Binary Options Legal in Australia

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Binary Options Australia

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By Brianna Evans
Post date

We are going to give you a reassuring answer right of the bat: Yes, Binary Options are perfectly legal in most countries. But before we delve deeper into the realm of dynamic and highly profitable Binary Options trading, let’s try to understand the very reason this question arises in the minds of newcomer investors and traders all over the world.

Like any high-volume market, Binary Options trading attracts the attention of some unwelcome parties. They try to cash in on unsuspecting traders by scamming them into various shady schemes and false endeavors, harming the entire industry reputation in the process. Thus, people interested in finding a new source of income become skeptical about the whole thing.

Now with that out of the way, let us advocate the idea of Binary Options trading as a sound additional income source. In recent years the majority of governments came up with Binary Options trading regulations which ensure clear and fair rules for everyone. Binary Options brokers that handle the trading process are not just private companies, they are accountable to financial governmental bodies, including British FCA, U.S. CFTC, and Australian Securities and Investments Commissions. That’s right, Binary Options trading is legal in Australia, known for its strict CFD trading laws.

Naturally, not every Binary Options broker is perfect, so you might want to do some research before committing any money to trading. If you’re searching for a solid Binary options broker you can trust, please take a look at our list aimed at helping you find the right one:

Examine the broker’s website for legal information. This includes the license number and its issuer, the jurisdiction the broker is allowed to operate in, user T&C, as well as anything that might further corroborate the broker’s reliability. There are many legal Binary Options brokers there, just keep looking.

Check what other traders say online. Surely, we don’t have to point this out but stay away from the broker website’s testimonial section if there is one. Try to find a third-party website that aggregates Binary Options broker opinions and reviews.

Learn the type of platform the broker is using. Brokers are numerous, but the number of Binary Options trading platforms they utilize is way smaller. If a broker features a well-known and secure trading platform, it is likely trustworthy.

We hope that after this little clarification the question “are binary options legal?” no longer persists in your head, and that you will be able to find a trusted partner on your Binary Options trading journey.

You can find more brokers and find one that suit your needs by clicking here.

What are binary options?

Traditional binary options are options that pay a predetermined amount of money if they expire in the money. This distinguishes them from ordinary options, where the option holder can not know in advance how large the profit (if any) will be if the option expires in the money. Binary options are called binary since the investor either makes a profit or lose the entire stake – there is no sliding scale.

Many investors appreciate this clear identification of risk and possible reward. You know exactly what you stand to lose and exactly how much you can gain. With other types of investments, such sinking your money into real estate, the risk/reward is left open to circumstances until you finally close the position and realize your profit or your loss.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Options Broker 2020!
    Great Choice For Beginners!
    Free Trading Education!
    Free Demo Account 1000$!
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Only For Experienced Traders!

You can read more about how different types of binary works here. The website is targeted towards the UK market but all general information is valid for Australian traders as well.

How much money can I make?

The return on a binary option that expires in the money is typically between 65% and 95% depending on the risk profile. You always know before you purchase the binary option exactly how large the payout will be if it expires in the money. As always, high-risk tend goes hand in hand with the possibility of a high-yield.

Binary options are always cash-settled

Some ordinary options actually give the holder a right to buy and take possession of something, such as 100 shares in Apple Inc or a certain amount of gold. This is never the case with binary options. All binary options are cash settled, and some of them aren’t even based on something that you can take possession of. Many binary options are based on equity, a commodity or a foreign currency, but there are also those which are based on an index, or an exchange rate, or something similarly intangible. Virtually any unpredictable event can be the underlying “asset” of a binary option.

Binary options in Australia

In Australia, binary options are classified as derivatives under the Corporations Act. They are thus financial products and any entity that deals in binary options in Australia is required to hold a license from the Australian Financial Services (AFS) or be authorised by an AFS licensee.

The Australian Securities & Investments Commission (ASIC) has a professional register available online where you can check if an entity holds the required license.

Australia is one of the trailblazers when it comes to fully recognizing binary options as financial products, rather than regulate them as games of hazard, leave them to be largely unregulated or ban them. From a consumer perspective, the Australian stand is positive since it means stronger consumer protection. It is also good news for the serious and reputable binary option providers online that, thanks to the stringent Australian requirements, doesn’t have to compete with dishonest entities on the Australian binary option market.

Unlicensed entities agree to withdraw from the Australian market pending licensing

In July 2020, the Australian Securities & Investments Commission (ASIC) issued a statement where they informed the public about retail OTC derivative providers that had agreed to withdraw from the Australian market due to not having the required AFS license or authorization. At the time of writing, several of these entities are working to obtain the required license or authorisation in order to return to the Australian market in a legal and fully transparent fashion, in compliance with ASIC regulation.

