We cannot deny the fact that some traders – especially those, who are not so familiar with all the specifications as to this financial field – believe that South Africa is yet quite undeveloped and backward, so binary option South Africa market is not a thing to discuss at all. Indeed, when someone hears anything of Africa in general, the first thought and impression is the low level of advancing and experience. However, the binary option South Africa area does not refer to this conclusion at all. On the contrary, there is a quite huge chance for you to discover fantastic brokers for trading with binaries and located in South Africa. They do worth it and it could be a shame for you not to know the main features of this significant part of the overall global financial trading space.
Is There Any Regulation Program To Rely on, When It Comes To Binary Option South Africa Trading?
Only few years are there was no official authority or independent agency that covered the binary option South Africa field. This made many traders to claim and believe that financial services providers in this region are not trustworthy at all. Moreover – a big part from the binary trading community has the opinion that binary option South Africa brokers were illegal. At some point, they were right, because several years ago there was no regulation body in the country at all. However, lots of the local brokers were completely legal – with an official license and with the right to operate on the market. As to the regulation lack, traders preferred to use those binary option South Africa brokers that are offshore, which means they are either owned by companies from other countries, or they simply are foreign trading platforms, which, though, accepted South Africa-based traders. However, things have changed quite fast for binary option South Africa platforms. And currently, they are well regulated and very similar to the rest of the global top rated binary brokers like Binary Robot 365 for example.
What Are The Regulation Bodies for Binary Option South Africa Websites?
Today, we can point several controlling and observing agencies that cover both – the financial services providers in the country, as well the binary option South Africa brokers specifically. Check out them and learn the basic information about their job and tasks to perform.
Financial Services Board
The FSB – the Financial Services Board is a typical government agency for official and proper regulator of the entire financial services industry in South Africa and of the binary option brokers. Be aware that this agency does not have any independent functions or priorities the way most of the world`s popular financial regulation bodies have. Moreover – the Financial Services Board is oriented to all kinds of procedures, financial structures and binary option participants (including the South African Brokers) in South Africa with one single exception – the banking organizations and services. The Financial Services Board regulates the binary option market entirely in public interest by keeping an eye on the regulation of the largest stock exchange market in Africa, too. This market is known as Johannesburg Stock Exchange and many binary traders adjust their strategies due to the processes that happen in its sphere. Financial Services Board have lots of responsibilities and duties and the main ones among them are security of capital markets, Financial Services Provide controlling, insurance, collecting investment schemes and etc. However, the main work, which involves the South African Brokers,that the Financial Services Board does is to secure and arrange the work of one of its agencies. This agency is entirely oriented to control the binary option trading in South Africa.
Financial Advisory and Intermediary Services
The Financial Advisory and Intermediary Services Agency – known with the abbreviation of FAIS Division – has the task to secure the Financial Service Provides as part of the main FSB regulation body. To keep safe its faultless and smooth work, FAIS has acquired several basic departments with particular fields to operate in – Registration (of the South African binary option brokers), Supervision of the entire field for trading with binaries, Compliances by binary option traders, as well as helping the binary option South Africa websites to operate on the market as competent brokers of the global market. When you look for a decent and cool binary option South Africa broker, it is essential for you to pay attention at the regulation, but never forget to see if the main pros and benefits of a standard platform – regardless its origin – must have. Such features are good customer support services, interesting bonus systems, great choice for account type to open and etc!
How Popular are Binary Options in South Africa?
Ever since binary options made their appearance in the financial trading industry, its popularity has been on the rise ever since. A very large number of people have made binary options their primary focus in trading.
This is especially true for South African traders since we are seeing an increase in number of South Africans who are choosing binary options as means of investing their money.
We wanted to take the time and explore how popular exactly are binary options in South Africa and why, so we wrote this article to explain it in detail.
Why are Binary Options a Preferred Trading Choice for South Africans?
To better understand the popularity of binary trading in South Africa it’s important to explain what are the main characteristics of binary options trading.
Binary options are a simple two choice trading process that offers fixed payout in a specified timeframe. The whole process is founded on the prediction of asset price movement on the market. Obviously, you can either get the prediction right or wrong. There is no third option. Like we mentioned, the payout is fixed and know in advance, and the same applies to a potential profit or loss that may occur.
The asset price can go above the strike price or it can go below the strike price. When you place a trade that goes for the price rise then you put the Call option, and when you decide that the price might go down, you’d need to select the Put option.
The reason why most people choose binary options as their go-to trading choice is because it offers both short and long term expiry times. This means that you don’t have to wait for months or years for your trades to go through. Typically, expiry times in binary options range from one minute to a couple of weeks.
