Best Binary Brokers
Binary options trading has managed to capture the imagination of traders and investors from all over the world. Ever since its inception in the financial markets during the later parts of the 2000s, binary options trading has received widespread acclaim and popularity due to the availability of advanced desktop/mobile trading devices and high-speed internet access. However, with the ease of investing in binary options, the industry has also witnessed a considerable rise in the number of scams and financial frauds, which have ultimately proven detrimental to the question of the legality of binary options trading as a genuine financial product. We take a brief look at binary options trading in some of the most popular financial markets and discuss its legal status in different countries across the world.
Binary Options Trading in Australia
Australia is one of the best countries in the world for the financial market that has a strong regulatory environment under the Australian Securities and Investments Commission (ASIC). All financial products, brokers, and companies operating in the Australian market are expected to be registered with the ASIC, and it’s currently illegal for any international companies to offer their services to Australian traders without an ASIC license. Regulated binary options brokers in Australia are well-known for their high quality of services and investor-protection policies, but there’s a slight uncertainty regarding the future of binary options in this country due to the unprecedented rise in broker frauds and scam practices that may result in serious intervention from the Australian authorities.
Binary Options Trading in Brazil
Brazil, being the largest country in Latin America, is also one of the fastest growing economies in the world. Therefore, its population is keen on experimenting with exotic, high-risk financial products, which makes binary options trading the perfect platform for Brazilian traders. It’s naturally difficult to find any local binary options brokers in Brazil, owing to the regulatory policies of CVM (Comissão de Valores Mobiliários-the Securities and Exchange Commission of Brazil), as CVM doesn’t directly regulate any binary options companies. However, CVM has not put a complete ban on its traders from investing in international binary options brokers, which opens up the possibility of trading with any leading service provider according to the traders’ choice.
Binary Options Trading in Bulgaria
Bulgarian traders enjoy the advantages of being citizens of a country that is a part of the European Union. As per existing EU laws and the European Economic Area (EEA) agreement, all traders from Bulgaria can trade with any EU-based binary options broker and enjoy the same benefits and investor-protection policies adopted according to the European Markets in Financial Instruments Derivatives (MiFID). It’s also possible for Bulgarian investors to choose any of their preferred binary options broker in Bulgaria, as the Financial Supervision Commission (FSC) of the country has issued regulatory licenses to several entities, thereby providing the advantage of trading binary options with a homegrown financial company.
Binary Options Trading in Canada
Canada has a complex network of regulators, regulatory policies, and internal provinces, which makes financial regulation quite tedious for both companies and individual investors. Although the Canadian Securities Administrators (CSA) oversee the activities of all the different financial regulatory organizations in the country, it’s inherently difficult to find a binary options broker in Canada. There is also a recent ruling by the Canadian authorities that prohibit most aspects of binary options trading, but such entities are aware that Canadian traders still can trade binary options through international brokers. As of present, there isn’t any total ban on binary options trading in the country by way of trading with overseas brokers.
Binary Options Trading in Cyprus
Cyprus is one of the most influential countries in the market, where binary options trading is legal and highly regulated. Being a part of the European Union, binary options brokers in Cyprus have a massive amount of reputation in the international community. The Cyprus Securities and Exchange Commission (CySEC) is home to the highest number of reliable binary options in the world, where brokers are regulated as per the strict regulations of the Markets in Financial Instruments Derivatives (MiFID). CySEC regulated brokers are also EEA authorized, which ensures that all traders from the EU are protected by several investor protection schemes such as the ICF (Investor Compensation Fund). Despite having global acclaim, Cyprus based brokers may not be able to cater to traders from specific countries. In such cases, it’s best to consult with the broker’s representative for a clearer picture.
Binary Options Trading in Dubai
Dubai is a prominent figure in the entire Middle East and North African (MENA) region, but the country also enjoys a significant amount of authority in the global financial industry. Dubai is home to numerous business free zones, tight financial regulations, and a wealthy population, Dubai is considered to be a great destination for volatile financial products, with Forex and binary options trading being highly popular among Dubai traders. Dubai forms part of the United Arab Emirates, where there are several regulatory organizations that are in charge of broker regulation, but binary options brokers in Dubai are regulated by the Dubai Financial Services Authority (DFSA) and the Dubai International Financial Center (DIFC). Dubai is quite open to the international community, which makes it easy to set up a brokerage and offer binary trading services to traders and investors from Dubai.
Binary Options Trading in Germany
Germany is the backbone of the Euro Zone and the single largest economy in Europe that makes a major contribution towards the European Union. It’s known for its financial strength and strict regulations, which keeps all companies operating in the country transparent in their dealings. However, due to the high operating costs and regulatory requirements, most binary trading companies tend to take advantage of the EEA to offer services to German investors through an EU license, typically obtained from other countries such as Cyprus. Regardless, binary options brokers in Germany are regulated by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), which is responsible for regulating well over 4000 financial organizations operating in Germany. German traders should benefit from the investor protection laws that are in place for all EU traders under the MiFID.
