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The outgoing year has significantly changed the situation on the binary options market. The European Office ESMA finally introduced restrictive measures for brokers in this area of ​​over-the-counter trading. This was preceded by the complete absence of any kind of regulation, due to which the financial losses of retail clients of Forex brokers, binary options and CFDs were enormous.

What bans were imposed by ESMA?

Since July 2018, a ban has been imposed on the activities of retail brokers and dealing centers in the European Union, including the direction of binary options. Thus, every European citizen is no longer able to register and engage in trading on European sites. However, the ban bypassed those brokers who are registered in offshore zones – in Asia, Australia, and Switzerland, where conditions for regulating financial markets have long been created.

A number of financial experts and many traders were fundamentally disagree with the actions of the ESMA, since the market situation did not become better with their measures. Along with clients, reliable forex companies that have been operating for many years and have a positive reputation have suffered. The alternative as offshore brokers hardly saves the day, since the risk of losing money in them is even higher.

At the same time, binary options trading remained available for a certain group of traders who have professional status. But to get this status turned out to be by far not everyone, because very few people have an annual turnover on transactions exceeding 500 thousand pounds.

By the way, the restrictions have the prefix “temporary”, which gives some hope to interested market participants. But there is practically no chance that the market will return to its former condition, with the scam shook out of there.

 

State and forecasts of the binary options industry for 2018-2019

 

Where did the negative attitude to the binary options market come from?

As mentioned at the beginning of the article, the negative surrounding the binary options market did not just appear. The enterprising Israeli developers of pseudo-trading platforms once filled the market. The essence of their work was as follows: by hook or by crook, force the trader to register with them and invest money in a promising direction of trade, after which, using clever software, to make the client stay with zero on the balance sheet.

For a while, unsuspecting clients from all over the world enriched fraudsters hiding behind brokering activities, but when the interests of American citizens were affected, the US security forces entered into the matter. As a result, many of yesterday’s pseudo-brokers executives are now in the dock, and against this background, the ESMA has imposed the same bans, killing an entire segment of trading on stock markets for European citizens.

How do brokers work after the ban?

After a ban of binary options ESMA, brokers began to explore the markets of countries outside the European Union. But for traders from Russia, nothing has changed, although in this country attempts are made from time to time to regulate previously unregulated financial areas.

But if we consider that Russia is not part of the EU, then European traders can use the services of brokers registered in the Russian Federation. With the exception of Israel, where a legal ban on any binary options after the hype with the fraud of Israeli brokers. By the way, US citizens also no longer have access to this direction of over-the-counter trading, for obvious reasons.

From Russian brokers attention is available a few. One of the best trading platforms today is offered by the company Binarium, which was founded in 2012. All these years, the developers of the trading platform have been systematically developing their product, winning customers like those familiar with trading, and those who are just interested and decided to learn option trading.

On Binarium optimal conditions for work are created – an accessible entrance with a deposit of $ 10. The minimum size of one investment in the forecast for a change in the rate is only $ 1. For the operations of depositing and withdrawing funds, the most popular payment systems are connected to the trading platform. The minimum payout is $ 5.

Among the limitations of ESMA was a ban on all types of financial incentives – including bonuses. Binarium, which does not fall within the jurisdiction of the European Union, still charges new customers a bonus of 100% on their first deposit. There are also no deposit bonuses, which can be obtained by participating in promotions regularly held by the company in social networks.

Experienced traders highly appreciate the Binarium terminal – it is characterized by high speed, which is important in turbo trading, and is equipped with all the necessary indicators of technical analysis. There are applications for even more effective trading – signals from a professional trader in the “Trading Room” and trend monitoring (the “Trends” application).

Binary Options and Cryptocurrencies

For European citizens, all was not lost, as there were new areas of trade, such as Forex options and cryptocurrency binary options based on smart contracts. The latter is still in an embryonic state and is dangerous for inexperienced traders, since cryptocurrency is even more common fraud and lies for taking money from the public. But there is a prospect in 2019 in this direction, and now we will tell why.

Considering the BO market in general, we can say that traders always play against a broker. They offer their forecasts for price changes, but the system is designed so that regardless of the volume of transactions in two directions, the broker always remains in the black. Therefore, trading binary options, we are witnessing a dynamic decline in profits, the closing of trading pairs for trading and other things.

The developers of the Ethereum blockchain-based trading platform offer to change the concept of binary options and play not against the broker, but against each other. Then a number of restrictions that clients of classic BO platforms had to face, simply disappear.

Smart contracts in binary options can bring the market to a new level. From the funds invested by traders, a common cash desk is formed, bypassing the pocket of an intermediary broker. No one has access to this box office at all, so there is no temptation for anyone to appropriate it to themselves, citing violations of the rules and the use of system errors.

Payments are made automatically, going straight to Ethereum’s personal wallet account. From there, funds are invested in trade, without standard recharge. The developers of a crypto-broker, in turn, are content only with a turnover commission. Given the prospects of this direction, this commission will be more than enough for cryptogeny.

But let us emphasize once again that this trend is still very young, and what is being offered on the market now is far from possible perfection. However, a start has been made, and in 2019, binary options on Ethereum smart contracts will surely occupy their niche.

Binary Options Forecast for 2019

After the ESMA ban, large brokers did not abandon binary options and continue to support this area. They are actively seeking to take laxative measures from the regulator, however, their attempts have come to nothing. It is likely that in 2019 the picture with traditional binary options will not change.

Under such conditions, brokers are unlikely to limit themselves to entering non-European markets, as it is short-sighted to let the “target” audience “fed” for years. Therefore, brokers have no choice but to master new technological capabilities. Possessing significant resources, they should contribute to the development of binary options based on smart contracts.

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.”

State and forecasts of the binary options industry
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