British Car Manufacturers Weigh In On Brexit Debate – BinaryOptions

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The Brexit Effect on Binary Options Companies

The disentanglement of Britain from Europe may represent a challenge for CySEC regulated firms.

Prior to Britons voting overwhelmingly in favour of a Brexit, the political elite understood the importance of a single market. With Britain firmly entrenched in the European Union, a blanket policy vis-a-vis regulation and licensing of companies by various European regulatory authorities could apply to all member countries.

Opponents of EU regulation cite the diminished authority that the UK has over its own legal playing field. It is an interesting paradox that the UK now finds itself in given that it is now increasingly difficult for Britain to influence EU policy, laws and regulations now that it is no longer part of the EU.

In fact, regulation costs substantially more when it is borne by a single country as opposed to a collective effort such as is the case with the EU. The single market wields enormous clout on a global basis as it operates as an economy of scale. With Britain extricating itself from the EU, it gains more sovereignty, yet it adds more complexity and cost to the equation. In fact, the OECD has already labelled the United Kingdom as one of the least regulated product markets in the world.

In terms of complexity of obtaining permission, the UK ranks higher than other nations in Europe and this will not be changed by a Brexit. All of this is important when we hypothesise about the impact of a Brexit on Binary Options trading companies, many of which are regulated in Cyprus by the Cyprus Securities Exchange Commission (CySEC).

Getting Registered with the FCA (Financial Conduct Authority)

In order to offer financial services in the United Kingdom, companies should be registered and authorised by the FCA. With the exception of a few exempt firms, all financial entities need to apply for registration by the FCA. The Financial Conduct Authority (FCA) offers authorisation for electronic money institutions, mutual societies, consumer credit firms, payment services institutions and others.

The authorisation process for solo-regulated firms requires that financial companies complete a 4-step process as outlined in the following link. The FCA defines what it regards as regulated activities, and authorisation application fees are provided for all manner of financial applications. For financial companies, full compliance with the FCA is an intensive and all-encompassing activity with full reporting obligations.

Major Binary Options Brokers are regulated by European Authorities

Recall that until a few years ago, the majority of binary options brokers were operating without institutional control regulation. This led to widespread malfeasance in the industry, scams and fraudulent brokerages. The lack of control by way of regulation is a major problem in unregulated markets. Presently, binary options brokers that are regulated in Europe by CySEC and others will be facing a series of legal obstacles within the next two years as the UK extricates itself from EU regulation. However, it should be borne in mind that the process of disentanglement is a long and arduous one and it will present as a legal nightmare of unprecedented proportions.

Many UK traders are presently able to enjoy a full range of financial services from binary options brokers regulated in Germany by BAFin, AMF in France, CySEC in Cyprus. The question as to what will become of binary options brokers that are regulated in the EU and not in the UK is one that traders will be pondering.

How does CySEC License Binary Options Brokerages?

CySEC was established with the goal of making the Cyprus securities market an attractive, reliable and safe investment haven. According to article 25 of the law regulating the organisation, duties, powers and structure of the SEC in Cyprus, CySEC is tasked with among others, ‘… Examining applications and granting operating licences to entities under its supervision as well as to suspend and revoke the said licences.

There are multiple advantages to CySEC regulation, including the following:

  • Cyprus is the ranking jurisdiction for forex and binary option regulations
  • CySEC licenses are internationally recognized by all European Union countries, and Cyprus is a member of the EU
  • CySEC licensing is affordable and easy to maintain, and the procedure is fast and reliable
  • CySEC requires a minimum capital outlay of €125,000

Compliance with UK authorities such as the FCA is more complex. Any business that has the intention of offering regulated financial services in the United Kingdom requires additional authorisation. This is the most critical part of the process and it establishes a business as a credible entity. It should be noted that the FCA is not a government organisation. Therefore, all fees levied by the FCA are derived from companies seeking authorisation registration. Fees are broken down into 3 components:

