Fast, easy, and one of the most popular types of financial dealings, binary trading has attracted many people. There are currently hundreds of brokers on on-line platforms such as Tradingbinary.co.uk that caters to it. Traders can place their ‘bids’ from their home computer or while on the go, using their mobile phones. The sky is the limit here.
Is it legal ?
Though binary options have been present on the market for a long time, many people are somewhat concerned about the legality of such ventures. Binary options can only exist as a consequence of the transparency of prices, and due to certain regulations. It is safe to say that this particular form of trading is legal in the entire EU territory. Brokers here have licences from a number of regulatory bodies, AMF in France, CONSOB in Italy, and CySEC in most countries. This means that the said broker is obligated to abide by the stated laws in the country they are regulated in, otherwise, they will face the consequences.
Regulations in the UK
Brokers in the UK are regulated by the Financial Conduct Authority. This agency, that is completely independent of the government, can either take away or give licences. It has the authority to suspend brokers that have a fraudulent behaviour. Therefore, the FCA is to be contacted if you have previously encountered one such broker.
This being said, if you are considering engaging in binary trading, you need to choose a good, registered broker. As searching for the best one in the extremely large pool can be a daunting process, you will be relieved to know that platforms such as tradingbinary.co.uk, have lists of great, fully regulated brokers. Picking the right one from the list will only be based now on welcome bonuses and percentages.
The pros of binary trading
- Less anxiety than in the case of regular trading-
This is because you do not have to buy an asset and then wait for the best time to sell it for a good profit. You only need to predict if its value will either increase or decrease to a target period.
- Quick money –
If you play it smart, you can increase your capital in a matter of minutes. There are also many brokers that have an option of a weekly payoff from 500%.
- Easiness –
Binary trading is pretty straightforward, eliminating the multitude of variables classical trading is based on. No more correlations and complicated time frame to consider.
- No fees –
This entire system is based on a payoff/ rebate backbone.
- No margin call –
You are only allowed to use the exact sum you have in your account, eliminating any potential fortune loss in case the market is not favourable to you.
The cons of binary trading
- There is risking –
There is a level of risk as with every single form of trading. This is why it is advisable you have a certain amount of knowledge regarding the asset you are involved in.
- There are few trading tools –
As most ‘dashboards ‘ do not have a support system to carefully guide you, you might be flooded with adrenaline and react too quickly to what you see.
All in all, the best way to engage in binary trading are to ease yourself into the process and practice on a demo account before you dive into. After all, practice makes perfect.