Binary Options Regulation in 2020

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7 Binary Options

What is Binary?

The world “binary” means “something that has two parts”. And this is exactly how binary options trading is different from any other trading methods: it has only two possible outcomes – either a complete loss or a complete win. There is nothing in between. Underlying assets may include any currency, stocks, commodities such as gold, indices, etc. In the business world, the binary options trading is a simple way to put your knowledge of the market and its fluctuations to use and take advantage of it by buying put or call.

Need for Regulations

Binary options trading has become increasingly popular around the world and is currently is one of the biggest online trading activities. Traders enjoy this simple way of making money by simply predicting the movements of underlying asset prices. Unfortunately, fraudulent brokers are trying to catch up with the industry growth at the equal pace and rob those less experienced trades of their hard-earned money. To combat this disturbing tendency, many governments decided to implement various regulations to assure all traders have equal opportunity to trade safely and not worry about scams and unreliable brokers.

By now, most countries have their own regulatory bodies that control and issue licenses to binary options brokers operating in that particular countries. Some countries such as the European Union member states accept regulations by other countries. For instance, the most influential and powerful regulatory body in the EU is CySEC (The Cyprus Securities and Exchange Commission), which is located in Cyprus.

Some fraudulent brokers might falsely claim that they have a license issued in some particular country. But the truth is that it’s always the responsibility of a trader to double check and make sure that the broker they have decided to trade with has a valid license and therefore has passed all the necessary procedures and proved to be trustworthy.

Binary options trading industry can be tempting to less experienced traders that hope to earn a lot of money very fast without putting much effort. The reason for this might be the deceptive simplicity of binary options trading. With the choice being a plain “yes” or “no” it is easy to assume that there is nothing much to know. But nevertheless, it is proven that educating oneself about the possibilities on the market as well as various threats when trading is crucial to succeeding in binary options.

Therefore, there has been an increasing need to control the industry and help traders figure out which broker or trading software they can trust. It is necessary to protect investors’ funds from a plain robbery which some fraudulent brokers simply are. So how do those regulatory systems looks like in different countries and what do they exactly do? Let’s try to answer these questions together.

Regulation in the US

In the USA, the federal securities laws do not allow any company to offer or even sell securities unless they are registered with SEC (Securities and Exchange Commission) or there is an exception under which they don’t have to follow with this registration. The binary options contract terms are just the same: unless a registration with SEC is done or an exception is created, the sale of any options is considered illegal.

Nevertheless, some binary options related companies still operate as unregistered brokers or dealers. Any person has to register with SEC in case they provide any services associated with financial transactions or even being a third party to any sort of financial operation.

Another company called NADEX (North American Derivative Exchange) is a CFTC regulated exchange and simply acts to match buyers and sellers. When a binary trade takes place on the exchange where the buyer and seller agree on price, the exchange will charge a small exchange fee for the transaction on each contract executed. In our opinion, Nadex by far has the largest binary option presence in the US.

CFTC Binary Options Regulation

CFTC (Commodity Futures Trading Commission) regulates the US companies under the act of Commodity Exchange. Any company or an individual that provide trade-related services or give advice on trading in the USA have to be registered with National Futures Association (NFA). CFTC, however, assures transparency and open market for everyone in the industry.

Regulation in Europe

In Europe, the situation is quite different. The institution called CySEC (or The Cyprus Securities and Exchange Commission) that we had mentioned earlier is definitely the most influential binary options regulatory body in the region.

Since Cyprus does not have the strongest economies in the region, it is often thought that there is not much of financial regulatory regime in place and it is easy to invest there. However, the reason for investments in Cyprus being popular is the low taxes there. So brokers registered there actually enjoy many benefits just as other financial companies. Those attractive benefits being bonuses and very professional treatment. But the regulations are tough here too: any broker registered with CySEC undergoes complicated procedures and frequent checks in order to be licensed. We often hear of warnings being issued to those brokers that hadn’t met the requirements. At the same time, in our Broker section, we list many brokers that are CySEC licensed and therefore highly reliable to trade with.

Best Binary Options Brokers 2020:
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    Free Demo Account!
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  • Binomo
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Regulation in Australia

A big number of binary options traders comes from Australia as well as many recommended brokers. Australian Securities and Investment Commission is the regulatory body in this region. Any broker or binary options related company operated in the region has to be additionally registered with Australian Finance Services.

Australian traders are also allowed to trade with brokers that are registered in New Zealand. Australian traders are well-known for being highly educated about the industry, trading with high deposits and being very successful in their trading.

