Binary options trading have been in the market since 2008 but its growth and adoption within different jurisdictions including Australia has been a little bit slow. However many online traders who trade on forex, commodities, stocks and indices are now starting to appreciate this new online trading channel that enables them to trade on the underlying assets without having to own them. In addition, traders are getting attracted to binary options trading since you only need to make a prediction as to the direction the price of the underlying asset will go and then you stand to make huge gains if your prediction is right.
Binary Options Trading in Australia is legal or illegal?
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With the growing interest in binary options trading, new traders who want to venture into the unconventional trading channel always have a major concern about whether binary options trading is actually legal in Australia. This is due to the fact that some people as a result of lack of deeper understanding of what binary options trading is and how the trading is done; they end up confusing it with gambling. News about online fraud too from other parts of the world by imposters who run fake binary brokerage online also dampens the spirits of potential new traders in binary options.
The good news is that a binary option trading is legal in Australia. Australian citizens are allowed to trade in binary options as well as operate a binary options brokerage firm; although this new trading channel is not main-stream yet in the country. For traders, it is advisable to first do a thorough due diligence on the available online brokers who you would potentially want to open an account with; in order to reduce your chances of falling prey to online fraudsters.
Using brokers registered in Australia such as HighLow gives you a safer bet since they are strictly regulated by the Australian Securities and Investments Commission (ASIC); and they are easier to track down locally in case of any challenges as you trade. In addition, checking out the track record for your preferred online broker gives you more details into their performance and what to expect in terms of returns as a trader. For instance a High Low review by an independent review firm will provide you with information about the trading platform and rate it in comparison to its peers in the industry. You will also get to see how current users of the platform rate it in order to make an informed decision based both on expert opinion of the independent reviewing agency and independent user experiences.
For companies that want to obtain a license to trade in binary options in Australia, the process is an easy one to follow; but the depth of the screening before the license is issued is thorough. This is meant to ensure that the companies licensed will operate in full transparency and fairness while adhering to the strict rules and regulation set by the Australian Securities and Investments Commission (ASIC). All companies seeking to get their legal registration and licensing in Australia must therefore seek their Australian Broker License first after passing all the eligibility criteria set by ASIC.
Brokers understand the importance of having the legal documentations before starting to operate in Australia. The Australian Broker License proves their legitimacy and increases their credibility in the market where there are numerous online fraudsters waiting for unsuspecting new traders to steal from them their money. With a growing competition within the binary options trading sector, brokers always want to ensure they are a step ahead in winning trust from traders and retaining them for the long-term by adhering to all customer protection laws. On the other hand, as a trader you will always feel safe when trading with a broker who is regulated by the ASIC; since it is the government agency mandated to ensure that the financial market in Australia is regulated and customers are protected from unlicensed brokers.
Now that you know that binary options trading are legal in Australia, you can opt to venture into this new trading channel; but you will need to keep a few fundamental tips in mind. First ensure you only engage a licensed broker and then try the demo trading before registering yourself and opening a live trading account. After that ensure you only deposit into your account an amount that you can afford to lose in case your trade backfires on you. Finally, trade on familiar assets to increase your chances of high returns; and keep trading until you are comfortable with the market and you master different market trends to develop your own binary options trading winning strategy.
