Banned binary options. Ban – How To Avoid The ESMA Ban On Binary Options

Common Misconceptions About Binary Options

Conclusion A ban on binary options has been in place since 2nd July in Europe.

banned binary options

EU Traders can avoid the ban, however, and continue trading. So what are the options for traders impacted by the ban? They were convinced that this measure would protect consumers and resolve the deluge of complaints they had received over the previous decade.

The ban was originally implemented temporarily, for three months.

Binary Ban Explained

Extension Since the original banned binary options, both the ban on binary options and the related restrictions have been extended: From 1st July to the 1st of October Then from October to the 1st January And again from January to 1st April On February the 18thESMA confirmed they would extend the ban again, this time to 1st June During this period, very little in the way of research has been done by ESMA, to see how effective the ban has been.

For example, the original scams were already breaking the law — so have they adhered to the ban?

banned binary options

They have however, branched out into cryptocurrencies — another area where regulators are years behind. The official text on each extension has been exactly the same, bar the dates.

banned binary options

With that said, it seems certain that the ban will remain in place, restricting the availability of binary trading to traders in the EU. So what can traders do?

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There are positives and negatives to all of them, but it is possible for traders to carry on, and that is banned binary options important thing. Firstly, trading with an unregulated broker that still accepts EU traders is to be avoided at all costs.

By Randall Liss Updated Sep 6, Binary options are contracts where an investor is speculating on one of two outcomes: a payoff or nothing at all.

This is not a safe route. Here are some methods to continue trading in a safe, legal how to make money betting in. Alternative Products Many reputable brokers have created new products to fill the gap left by the ban. Brands are looking at new products all the time, so look out for marketing information.

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Non-EU Branches One less well known choice for traders, is to move their account to a regulated arm of their existing broker.

That is right, you might be able to carry on with your existing broker… There are two key points here. Firstly, this is only possible where the broker has multiple regulated brands, in other words, separate brands in each jurisdiction or off-shore.

banned binary options

For example. It is possible for you to request an account with the Non-EU or off-shore branch of the business. ESMA allow this to happen — but brands are not allowed to market the possibility.

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The request has to come from the trader, and not be prompted by the firm themselves or marketing sources. Use A Professional Account This choice will only be available to certain traders.

To register as professional, traders must prove a certain level of trading experience 2 years in a financial service role for example.

They must also prove a certain level of trading capital k — though this can be spread between multiple accounts. In addition to opening up binary options again, registering as a professional will also mean traders can trade CFDs and Forex with much higher levels of leverage.

The trade off is that professional traders lose regulatory protection. Conclusion So there we have it.

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The binary options ban does not have to mean the end of you trading binaries. If the ban stops uninformed traders getting their fingers burnt — but experienced traders can carry on using them, then the industry, while smaller, will be better off long term. Top Brokers.

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