The development of the global financial market and the great popularity of online trading have become the main reason for the emergence of a huge number of trading platforms in 2010-2016. During this period, almost every week, dozens of new brokerage companies were registered, which actively fought for their niche in the global market. The willingness of potential investors to invest financial resources in promising projects allowed brokers to actively develop their business using a variety of methods to deal with competitors.

If we trace all the stages of the formation of the represented segment of financial markets, we can conclude that this process was carried out according to the standard scheme, in accordance with the classical laws of a market economy. At the beginning of the 21st century, representatives of the target audience are increasingly showing interest in services that make it possible to work with financial instruments. The growth in demand for these services has stimulated the process of creating new brokerage companies, and as a result of competition, weak brokers left the market.

 

New binary options trading platforms 2018-2019

 

What factors influence the creation of new trading platforms

Nowadays, existing binary options brokers fully satisfy the traders demand for the services provided (the ability to carry out operations with BO). This factor can be considered the main reason for the fact that in 2018-2019. No registration of new trading platforms. Although some traders claim that for the last 2 years there have been isolated cases of registration of brokerage firms, but most of them are associated with the reorganization of existing companies.

Why are entrepreneurs, financiers and investors practically not interested in creating new trading platforms?

    • The popularity of online trading, as well as the ability to work with the help of the Internet, while maintaining anonymity, has led to the widespread fraudulent operations in this area of ​​activity. When choosing a broker, traders always pay attention to the “age” of the service. The company offering the most favorable terms of cooperation, but registered in 2018 or 2019, loses even to a broker with huge commissions, which provides services for 10-15 years.

    • In order to create a high-quality web resource (on which all operations with binary options will be carried out), and then to organize an advertising campaign, substantial investments are required. Given the high level of competition in this field of activity, it is unlikely that anyone will want to risk investing money in the creation and development of a brokerage company.

    • Uncertain legal status of BO in many countries of the world. You can create a profitable business, build your own customer base, and at this time, officials will pass a law prohibiting binary options, as a result, a promising project will end in bankruptcy.

    • Another nuance is that in some countries BOs are classified as gambling, and this business is always associated with a huge number of different nuances (taxation, accounting, licensing, etc.).

    • The need to obtain a license and other documents authorizing the provision of these services. It should be remembered that the licenses of reputable regulators are expensive, and cheap documents do not cause much confidence among traders and regulatory agencies.

    • With a competent marketing policy and availability of start-up capital, it is realistic to organize the work of a trading platform that specializes in binary options. But in this case, there is a possibility that fraudsters use your service (a similar website with a consonant name is created) to implement their scams. This situation can lead to the most disastrous consequences.

Attitude to binary options in different countries

Operations with binary options, even if they are carried out on a legal trading platform, are classified as highly risky. It was this factor that became the main argument of the European Financial Markets and Securities Board, explaining the decision to ban binary options in the European Union, which was made in 2018. Naturally, law-abiding Europe will not violate this prohibition, that is, no one will create a platform for binary options, as long as legal restrictions exist.

In Israel, these tools are not simply prohibited, any operations with BO are considered to be criminal offenses. This argument is quite convincing, it is unlikely anyone would agree to exchange freedom for the dubious pleasure of becoming the owner of a brokerage firm specializing in BO.

On the territory of the former Soviet republics, legislation regulating the status of BO is almost completely absent. This situation is not conducive to attracting investors for projects related to BO.

In principle, if you wish, you can safely register a company in the offshore zone (for example, in Cyprus, where you can get a license from a local regulator) and work in peace. Moreover, the uncertainty associated with the BO allows the platform owner to use different methods to increase their profits without violating the rules established by the regulator. But why all these difficulties, if you can use the start-up capital for the implementation of other projects.

After weighing all the pros and cons, we can conclude that the trading platform for conducting operations with binary options is not the best way to create a reliable source of stable income. This factor, combined with the presence of companies that have managed to organize a legal business in this direction, explains why today no one wants to get involved in BO.

However, the binary options industry does not stand despite all the above factors and the past. Many of the major forex brokers are actively introducing options trading, as an addition to an existing platform. Also launched polygamy projects that offer options trading based on blockchain technology. The development of digital and fx options also has a positive effect on the industry. Most of the new trading platforms can be found in our binary options broker rating.

TRADE OPTIONS

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Have new binary options trading platforms appeared at the end of 2018 and beginning of 2019?
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