Regulation in the UK

The UK has always been known as number one when it comes to Forex trading . And since binary options trading is quite similar, it has also enjoyed a lot of attention here. Also, regulations here are very favorable to traders. UK-based binary options traders are free to work with UK-regulated brokers as well as the brokers that are regulated by any other regulatory body in the European Union.

Previously, binary options trading in the UK was handled by the gambling commission. But since 2020 it is regulated by FCA (Financial Conduct Authority, FCA). At the moment the entire country, however, is undergoing the transition period and we are eager to see what the outcomes will be like.

Regulation in France

In France, binary options are neither illegal nor regulated. Some binary options brokers were banned by The French Financial Markets Authority (AMF – Autorité des marchés financiers) in the past. But at the moment the industry remains a gray area that is yet to become more established here.

Regulation in New Zealand

The authorities of New Zealand have made a step towards binary options traders and not only made binary options trading legal but also did a great job in regulating and assessing the industry. The Financial Markets Authority (FMA) is the regulatory body responsible for assuring binary options is safe and secure in the region.

Regulation in Italy

Finally, the official Italian binary options regulator is called CONSOB. In this aspect, the Italian authorities are quite strict with their regulations and approval. In the past, companies trying to operate without an appropriate authorization in the region were issued fines that reached up to €500,000. Every broker in Italy has to undergo the necessary procedures and obtain a CONSOB license.

CONCLUSION

In the modern binary options industry that keeps growing day by day, the regulations are not only needed but necessary. But apart from any measures that individual countries or regions are undertaking to assure their traders are safe, the traders themselves have to educate themselves and stay informed about all the nuances when it comes to legal matter.

HighLow Binary Options Review 2020

HighLow Binary Options Review

There are many good brokers in the binary options business, but some are just better than the rest. In this HighLow Binary Options review, we’ll introduce you to one of the finest brokers we’ve had the opportunity to test so far. This is a brokerage company from Australia, which started operating in 2020 and which has with many loyal traders all around the world. In this analysis, we’ll present you with everything you need to know about them – you will be introduced to their trading platform, monetary transaction rules, regulation and so on. If you’re about to enter the world of binary options or are just looking for a new broker, you should definitely read this!

HighLow Binary Options Review | Trading Platform

At the beginning of this HighLow Binary Options reviewex, we will talk about the part of the broker’s offer on which your trading experience will be based – the trading platform. We tested this broker’s trading platform ourselves and we are happy to say that we are very satisfied with how it works. It is based on MarketsPulse trading software and it’s very quick: it processes all your actions in a blink of an eye, so time definitely won’t be a problem. Apart from that, it is also very user-friendly – designers have made the interface very intuitive so that everything of importance can be noticed very easily. In addition, there are many useful analytical tools you can use, so you’ll always be able to calculate your odds and make the right move.

There are several trading modes the platform has to offer. First of all, there’s the ordinary HighLow mode, which is essentially the basic trading mode with payouts of up to 90%. Then we have the “HighLow Spread” mode, a standard spread mode with payouts going up to 200%. Given that you can invest between 10 and 2000 dollars per trade, this is especially good for traders who want to invest in big market movements. The “Turbo” mode allows you to choose between various short time frames (from 30 seconds to 5 minutes). If you like the rush of adrenaline and quick thinking, this might be the perfect option for you! This mode also has its Spread version, if you’d like an even bigger challenge. But our HighLow Binary Options review wouldn’t be complete if we failed to mention that this platform also comes as an app. You can find it at the App Store or Google Play, so if you want to trade on the go, this is the best option for you!

HighLow Binary Options Trading Platform

In the next paragraph of this HighLow Binary Options review, we will take a look at the tools that can help you trade more efficiently. Stay tuned.

HighLow Binary Options Review | Strategy

In order to be an efficient trader, you will need a reliable strategy. HighLow can help you come up with that strategy by providing various educational resources. Apart from the FAQ section, these include a detailed platform walkthrough, educational videos and a glossary of the most common trading terms.

The platform tour is actually very intriguingly designed. A series of short, but very clear tooltips will appear on a mock platform, showing you what you need to pay attention to when once you complete the login. This is an excellent and a very intuitive way to learn, especially for beginners, because you are not burdened by a huge amount of new information. Everything is kept short and sweet, so you can quickly grasp the idea behind it.

In addition to this, as mentioned, there are also some HighLow videos for you to enjoy. They don’t last more than a couple of minutes and also maintain the same high level of clarity as the platform walkthrough. Once you go through all of this, you should have the necessary theoretical knowledge needed to start opening successful trades on this website. In other words, you can start building your strategy.