Binary Options Trading in Hong Kong
Hong Kong is a major financial center in the Asia-Pacific that is known for its excellent financial stability, foreign investment policies, and a robust economy. Traders from Hong Kong have a wide array of investment opportunities, including binary options trading, which makes it easy for both local and foreign investors to trade high-risk products through local or international brokers. Binary options brokers in Hong Kong are expected to be regulated by the Securities and Futures Commission (SFC), but the organization has recently warned its citizens about the potential risks of binary trading. You can always minimize the risk of scams by finding a local Singapore binary options company, or by investing your trading capital in a reputed and regulated broker from the international market.
Binary Options Trading in India
India has a strong stance against any new and innovative products that may be in direct or indirect contradiction with their existing laws and financial policies. The Indian authorities have warned its citizens against investing in any online brokers that offer Forex and binary options products, which means there are virtually no local binary options brokers in India. The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) have outlined several laws to curb Forex trading, but the rules related to binary options trading is still in a gray area. Indian traders should consider the option of trading with overseas brokers, but it’s imperative to follow all the money transfer laws that are applicable in the region.
Binary Options Trading in Indonesia
Indonesia is not as advanced or sophisticated as its other neighboring Asian countries when it comes to the financial markets, but the Indonesian economy is indeed advancing at a rapid rate. The Financial Service Authority, also known as Otoritas Jasa Keuangan (OJK), is the primary financial regulatory organization in the country for regulating financial products and allied companies. Binary trading in Indonesia is slowly gaining prominence in the market, with several local traders and investors looking to invest in reliable binary options brokers in Indonesia. However, the ease of offering binary trading services to Indonesian traders from international jurisdictions, along with the open and lenient policies of Indonesian authorities, does prevent binary options brokers from setting up a branch establishment in Indonesia.
Binary Options Trading in Ireland
Binary trading is a legal and accepted activity in Ireland, especially considering the relationship of the Irish government with the European Union. Traders have a wide choice of binary options brokers in Ireland, complemented by the EEA initiative that allows all EU-based brokers to offer binary options products and allied services to Irish traders. Binary traders from Ireland are protected by the EU initiatives, but the country also has a central regulatory authority in the form of the Central Bank of Ireland, which supervises the financial activities and policies that are aimed to protect the Irish economy. The Central Bank does regulate the binary options industry to a certain extent, but the European Union and the MiFID also have special laws in place to protect investors from financial scams.
Binary Options Trading in Israel
The binary options industry has been facing a turmoil in Israel over the past decade. It witnessed some of the largest scams and financial frauds which resulted in an ultimate ban on binary options trading and brokerages. Therefore, it’s currently illegal for any company to set up or operate a binary options broker in Israel, forcing Israeli traders to turn to alternative brokerages from the international market. The Israeli Government is directly in charge of regulating the financial market through its various ministries and department, but there’s yet to be a full crackdown on international firms, which allows traders to open an account at an overseas binary options broker for the time being.
Binary Options Trading in Jamaica
Defined as one of the best tourist destinations in the world, the Caribbean nation is home to wonderful beaches and an all-welcoming attitude towards visitors. Therefore, it’s also become an attractive investment destination, although not as proclaimed as some of the other Caribbean islands. Regardless, binary options trading has not been outlawed, neither has its Financial Service Commission (FSC) introduced any policies for regulating trading. We have also yet to come across any binary options brokers in Jamaica that are regulated by the FSC, which requires Jamaican traders to choose any of the trusted binary trading brokerages from the global market.
Binary Options Trading in Japan
Japan was one of the first countries to accept the relevance of binary options trading as a viable financial product but understood the various downsides of the product to their investors. In 2013, the Financial Futures Association of Japan (FFAJ) set forward to create a stringent set of rules and guidelines to regulate the activity and make it more secure for traders. There are very few binary options brokers in Japan as a result, and the Japanese authorities have strictly forbidden its traders from investing in any foreign binary options companies. These regulations do inhibit the freedom of traders, as it’s vital for enterprises to follow all the regulations imposed by the FFAJ.
Binary Options Trading in Kenya
African nations such as Kenya are slowly emerging into the global markets at a much slower rate than some of the more developed or developing economies of the world. Therefore, companies don’t find any significant incentives for basing their operations in the country, instead opting to offer financial and other related services through an international platform. Binary options trading is not regulated in Kenya, which allows international brokers to cater to Kenyan traders without any regulatory restrictions. Although there’s a Capital Markets Authority (CMA) that is responsible for financial regulation, traders may not be able to find a regulated and approved binary options broker in Kenya. Hence, the best option for binary traders from Kenya would be to choose an international binary trading company.
