countries as a result of market infractions and systemic unwholesome practices within the industry.
The only way to safely carry out binary options trading in Ukraine is to use regulated offshore brokers. We present a list of brokers that will enable you perform binary trading in Ukraine in a safer environment. These are brokers with good track records and which do business with valid operational licenses, issued by their country’s regulators. Here they are:
As countries like Israel (which has a large Russian speaking population), Turkey and Belgium lock out binary options brokers from their markets, some of these brokers are finding Eastern Europe to be a welcoming destination to continue their business. Ukraine is not a signatory to the MiFID protocol, and the regulatory powers of the state regulatory agency over the binary options market remains weak. This has enabled some brokers to setup shop in Ukraine without necessarily having to fulfill strict regulatory requirements. This of course has implications on the sanctity of the market, but has led to an increase in binary options trading in Ukraine.
Regulation of binary options in Ukraine is presently very weak. There are two sets of regulatory agencies in Ukraine.
There is the government agency known as the State Commission for the Regulation of the Financial Markets in Ukraine. The Commission is tasked with the following mandates:
- Implement the policy of the Ukrainian government regarding provision of financial services within the country.
- Define and implement strategies to develop the financial services market.
- On behalf of the state, to regulate and financial services.
- Ensure compliance of laws guiding the financial services industry.
- Protect consumers of financial market products by enforcing the laws in order to prevent or stop infractions in the financial markets.
- Facilitate the integration of the Ukrainian financial markets with the European and world markets.
There are also a number of financial industry self-regulatory organizations (SRO), but these do not yet exert a strong regulatory influence on market operators.
The State Commission for the Regulation of the Financial Markets in Ukraine has a stronger influence on the local stock market as well as the derivatives market. At the moment, the regulatory protocols for the forex market are still under development; there is no definition whatsoever for the regulation of the binary options market. This has led to the proliferation of largely unregulated brokerages and call centres in Ukraine, targeting the local population as well as the market in China and the Far East. While this has led to an increase in binary options trading in Ukraine, it has also exposed the trading population to the risks associated with unregulated binary options trading.
Deposit Methods Available for Binary Options in Ukraine
The following transaction methods are available to Ukrainian binary options traders:
- Bank wires: Ukrainian binary options traders can use the bank wire option to fund and withdraw funds from their binary options accounts without restrictions.
- Digital wallets: It should have been easy to use some of the Russian digital wallets such as Yandex.Money, WebMoney and Qiwi from Ukraine. Unfortunately, the conflict with Russia has had consequences as the Ukrainian government banned the use of payment systems of Russian origin in 2016. Ukrainian traders are therefore restricted to the use of international digital wallets such as Skrill and Neteller. MasterPass, the digital wallet from MasterCard, is also available to Ukrainian binary options traders for the purpose of account deposits and withdrawals.
- Card Options: Ukrainians can use their bank-linked cards to make deposits and withdrawals on platforms. Usage is subject to individual terms and conditions imposed by brokers.
- Is it legal to trade binaries in Ukraine?
Yes. While it is not illegal to trade binaries in Ukraine, there is presently no regulation for the product within the country.
- Are binaries regulated in Ukraine?
No. It is not officially regulated in Ukraine.
- Is it safe to trade binary options in Ukraine?
The local brokers in Ukraine offering these products are presently not regulated. Therefore, it is a safer option to deal with offshore brokers that are regulated in other parts of Europe such as Cyprus.
- How to trade binaries in Ukraine?
Presently, there are a few local brokers in Ukraine. These are the mostly made up of companies which are exiting Israel and other areas of Europe where binary options is banned. In order to perform binary trading in Ukraine, you must first open a trading account with any of these local brokers or an offshore broker. After fulfilling the account opening requirements, you can commence the trading process.