However, there is one more very important aspect to it and that’s the possibility of using HighLow signals. You see, every trader who opens an account and makes a minimum deposit will be eligible to receive signals from the broker completely free. This feature can be a potential lifesaver in situations when you’re unable to decide on how to invest. All signals are created by the company’s own experts and you don’t have to download anything to receive them. They can be delivered to you by SMS, e-mails or directly to your trading account, depending on your preferences.

This is, without a doubt, an excellent feature which many traders will be love. Of course, you are not obligated to trade according to these signals, but it’s always nice to have some kind a suggestion to turn to. This HighLow review has a lot more ground to cover, though, so we should get going. The available money transfer methods are next, so don’t go away.

HighLow Binary Options Review | Transfers

There are plenty of payment methods to choose from when you want to fund your trading account. Your options include credit cards (Visa or MasterCard), Neteller (e-wallet), bank transfers and some alternative payment methods such as GiroPay, Poli, Sofort and PaysafeCard. What is particularly important to mention in this HighLow review is the fact that you can make your HighLow deposit in Bitcoin, as well. As for the more conventional currencies, you can trade with the AUD, GBP, EUR, JPY, CNY and USD, but the exact choice will depend on where you live. For example, if you’re in New Zealand you won’t be able to use AUD, if you’re in Indonesia you can’t use GBP etc.

At this point, we should probably also mention some numbers concerning the transactions. First of all, it’s good to know that the HighLow minimum deposit is set to only 50$ for most traders, but if you’re an Australian citizen your HighLow minimum deposit requirement is only 10$! This is one of the lowest requirements in the whole industry and is what makes trading here affordable to almost anyone. In addition, since the minimum trade is only 10$, even the minimum deposit will provide you with a decent number of chances to strike it rich. As for the withdrawal, the minimum requirement is also $50, but what is important to mention here is that bank withdrawals are processed twice a day, which ensures high efficiency and fast execution of all requests.

HighLow Binary Options Withdrawal Methods

However, you don’t have to invest money to test this broker out. That’s right: on the broker’s website, you find a button to open your HighLow Binary Options Demo Account absolutely free! Just click on it and you will be taken to the practice platform immediately – you don’t even have to create a profile!

But if you think that all these money transfers we mention in this part of our HighLow Binary Options review are the only way to get trading funds, the next paragraph will be a very pleasant surprise for you.

HighLow Binary Options Review | Bonus policy

There are several very interesting options when it comes to High Low bonus options, and some of them are not that easy to find in the industry. The whole policy revolves around cashbacks, which are very special when you compare them to the bonuses other brokers offer because they can be withdrawn immediately with no strings attached. You will start receiving your first cashback as soon as you complete your first trade and it will be worth 50$ in total – for each of your first five trades, you will get 10$ back. That’s a really great welcome bonus, but there is even more here to enjoy.

You see, as you trade, you will accrue HighLow Points based on how big the volume of your trades is. There are four tiers of this system you can reach and each one will yield a bigger number of points per 10$ invested. At the end of each month, your points are divided by 100 and the number you get becomes your cashback amount. It will be delivered to your account on the first trading day of the next month.

Occasionally, you can even catch special promotions if you keep your eyes open. These will usually also be cashbacks of some sort, so coming back to the website regularly certainly seems like a good idea. You may be wondering, however, is all of this legit and if a broker with a policy like this can really be trusted. The following part of our HighLow review will show you that there is nothing to worry about. Keep reading!

HighLow Binary Options Review | Fully regulated

The last, but definitely not the least important element that we are going to write about here in our HighLow Binary Options review is the broker’s security system. If you know anything about online trading, you know that security is vital for both yours and your broker’s success. Fortunately, with HighLow Binary Options you have nothing to worry about.

HighLow Binary Options Regulation

As we have also mentioned in our Is HighLow Binary Options a Scam? analysis, this broker is regulated by the Australian Securities and Investment Commission (ASIC). This means that the company has to follow some very strict international monetary rules. Apart from that, they must also keep the clients’ funds in segregated accounts, so that these funds cannot be used by anyone else except the trader. The broker also may not initiate any speculative positions in the market. All in all, we can say that HighLow is a very professional and reliable broker and we are very satisfied by the way our money was treated on this website. Unsurprisingly, because the people who work here are very professional, too. We have more on that in the next part of this High Low review, so stay with us just a little bit longer.

