If you are a Binary Options trader then chances are you have heard about ESMA's decision to ban European brokers from offering Binary Options to retail traders. So how are you affected? What does this decision mean to you and can you still trade Binaries? Why Are Brokers Closing Out On Binary Option Traders in Europe and UK? Most recently, Paris-based regulator ESMA had effectively bring forth a firm and immediate ban on European firms offering Binary Options to people in Europe. Why Binary Options Trading Faded in Popularity. In the last couple of years especially, the party has come to an end for the binary options industry. Because binary options have been banned by regulators across nearly all parts of the globe, it is now highly risky to consider trading binary options.
A ban on binary options has been in place since 2nd July 2018 in Europe. Learn how to avoid this ban and find brokers where you can trade binary options. So there we have it. The binary options ban does not have to mean the end of you trading binaries. Binary options were banned for retail investors in Britain in 2018, with the country's Gambling Commission taking over surveillance of the market from the Financial Conduct Authority.
The EU today banned binary options fraudsters from targeting individuals in Europe. This comes just days after Lee Elbaz, a woman whom the Bureau accused of being a leading figure in the scam, was indicted for fraud in Maryland USA. Binary options involve placing a bet on whether the value of a financial asset - a currency, commodity or stock - will rise or fall in a fixed timeframe, sometimes as Israel had already banned the domestic sale of binary options last year, the first country to do so.
Why do I quote this whole part? Because it's exactly what happened with the binary options business. They would take your bet — and then they would determine what the FX rate was at the time the options mature. Nice work if you can get it! A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. The reason why Binary Option is not allowed (restricted) in Europe is because of terrorism. They are scared that money is going to flow to the terrorist group. They also want to prevent money laundering. Binary Option is not an official financial market and too dark business. Same as DD forex brokers.
Binary Options is not banned in USA. But it's strictly regulated by Commodity Futures Trading Commission ( CFTC).At this moment there are Why do I quote this whole part? Because it's exactly what happened with the binary options business.
But why is it justifiable to protect foreign investors as proposed in the bill promoted by the ISA? Binary options let traders profit from price fluctuations in multiple global markets, but it's important to understand the risks and rewards of these controversial and often-misunderstood financial instruments.