An Australian binary broker was behind the development of the first MT4-binary trading platform, offering binary options contracts on the famous MetaTrader platform. This opened the door for similar products that dot the market today.
Opportunities therefore exist for Australian traders to make money trading binaries. However, the Australian regulator has come out to put in place certain regulations to safeguard Australian investors from unscrupulous companies. Binary brokers are not exempted from this stipulation. ASIC requires any offshore binary broker that wants to target Australian traders to get the AFSL license and open a physical office in Australia not just having local agents. This is because ASIC wants to ensure that any binary options broker that wants to do business with Australian citizens must operate under the same rules and conditions as the other companies already located in Australia.
In furtherance of this objective, ASIC has signed agreements with CySEC and the FFAJ, the regulators in Cyprus and Japan, to stop brokers in these jurisdictions from advertising their products to Australian traders and instead, comply with the directives issued above.
That is why it is not unusual to see a few brokers carrying multiple licenses that reflect the positions of these regulators in stopping cross-border advertising of binary products.
Presently, the trading of binaries in Australia is very legal, and ASIC has gone several steps further to ensure that traders get the best information about binary options. ASIC also maintains an online Professional Register of companies licensed to offer binary options and other financial products in Australia. Users can search the online register to check on the status of any binary company they want to do business with in Australia. Two types of binary options are licensed by ASIC to be offered to traders on the platforms of the top Australian brokers:.
When the option expires in the money, the price of the binary option on entry is either deducted from , or added to 0, and multiplied by the number of contracts to give the payout.
If the option expires worthless, the trader loses the entire investment. The binary options platforms used by brokers in Australia are a mixture of proprietary platforms, turnkey platforms and MT4-based platforms. It is also possible to trade binary options in Australia using the mobile apps of the various brokers. The issuance of bonuses to traders as an incentive to fund accounts is prohibited by ASIC.
Brokers who go against this directive could face severe penalties. What are the legal considerations and regulatory conditions attached to the conduct of the brokerage and trading of binary options in the Australia? Binaries in Australia are tightly regulated by ASIC, and Australian traders are strongly advised by the regulator not to trade with offshore brokers.
While there is no law expressly prohibiting this, Australian traders are advised by ASIC not to trade with, or send identification documents to offshore brokers.
You can also check the list of unlicensed brokers on the ASIC website. Australian traders are allowed to deposit and withdraw funds using Skrill, Neteller, Payza and a host of other digital wallets. PayPal is a limited option for Australian traders. This is because PayPal does not feature universally on all the platforms of the top binary brokers in Australia.
There are other digital wallets that have a stronger presence in Australia. As described earlier, only brokers with a physical presence in the country are allowed to do business in Australia. VantageFX is generally regarded as the pioneer in binary options brokerage business in Australia. Other top binary brokers in Australia are as follows:. The evolution of binary trading in Australia has been a very interesting one. It is worth mentioning that the Australian Securities and Investment Commission ASIC has distinguished itself from other regulators by actually taking time to setup a website to educate the investing public about what binary options is all about.
Investor education is an integral part of making sure that binary options is conducted in a manner that conforms to best practices all over the world. Given what ASIC has been able to do, traders in Australia are enjoined to carry on with their business without fear, as the brokers in Australia have been properly scrutinized and considered fit to offer their products to the Australian trading public.
Australian Binary Options Brokers. Simply said, ASIC wants the same rules to apply to everyone for better control and regulation of the markets. Your capital is at risk. Trade with caution, these products might not be suitable for everyone so make sure you understand the risks involved!More...