HighLow Binary Options Review | Contact and support

A broker can benefit a lot from providing high-quality support to its clients. They will see that they can count on the company to help them out whenever they need it and will return more often to the company’s website to trade because of it. HighLow is well aware of that, which is why they invested a lot in training their support staff. The result is a group of people with a vast trading knowledge ready to answer any of your questions.

HighLow contact methods include phone calls and support tickets as their main means of communication, but you can also find them on social networks like Facebook, Twitter, LinkedIn and even Google+. The answers come quickly and will not bore you with unnecessary details. Here we would like to point out that you can also consult an extensive FAQ section on the website, as well as the fact that HighLow is also quite popular outside Australia, for example in India and Singapore. But is everything really that good on this website? Are there any objections to the way this website functions? We analyze that next in this HighLow Binary Options review.

HighLow Binary Options Review | Complaints

Are there any HighLow complaints? Well, you’ll pretty much always find complaints about a broker, no matter how well they’re doing their job. So yes, we have encountered some HighLow complaints, but they need to be discussed.
If you have read the entire guide so far, you can pretty much see that our impressions are mostly positive. We actually managed to talk to some traders who trade here regularly and most of them gave us the exact same feedback. These are seasoned traders, mind you, not people who have just entered the trading industry. It is actually from newcomers that most of the criticism against brokers in general usually comes because these people usually have unrealistic expectations and forget that the brokers are here to make money, too. They think that a few clicks are enough to get rich and don’t intend to put any effort into it. When they see that this is not the case, they start complaining and that’s where most HighLow complaints come from. They are often ridiculous and serve just as a way to vent frustration after people lose. For example, we actually heard a complaint that the company is able to control the market and tilt it to its favor. We can honestly say that we had absolutely no withdrawal problems with HighLow and no trouble whatsoever with its platform. With that statement, the only thing left for us to do is to conclude this article on a positive note.

HighLow Binary Options Review | Conclusion

There’s not much left to say in this review, so we’ll just mention one more time everything we think is relevant. First, if you want to sign in here, the process is very simple and does not require a lot of funds. The HighLow minimum deposit is only 50$, but it can drop even more if you’re an Australian citizen, and you can choose between various payment methods. On top of that, there’s also the possibility of practicing for free via demo account. It will help you get to know the company’s trading platform and explore the many trading options it has to offer. And yeah, the broker is fully regulated and completely safe and has been operating on the market for years now without any problems. Therefore, we can definitely conclude our HighLow Binary Options review on a positive note. Open your trading account right here and you will get yourself a great trading partner.

Binary Options Regulations

Binary Broker Reviews and News & How to Get Money Back From Scams

IMPORTANT UPDATE AND WARNING:

We have recently received complaints and read many negative reviews on the internet about regulated binary options brokers using indecent practice towards traders. Although some binary brokers may be regulated, we do not recommend opening a trading account with ANY broker, be it a regulated broker or a non regulated broker, as THEY ALL seem to be unethical and non-trustworthy, even the regulated ones! If you have been scammed by such a company you can check out our RECOVER FUNDS FROM BINARY SCAMS section.

Also, instead of trading binaries which are mostly scams, you can trade with a trustworthy and popular FOREX broker such as TradeFred.

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Binary Options Regulations

The most noted binary options regulator is CySEC (Cyprus Securities Exchange Commission) which regulates binary options trading in the European Union. In many countries binary options have been banned do to a high number of fraud in this market.

CySEC is currently the largest regulatory agency in the financial markets and has issued just over 20 licenses to binary options brokers out of more than 250. Those brokers that have been licensed by Cypriot watchdog have an advantage in that traders are more confident that their interests are protected and so they tend to prefer to transact business with regulated brokers.

In Russia binary options are regulated by the Bank of Russia and in Belgium by the FSMA. The Australian watch-dog is called ASIC.

In South Africa the FSB has regulated and licensed AnyOption. When binary options trading just begun to take off, it was not a regulated practice. However, with the development of binary options trading, there has since been the introduction of binary options regulations. These regulations were implemented as a way of protecting traders from scamming and also as a means of stemming the occurrence of unfair trading practices. Once some brokers discovered the tremendous earning potential of binary options, they began to abuse the system and to rob traders by not allowing them to withdraw their trading returns or by making the process extremely difficult. Thanks to the introduction of regulators, brokers and traders now feel more confident when trading in binary options.

