The high rates of development of the global financial market, which has been observed over the past 5-10 years, cannot be considered a 100% positive phenomenon for its subjects. Of course, the availability of financial instruments for beginning traders, competition among brokers, the emergence of new ways to generate income, etc., suggest that the market in question is developing in the right direction, but in this case there is also a “flip side”. Among decent brokers are increasingly scammers, many of whom are able to deceive even experienced traders. At the same time, the absence of the necessary legislative base allows them to conduct criminal activities without fear of fair punishment. Another serious problem of this business is considered to be the low level of training of officials adopting laws on financial markets, its participants, instruments, etc.

Banning of high-risk transactions: CFD contracts, transactions with large leverage and binary options

Last year, the European Financial Markets and Securities Service (ESMA) virtually completely banned binary options trading and high-risk transactions. Representatives of one of the most reputable regulators in the world, explained their decision to a huge number of complaints to them from traders, in which they accused brokers of “unfair play” and numerous attempts to deceive their clients. Rather strange accusations, given the fact that any brokerage company’s web site always contains warnings that trading binary options is a high-risk operation, which often results in the loss of large sums of money. Together with binary options, CFD contracts and deals with large leverage were banned.

Around the same time, binary options acquired the status of illegal transactions in Israel, the United States, Canada, China, Turkey and in the countries of the Middle East. Against the background of the events under consideration, the further “fate” of binary options seemed absolutely unpromising. But, as you know, if there is a demand for some product or service, it means that very soon it will be satisfied.

The first thing binary brokers have noticed is traditional offshore companies. Registering a company on some cozy island allowed you to work online, providing access to binary options prohibited in the EU. At the same time, the owner of the company was within the legal framework and was not afraid of unpleasant “surprises”. It would seem that all the problem is solved. But not everything is so simple. Very soon, marketers from various brokerage firms came to the conclusion that potential customers, despite unmet demand, do not want to risk cooperating with similar trading platforms. After all, firms registered in offshore zones, as a rule, do not have licenses and permits of well-known regulators. That is, the decision of almost any disputable situation is carried out between the broker and his client independently, without the intervention of reputable regulators (it is not difficult to guess the outcome of such a dispute).

But the solution to the problem is not limited to the registration of a trading platform in the Bahamas or in the state of Belize. By opening a brokerage company outside the EU and the above countries, you can organize a legal business that allows you to provide services to European traders, working within the framework of national and international legislation. This can be done in Japan, Switzerland, Australia, as well as in some countries that emerged on the territory of the former Soviet republics in the 90s. last century.

The most famous binary brokers

For more convenient analysis of brokerage companies that continue to work with binary options, consider the following data:

 

the impact of the ban on binary options in Europe on their popularity

 

Most of the representatives of the business in question are “registered” in offshore zones. But, given the fact that they work for a long period of time, and they already have an established customer base, they do not have to worry about attracting new traders.

Attentive readers most likely noticed that among the brokerage companies represented there is a trading platform (known to experienced online trading participants), which continues to trade in binary options, despite the English registration. Such an example can be regarded as the real attitude of the inhabitants of Foggy Albion to the EU bans. That is, the British have firmly decided to leave the union, and the situation that is observed in the first quarter of 2019 is most likely related to the discussion of conditions, many of which will be hidden for a long time from citizens of Great Britain and the EU.

Let’s summarize the presented research. Despite the above information about binary options, in early 2019 there is a serious change in attitude towards the issue under consideration. ESMA already allows the use of this financial instrument, subject to certain requirements (but more often, there is an individual approach to the participants of trading with binary options). Many analysts believe that by the end of summer – early autumn of 2019, we will see a dramatic change in the situation around binary options.

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.”

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