Binary options also offer the possibility of using a plethora of trading tools and strategies that you can generally customize in order to boost your chances for higher profit.
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Legality of Binary Options in South Africa
We are happy to report that binary options trading is completely legal in South Africa. There are multiple binary brokers whose platforms are available for South Africans. This also means that you need to be extra careful when choosing your binary broker as not all brokers will be regulated or suitable for your individual needs.
While on the topic or regulations, we feel that it’s important to highlight the caution traders need to exercise when choosing a broker for themselves. Regulated brokers are certified and obligated to adhere to a larger legal framework according to a local regulatory body, which should ultimately protect the trader.
Having said that, it is important to keep in mind that even regulated brokers are not a good fit for every South African trader. This also implies that not all unregulated broker are scams, so traders need to do their due diligence when it comes to choosing a binary broker. Review their sites, read our broker reviews, check out guides and ask a lot of questions if you are unsure if a specific broker is for you.
Are Binary Options Brokers Safe to Trade with?
In order to start trading with a selected broker, you need to register and make a deposit. It is important to know that brokers are not allowed to share your personal and financial information with any third party company or software.
As far as location goes, you can find regulated and unregulated brokers pretty much anywhere. To narrow it down, a significant portion of them is located in Europe while the rest can be found worldwide. In order to stay on top of your game and choose a binary broker that fits you, be sure read all available reviews about the specific broker, as well as any other helpful information on their designated sites. You want to look for a broker that is transparent about their process and methods with a working and professional customer support.
Most South African traders opt for European based binary brokers as they are likely to have a license to operate and need to follow a set of legally binding rules. In this context, regulations are set in place so that South African binary options traders can be protected from scams and fraudulent activities.
If you are the type of trader who isn’t fond of manual trading, then you might consider registering with a BinaryOptionsRobot instead. This binary software is specific in the sense that is totally free of charge and it offers complete control over your investment strategies and financial portfolio. BinaryOptionsRobot offers binary signals that notify the trader of a possibly lucrative trade that has been found thanks to robot’s ability to scan the market and pull relevant information from it. Once you receive the binary signal you can then accept and place the trade. This semi-automated way of trading streamlines the trading process and cuts your trading time significantly. it is important to say that BinaryOptionsRobot offers its services for South African traders too.
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Binary Options for South Africans
We also believe it is important to mention to South African traders that since there are strict payment options and tax regulations, that majority of brokers are not inclined to accept South African residents as traders on their platforms. For this reason, be sure to get correct information about payment methods and withdrawal process from a broker of your choice so you don’t get any unpleasant surprises.
Binary options trading is completely legal and extremely popular in South Africa. However, like we said, not all brokers are a great choice. There is a huge supply of great broker reviews out there that we urge you to read. It is important to base your decisions on facts, both when choosing your broker and during the trading process itself.
Trading binary options is an exciting part of the South African financial industry as it offers a very dynamic environment and is great for traders who are able to learn fast and appropriately apply the gathered knowledge.
Traders need to be able to trade knowing their financial strategies and decisions are under their own personal supervision. Stay away from a broker who promises 100% payouts as that is simply not possible, and often indicates a scam platform. Gather information, talk to other binary options traders, read FAQ pages on broker’s websites and above all, take the time to learn about binary options trading and methods of investing.
South Africa Binary Options Trading
The binary option represents a type of option where the payoff is a fixed amount based on asset of some kind. There are 2 types of binary options out there – cash-to-nothing binary type and asset-to-nothing binary type. You need to know those things in case you want to be part of the binary trading market all over the world. Many people are generating huge profits thanks to their binary trading skill.
However, in this particular article we would like to pay attention to South Africa. A country that is rather interesting when it comes to financial markets and investments.
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South Africa Forex Trading Specifications
In case you lack experience at all, it might be better for you to find regular binary option brokers in South Africa. As a matter of fact this is not a bad idea, even if you are dealing with forex. It is always safe to use a good helper. We would like to help you and due to this reason we will actually post a list of binary options brokers that you can use. Make sure you can analyze things like clear account closure, transparent account process, demo accounts, hidden taxes and fees, security, low commissions.
The overall volatility of the South African market is huge, and this is why the market is really suitable for risky players. The main factors you need to pay attention to are the demand for different stocks, for example. The risk, as mentioned, are higher, so you have to have good experience, and of course good partner!
In case you don’t have lots of money to invest, then this market might not be the best one with which you should start, but if you think you will handle the fluctuations, then take a look at the offers below.
As we mentioned, it is important to have a good partner when it comes to online binary trading in South Africa. All of the below mentioned brokers have been tested and have been in the business for quite a lot of time so they are really reliable. Take your pick!