Some of the more popular regulated brokers include Stockpair, 24Option, NADEX, AnyOption and TopOption. Other benefits of regulation include the compulsory segregation of broker’s and trader’s funds as well as access to formal dispute regulation for traders who have that need. The regulators also conduct suitability checks to ensure that the products offered by regulated brokers are not misrepresented. The biggest impact that binary options regulation has had on binary options trading is that it has raised the confidence level among investors and traders. Brokers also benefit from increased business.

What Does it Mean to Have Binary Options Regulated?

Up until very recently, it was not the norm to have binary options regulated. In fact, binary options trading had been unregulated for quite a while until about 2008/2009 when regulators began to start taking steps to protect investors. When binary options began to take off in those earlier days, many regarded the practice as gambling and in some jurisdictions such as the UK, the industry was regulated by the Gaming Commission. However, things have changed quite a bit and now regulation is available for binary options traders.

Regulated Binary Options Online Trading

It must be noted that regulation is not mandatory. Unregulated brokers can choose whether they want to be regulated or not. At the same time, the ultimate decision to regulate rests with the regulator who may choose not to regulate a provider for whatever reasons. However, it is usually in the broker’s best interest to agree to regulation. This is because it has been shown that traders tend to have more confidence when trading with regulated providers. This means that regulated brokers are likely to get the bulk share of the market while unregulated brokers get what’s left.

Regulation means that brokers will come under the scrutiny of the regulator and they will have to abide by certain rules and principles in their trading processes. All systems and processes including the trading platform that regulated brokers are using will have to meet certain standards before any licenses will be issued. This reduces the likelihood of scamming and fraud among binary options brokers and also provides greater levels of protection for traders who may file disputes. Normally, regulated brokers are required to have separate account for client funds which creates greater transparency and trust. Currently, the most active regulator is the Cyrus Securities Exchange Commission (CySEC) which is regulating more than 20 brokers.

The Best Binary Options Platforms

There are so many binary options technology platform providers that it is sometimes difficult to decide which one is best from a broker’s viewpoint. Nevertheless, there are some names that keep popping up whenever one mentions binary options. Among the list of top providers are SpotOption, Tradologic, Hello Markets, Markets Pulse, TechFinancials, Panda, O-Systems, AirSoft, BinaryStation and TradeSmarter. While these platforms are similar in several respects, some of them stand out based on the uniqueness of the technology that they utilize and their reputation.

SpotOption is a very popular and well respected platform that is supported by proprietary software. Based on its long time existence, SpotOption has the advantage of experience in the market. Therefore, they have tailored their system to expertly meet the demands of brokers over the years. In fact, SpotOption now claims to control as much as 70% of the binary options market; serving more than 250 brands worldwide. This platform is also among the most versatile in the world today.

TechFinancials also stands out from the other platforms being the very first and only binary options provider to be listed on the London Stock Exchange AIM market. This speaks volumes for how well respected this platform is in the marketplace as well as to its innovative trading technology. TechFinancials public listing makes this platform among the most trusted and reliable in existence.

When shopping around for the right binary options technology platform, reputation should be among the priority features. While some newer platforms have not had ample opportunity to establish themselves in the market yet, the older, more well-known platforms will continue to be at an advantage. However, newer platforms can gain leverage by utilizing unique technologies that better meet the demands of users. Knowing the market well will help where that is concerned.

Getting Started With Binary Options

What are binary options? Binary options are special types of options in which there are only two possible payoffs – a fixed amount or nothing at all. So with binary options trading, you either gain or you lose everything. This makes binary options trading somewhat risky but the rewards may also be very attractive. Like regular options, these types of options derive their value from some underlying asset such as a stock, index, currency or commodity. Gains are made when the underlying asset makes a gain. On the other hand, everything is lost when the underlying asset records a loss. When a trader believes that the value of the underlying asset will rise, that is called a “call” option. When that trader believes that the value of the underlying asset will fall, that is called a “put” option.

Trading of binary options may be done through online platforms or locally through platforms located on a broker’s computer system. Online trading has become a very popular way to trade because of the convenience and ease of trading that it provides. Most online trading platforms allow you to open an account by just providing some basic information such as email address and a password.

Many platforms allow traders to set up demo accounts with which they can learn how to navigate the platform and how to execute trades without actually investing any funds. Once the trader is comfortable with the demo account, he can then open a real account and begin trading. Many platforms require traders to invest a minimum amount. In addition, traders usually have access the charting information as well as to educational resources designed to help them become better traders. Getting started is relatively simple. However, those traders who are new to the practice, should take advantage of demo accounts which will help them to better understand trading.

Regulation

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Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Perfect Choice For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sing-Up Bonus Now!

  • Binomo
    Binomo

    Only For Experienced Traders!

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