Examples of binary option providers that have agreed to co-operate with ASIC and take remedial steps to refrain from providing financial services in Australia until they are fully licensed or authorized are IQ Option Limited, Rodeler Limited (owner of 24 Option, Grand Option, 24FX and Quick Option), BDB Services (owner of Banc de Binary), and Blackwell Global Investments Limited (owner of Blackwell Trader).

The entities that have expressed an interest in obtaining an Australian license or authorization are currently receiving assistance from ASIC to aid them in the process. Hopefully, we will soon be able to see several high quality binary option providers returning to the Australian market fully licensed or operating under the authorisation of an AFS licensee.

ASIC has released a number of public warnings in relation to unlicensed / unauthorized entities that have failed to respond to ASIC:s request.

“The dramatic increase in unlicensed conduct – particularly in entities offering binary options – is of real concern to ASIC,” says ASIC Commissioner Cathie Armour. “We remind investors to be wary of advertising on websites or unsolicited calls or emails by people offering these types of products, and to verify that product providers are appropriately licensed or authorised before dealing with them.”

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Welcome to BinaryOptions.auz.net

In BinaryOptions.auz.net we review and compare the best binary options brokers regulated by Australia Securities Investment Commission ( ASIC, Australia ) and who are accepting Aussie and NZ traders.

We recommend that you read our article about ” binary options trading in Australia” before choosing a broker.

What are Binary Options or Up/Down Betting?

In the world on financial trading, binary options or Up/Down Betting is a way of trading that is heavily used. A binary option is when an investor chooses if an asset will go up or down in a given time frame. All binary options are categorized into 2 types. These are the cash-or-nothing or the asset-or-nothing. The cash-or-nothing pays a fixed amount while the asset-or-nothing pays a value. Some people do not believe that binary options are good to use because of the issues that come with taxing them. In many countries around the world, investors are required to pay a taxation fee on binary options. Unlike Europe where there is no taxing in Australia binary options are included in market investing which requires a capital gains tax.

Assets included with optimizing binary options

Assets are different options given of stock, currency and investments that hold value that can be sold and traded for a profit. There are many assets that are integrated with binary options. These include your frequently used assets such as currency pairs such as AUS/USD and AUD/JPY. Another asset is commodities such as gold and oil and lasts your indices such as ASX200.
How to trade using binary options?
Open an account on a trading platform and add money to your account. Many platforms offer bonuses upon joining. Pick your asset and choose if the return will go up or down. At the expiry, you will learn if it is a loss or gain in your favor.

How to choose a broker for binary options or Up/Down Betting

When choosing a broker make sure you have information regarding if they are regulated. Second, check out their customer service department and their reputation. Third check out the different types of trades they offer and the software used. Last check out their payout due to the payouts being very diverse when coming to binary option. We have constructed a list of the best known and reviewed brokers in Australia:

  1. High Low – Up to 200% profit, AUD $50 to open, Demo account available, Australian Regulated by ASIC ( Australia ).
  2. GO Markets – Up to 80% profit, AUD $200 to open, free demo, regulated by ASIC ( Australia).

All these brokers have good startup bonuses as well as reputation and customer service. Try setting up a demo or micro account this way your investment is protected. You can learn skills and crafts in the trading industry. You will grow as you learn the trading system and soon you will be on your way.

Australian Dollars used by Binary Options Trading in Australia

Binary Options Trading in Australia and NZ

Digital or Binary Options Trading is a fairly new simple way for making profits from financial markets in Australia and New Zealand, and already a very popular method to make fast money among traders in Sydney, Melbourne, Canberra or Auckland

Although Australia is the major financial trading area in the Asia-pacific region, and Australian traders are accepted to most binary options platforms, unfortunately mostly brokers are not regulated and licensed in Australia by the government agency ( AFSL- Australian Finance Service License ), so they are not complying with all the requirements to operate in our country.

Type of Assets to Trade:
There are four types of assets to trade at this time. These include:

  • Indices
  • Forex or Currencies
  • Commodities
  • Stocks

Australian Indices:
There are six types of indices available in the Australian market today. They include Capitalization indices like S&P Asia Pacific BMI, fixed income indices like Australian Bank Bill, Residential Property indices like RP Data-Rismark Home Value, Sector indices including S&P All Ordinaries Gold, Strategy indices like S&P Buy-Write and Volatility indices like S&P/ASX 200 VIX.

Forex Trading in Australia:
This type of market is the currency trade market. It was created for large companies needing to trade currency on a frequent basis but is now a way to make a profit from an investment. You can trade currency pairs like AUS /USD, AUD /NZD or AUD / JPY.

Some Australian forex trading platforms licensed by ASIC are offering binary options: Vantage FX or Go Markets.

Commodities:
In this market, you have the option to invest your money in commodities from around the world. You can choose everyday items like coffee to more lucrative options like silver or gold.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Options Broker 2020!
    Great Choice For Beginners!
    Free Trading Education!
    Free Demo Account 1000$!
    Get Your Sign-Up Bonus Now!

  • BINOMO
    BINOMO

    Only For Experienced Traders!

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