  • Application Fees for the authorisation of financial firms
  • Change to Permissions, for authorisation to change to a different activity
  • Annual Fees payable to the FCA

Application Fees for the FCA range from £1,500 for straightforward applications, to £5,000 for moderately complex applications and £25,000 for complex applications. Fees to change permissions and annual fees will vary depending on the type of regulated activities being conducted. The FCA scrutinizes every application according to the type of financial service being offered. Now that Britain is no longer part of the EU, binary options brokers that have been granted European licences, but not British licences will need to start applying to the respective regulatory authorities in the UK in order to be compliant with UK legislation.

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Invoke Article 50 of the Lisbon Treaty

However as noted earlier, the divorce process from the EU will take upwards of two years, and Britain will have to invoke article 50 of the Lisbon Treaty. According to this important piece of legislation, a member state can withdraw from the European Union based on its own constitutional requirements.

First of all, the EC needs to be notified according to the guidelines of the European Council and an agreement will then be concluded with the UK. This then begins a long and difficult process of separation. What this means in simple language is that it will take time for the UK to be fully separated from the EU and in that time, binary options brokers with European licensing and regulation will be able to make the necessary applications to the UK authorities for permission to offer their services.

British Car Manufacturers Weigh In On Brexit Debate – BinaryOptions

Having acquired basic knowledge on binary options, the prospective investor or trader ought to move to the next step towards engaging in one of the most promising and exciting kind of investment. This involves selection of a best binary options broker. The selection process may sound easy but the fact of the matter is that it can be involving especially if the investor wants to get good returns on his or her investments. One is supposed to take time in the selection process so that the kind of binary options broker that the investor ends up with meets the needs. Making a wrong choice at this stage may lead to undesired results as well as problems with the trading platform, poor support services and low quality investor services.

Here are important characteristics and qualities of best binary options brokers that investors need to consider

Best binary options brokers

Best binary options broker is one who strives to make the investor’s job easier. An investor who is looking for a broker need to find one who offers an easy sign up, this enables the trader to get an account as well as start running it immediately. To get one who fits this description, an investor need to carry out a search so as to come up with an individual who is reliable. The investor can also ask for recommendations from people who have invested before, this will give a true and clear picture of the broker. Also the reviews from the internet will tell more about the reputation of a broker. If the people who have used a given platform are not happy with the services which they were offered as far as signing up process as well as payment methods are concerned, this should raise an alarm.

Payment methods

After ensuring that the broker whom you wish to trade with have an easy sign up process it is also important to establish whether the payment methods which are used by the broker meet your needs or they are well supported in the regions where you stay. There are some cases where brokers in some areas use payment methods which are unavailable allover the world. When the payment methods which are used by the broker are either unsupported or are unavailable in your area, when it comes to withdrawals and deposits, there might be an issue.

Binary options web platforms and mobile platforms

There are various trading platforms that are used in the trading of binary options. We have the mobile based and web based trading platform as the main types. It is important for an investor to find out the kind of platforms that a broker whom he or she intends to register uses in the course of trading. If the investor is planning to trade using a mobile device for example a tablet, then there is a need to establish whether the broker’s platform supports such tools. It may be frustrating to register and discover later that the devices in your possession are not compatible with a trading platform which is used by the broker. This will force the trader to spend extra money in buying a device which will work well with the trading platform. The best trading platforms in the market are normally compatible with most of the devices and can also be accessed from any part of the world as long as the area is covered by internet connections. A good trading platform also needs to have extra tools which help the investor to navigate through the system. The investor need to access the educational materials so that the learning process can be easier.

Binary options assets

There is a need to establish the kind of trading assets that each broker allows in their platform. You may find a very good broker in terms of the payment methods, compatibility, reliability but find that the trading assets available are somehow limiting .This basically means that as an investor one will not be satisfied since there is an outright limitation as far as the range of asset is concerned. Before engaging and even registering, an investor should check the assets that a given broker offers as well as make sure that popular assets are allowed.