Binary Options Trading in Kuwait
Kuwait is a wealthy Middle Eastern country that is packed with highly influential and affluent investors, who have a high affinity towards investing in high-risk high-yield products. The Kuwaiti government has also installed various departments to oversee the regulation of financial trading activities, which include the Central Bank of Kuwait and the Capital Markets Authority. Although the country is at the forefront of financial markets regulation for internal entities, binary options trading is largely non-regulated. There are no binary options brokers in Kuwait as such, as all traders are required to trade with an offshore binary options brokerage. Nonetheless, there are no restrictions on binary options trading, which helps traders to take full advantage of the financial product.
Binary Options Trading in Malaysia
Malaysia is one of the better known Asian countries that are quite popular in the global marketplace. While Malaysia is endowed with a booming economy, the country also has several challenges that prevent it from being at the sharp end of the financial markets. The Malaysian economy does support exotic financial instruments such as binary options trading, but these products are surprisingly not regulated by the Securities Commission of Malaysia. If you are in the market to find a binary options broker in Malaysia, you are advised to choose from any of the leading global brokers, as there are no recognized local binary trading companies that can provide a competitive package.
Binary Options Trading in Nigeria
Nigeria’s economy and the financial industry is regulated by the Central Bank of Nigeria and the Securities and Exchange Commission. Both of these agencies are responsible for almost all financial activities in the country, but as far as binary options trading is concerned, the Nigerian authorities do not specify any regulations or trading guidelines. In fact, there aren’t any prominent binary options brokers in Nigeria, with traders having to resort to offshore brokerages and EU-based brokers for their trading needs. The freedom of choosing any of their preferred binary options trading company is clearly a major advantage for Nigerian traders.
Binary Options Trading in Philippines
The Philippines has one of the highest percentages of expats living in different countries across the world. The highly populated country also faces the challenge of sustaining an above-average per capita income of its residents, which is why several Filipino traders have moved to high-risk investment alternatives such as binary options trading. The Securities and Exchange Commission (SEC) of Philippines has not regulated the activity, nor has it issued any guidelines surrounding its legality. Therefore, Philippines traders can invest in any global binary options company, without depending on a domestic broker in Philippines.
Binary Options Trading in Qatar
Qatar is another Middle Eastern country known for its wealth and is currently one of the richest in the world according to its per capita. A vast amount of its resources have been used to accumulate wealth and assets across the world, with Qatari nationals doing their best to pounce on any opportunity that promises incredible returns on their investments. Binary options trading, although a risky venture, promises excellent returns on short-term trades, which has spiked the interest of traders and investors. Finding a binary options broker in Qatar can be a tough ask, as traders can easily opt to trade with brokers that are located in other parts of the Middle East, Europe, and Asia for their trading needs.
Binary Options Trading in Russia
Russia is home to some of the wealthiest middle-class families in the world, where investors have an affinity towards all forms of financial markets throughout the world. Binary options trading is a highly popular and accepted financial product in Russia, which is even regulated and approved by the Centre of Regulation in OTC Financial Instruments & Technologies (CRFIN), the National Association of Forex Dealers, and the Central Bank of Russia. Russian traders can trade the markets through domestic binary options brokers, but recent rulings by the authorities are reducing the number of local companies to a great extent. The Russian laws do not prevent overseas brokers from offering their services to Russian traders, which ensures that the Russian binary options market is open for both local and international companies.
Binary Options Trading in Singapore
Singapore serves as the epicenter of the Asian financial markets and is an important country in the international marketplace. Despite being a small country as per geographical stature, it has a high per capita, a robust economy, and a highly developed financial industry that serves as an excellent platform for both local and international investors. The Monetary Authority of Singapore has also included binary options trading in its regulatory guidelines, and the rules clearly state that its citizens should only trade with regulated and approved binary options brokers in Singapore. It’s illegal for any company to operate without a valid license from the Singaporean authorities.
Binary Options Trading in South Africa
South Africa has the distinction of being one of the most rapidly developing nations in the African continent, aided by its access to major trade routes and relationship with other leading economies of the world. The Financial Services Board (FSB) of South Africa has been working tirelessly since the early 90s to regulate the country’s financial industry and is also one of the very few regulators that has accepted the legitimacy of binary trading by regulating binary options trading in the country. Traders can indeed find a few very reliable binary options brokers in South Africa, but the FSB guidelines are designed in such a way that traders can also opt to trade binary options with any international companies.
