Australian Binary Options Brokers
Binary Options Trading Using ASIC’s Rules
Australia is considered a major trading hub in Asia, and that is why brokers target the country’s expanding population of traders. 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.
TOP BROKERS IN AUSTRALIA
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Binary Options trading in Australia
Australia’s financial markets are regulated by the Australian Securities and Investment Commission (ASIC). Every financial services company in Australia is required to have an Australian Financial Services License (AFSL) to be able to offer investment products to the public. 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.
Simply said, ASIC wants the same rules to apply to everyone for better control and regulation of the markets.
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. To this end, ASIC has a financial guide website for traders known as MoneySmart. 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.
Currency Pairs & Spread
As per ASIC rules, binaries in Australia are priced and offered to traders on a 0-100 basis. Two types of binary options are licensed by ASIC to be offered to traders on the platforms of the top Australian brokers:
- One Touch
- Digital options (Up/Down)
The outcomes of trades for these two option types are decided on a yes/no basis. If the option moves in the trader’s chosen path, the binary option will settle at 100. If the binary option ends contrary to the trader’s expectation, the binary option will settle at 0.
Price quotations are on a two-way buy/sell price basis. A “yes” decision by the trader is done if the option is expected to settle at 100. A “no” decision is made in expectation of a settlement at 0. When the option expires in the money, the price of the binary option on entry is either deducted from 100, 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.
Deposit and Withdrawal Options
What deposits and withdrawal are available to binary options traders in Australia?
- Cards: Multi-currency transactions can usually be performed using several brands of credit or debit cards. Cards issued by VISA and MasterCard are the major card brands that will be found on most platforms.
- Two types of bank wires are carried out by the top brokers in Australia. ASIC requires Australian brokers to maintain segregated accounts. Majority of binary options brokers in Australia segregate clients’ funds with the National Bank of Australia. International bank wires from domiciliary accounts are usually channelled to these segregated accounts. Several currencies are accepted: AUD, USD, EUR, GBP, SGD, JPY, NZD, CAD are usually the currencies of choice.
- The other type of bank wire is from domestic banks and is only available in Australian Dollars.
- Digital wallets acceptable in Australia are those of Skrill, Neteller, POLi and BPAY. BPAY and POLi are Australian-only digital wallets which allow online bank deposits and withdrawals. Transactions can only be done in Australian Dollars.
Legality & Regulations
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.
Here are the frequently asked questions that most Australians have about the conduct of the market in the AUSTRALIA.
- Are binary options legal in the AUSTRALIA?
Answer: The trading of binaries is legal in Australia.
- Is it safe to trade binaries in Australia?
Answer: ASIC’s strong stance on regulation as well as its heavy focus on investor education make it very safe to trade binaries in Australia.
- As an Australian citizen, am I allowed to trade binary options with offshore brokers?
Answer: 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.
- How do I check the status of a binary options broker?
To check the regulatory status of a broker in Australia, visit the Professional Register link on the ASIC website. You can also check the list of unlicensed brokers on the ASIC website.
- Are Australian binary traders allowed to use digital wallets?
Answer: Australian traders are allowed to deposit and withdraw funds using Skrill, Neteller, Payza and a host of other digital wallets.
- Is it possible for traders in Australia to transact on binary options platforms using PayPal?
Answer: 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. Skrill, Neteller and POLi are much more established than PayPal is among binary options brokers in Australia.
Best Binary Options Brokers 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:
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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. Kudos must be given to ASIC for the steps it has taken to sanitize the market in Australia.
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.