Broker payout

Binary options broker payout is among the most important factors that any investor should consider when it comes to selecting an appropriate broker. While coming in to trade in binary options any investor aims are reaping the best and highest benefits. If the rate of return is low, then this will not be achieved, therefore the rate of returns offered by an individual broker should form the basis of decision making when it comes to selecting an binary options broker to work with. Normally the binary options brokers are known to offer returns ranging from 65 to 85 per cent, although in some case the rate may be higher. There are also some special kinds of binary options which offer a return of 500 per cent.

To succeed in binary options trade, an investor must have access to vital information on the assets he or she is trading on. There is also a need to access vital technical tools to help in execution of strategies as well as carry out the necessary technical analysis. Most of the brokers provide access to the necessary technical tools but one might not be sure, therefore it is important to establish whether the investor will be allowed to access the necessary tools required for technical analysis.

Binary options demo account

A binary options broker is supposed to provide the new investors with a demo account as part of educating them on how to trade. As an investor one should not use the services of a broker who does not provide an opportunity to carry out trade through a demo account. Demo accounts provide an environment similar to earn that exists in the normal trade, here the new investors learn all that is needed to carry out a successful binary options trade. One familiarizes with the interface of a trading platform and learns about the trade without having to risk the money. It is only after an investor has understood how the trade operates should they graduate to the real trade.

Broker support

Support during the early days in trading assets is very important to an investor, this not only gives then a chance to ask for guidance but also any questions which may arise in the course using the services. The broker who is selected should have a support staff who are skilled, experienced as well as polite and helpful when it comes to dealing with issues which arise.

Making the right decision when it comes to the selection of brokers will largely determine the success of the investor, therefore every step should be taken to ensure that the one who is selected will offer all the necessary support, is reliable and at the same time have the best rate of return in the market.

How to open an account

The accounts requirements

An investor is required to fill in information which almost every website requires in the course of registration. Here one is required to provide the name, residence, the currency which is preferred, email, password and the payment method. Contact details such as phone number are need to be used during the verification process as well as in case the investor needs support from the broker.Investors are allowed to register two accounts where one uses real money and the other one is a demo account. A demo account is necessary as it offers the investor a chance to learn before they start using real money.After the registration process is over, the investor will be required to verify the account. Most brokers carry out this process for security measures. The process ensures that the person who has registered is of age and at the same time, it is a real person. The verification process may be through sending a photograph as well as scanned images of personal identification documents such as driving license, national identity card or a passport. Although the process may be tedious, it guarantees the investor’s safety against identity theft as well as fraud. Some brokers will only require you to verify the account through sending an email or through accessing the website using a one time link which is sent through the email.The registration process depends on the broker that you have chosen, for some it may take only a few minutes while others a couple of hours to days. When asked to verify the account, it is not that the broker does not trust but rather it is a way of ensuring that fair and secure trade is maintained all the time

Various payment methods are available, an investor is supposed to select one which is allowed in his or her region. One can select to deposit or withdraw using a check, PayPal, skrill, money bookers, web money, bitcoins among other payments methods. Minimum and maximum deposits and withdrawals are set by individual brokers; therefore it is important for an investor to check with them. Some brokers may require a minimum of $ 100 as an investment while other may ask for more.

Will the British car manufacturing industry boom after Brexit?

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The UK car industry has a high cost base compared to Eastern Europe so has two strategies to remain competitive.

Either it has high volume and high productivity like Nissan or Vauxhall Opel , or small volume luxury where the profit margins can sustain it.

Leaving the EU with the current deal or no deal will harm the high volume model as it relies on low tariffs and easy movement of parts within its largest market. None of this type of manufacturer is equipped to make everything in the UK so they will be severely impacted.

The luxury market could survive but will find it harder to compete if th.

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