Binary Options Trading in South Korea
South Korea is home to some of the largest companies and manufacturers that offer high-tech gadgets, accessories, and lifestyle products to the global market. However, when it comes to financial products, South Korea has a strict policy that reserves the right to modify or regulate instruments according to the existing laws of the country. The Financial Services Commission (FSC) serves to regulate the financial industry in the nation, but there are no binary options brokers in South Korea that are directly regulated by the FSC. It does seem that choosing an offshore brokerage is the only way forward for South Korean binary options traders.
Binary Options Trading in Spain
Spain rides on its membership with the European Union, where all EEA member states can take advantage of Free Trade Agreements and cross-border sharing of services. Therefore, Spain allows binary options brokers in other parts of Europe to offer their services to Spanish traders, albeit with some restrictions. While the Comisión Nacional del Mercado de Valores (CNMV) doesn’t deal with any regulatory or licensing aspects of Spanish binary options brokers, the agency indeed ensures that all companies operating in its jurisdiction adhere to the MiFID derivatives to safeguard the rights of the Spanish investors.
Binary Options Trading in Switzerland
Switzerland is always considered as the best investment destination for financial products, mainly due to the neutral stance of the country and the excellent investor protection laws that protect both individual and institutional investors against financial abuse. There are several binary options firms that claim to be based out of Switzerland, but the Swiss Financial Market Supervisory Authority (FINMA) has warned its traders about several scam entities that are not regulated by the FINMA. Binary options brokers in this country will be provided with a Swiss license under the FINMA regulation. However, Swiss traders are also free to choose international binary options brokers, particularly those that are located in Europe and Asia-Pacific.
Binary Options Trading in Turkey
Turkey is one of the important markets in the world where products such as Forex and binary options trading are banned by the Capital Markets Board (CMB) of Turkey. The CMB has refrained from awarding a license to any company that wishes to install a binary options broker in Turkey, which has led to Turkish traders resorting to offshore and international brokerages for trading the binary options market. It’s illegal for any citizen to indulge in any such activities, but regulating international brokerages would be a tough proposition for CMB. Therefore, traders still bypass the regulations by opening an account at an international binary options company, provided such a broker caters to Turkish residents.
Binary Options Trading in the UAE
The United Arab Emirates (UAE) is a group of seven different Emirates, which include the capital city of Abu Dhabi and the highly popular Dubai, as its principal cities of interest. The UAE has long been an avid follower of the international financial markets, with Dubai bearing the title of the Financial Capital of not only the UAE but also the entire MENA region. Domestic binary options brokers in the UAE are usually regulated by the DIFC, the DFSA, and the Securities and Commodities Authority (SCA), but the country also houses branches of international binary options brokers, where traders are free to maintain trading accounts without restrictions.
Binary Options Trading in the UK
The United Kingdom is one of the very few places in the global financial market where any type of gambling, betting, and speculative products are well-accepted and approved by the regulators, provided they conform to the existing rules and guidelines. The UK’s Gaming Commission and the Financial Conduct Authority (FCA) have authorized several binary options brokers in UK to offer binary trading services to UK citizens, all the while allowing overseas companies to take part in the highly competitive marketplace as well. The UK is perhaps the best place to trade binary options, as UK companies here tend to offer the best payouts, trading platforms, and account packages.
Binary Options Trading in Ukraine
Ukraine seems to be an incredibly attractive choice for binary options brokers, as several companies have based their binary options brokerage in the country. Brokers in Ukraine don’t have to be regulated or licensed, which gives a lot of advantages to companies operating out of the country. Of course, a lack of regulation is not ideal from a trader’s perspective, but the National Securities and Stock Market Commission of Ukraine has yet to publish any laws or guidelines for binary options trading. Therefore, until there are any publications from the Government’s side, trading is completely legal in the country.
Binary Options Trading in USA
Contrary to popular belief, binary options trading is not banned in the USA. In fact, American binary options brokers have to be registered with the Commodities and Futures Trading Commission (CFTC), with regulatory oversight by the National Futures Association (NFA) and other relevant authorities. Unlike the popular binary options model, US brokers differ in their services and trading concept, as according to US laws, it’s illegal for any broker to act as a counterparty to a trader’s position. Therefore, US binary options brokers have absolutely no conflict of interest with their clients, but on the downside, the payouts are significantly lower than the returns offered by international brokers. Binary trading companies in the USA are highly regulated and are guaranteed to operate according to a transparent and secure set of guidelines.
Which Binary Options Broker Should You Choose?
There are numerous high-quality binary options brokers that are regulated by some of the best regulators in the market. Some of these companies are located in the USA, Europe, and some parts of the Asia-Pacific. Although choosing a local broker may have some undue benefits, trading with an established and popular company can certainly offer added advantages to the trader. Ultimately, traders should only choose a broker that satisfies their investment requirements, and should never try to trade with a broker by making massive compromises.
