Is Binary Options Trading legal in Australia? – Guide for Australian Traders.
Binary Options trading is pretty much legal in Australia. Presently, no such law is under imposition in the country to make this trading option illegal. Their Australian ASIC license backs the brokers that are offering Binary Options
trading in Australia.
Governments of different countries have set up several rules and regulations on binary trading. Australia has also imposed some regulations, but that doesn’t imply to be a ban. In fact, Australian investors have found binary options trading to be one of the most profitable trading modes.
All of the financial markets of Australia are under the regulation of ASIC (Australian Securities and Investment Commission). Every financial service company within the boundaries of Australia needs to obtain an Australian Financial Services License (AFSL) to be eligible for offering any investment products to the public.
Binary Options trading Australia has opened an ocean of opportunities for traders and investors to earn a good fortune for themselves. If you are willing to choose a broker, learn about binary options, and trade the same in Australia, then you have landed on the right page.
In this article, you will get a glimpse of almost everything related to Binary Options Trading Australia. So read, understand and act with a rightful approach!
What are Binary Options?
The binary option is just like any other financial product. Here, the parties involved in the trading or transaction are assigned one out of the two outcomes. Binary Options trading is a straight-out investment upon the prediction of yes or no propositions. Therefore, the name "binary" has been chosen for this mode of trading.
The traders win and receive a payout if their prediction leads to binary options expiring in the money. And the person incurs a loss if the prediction results in binary options expiring out of the money. The traders have to predict whether the price of an asset will go up or down the current strike price.
There will be an expiry duration that the traders need to choose. By the end of expiry duration, the price value of the asset should reciprocate the predicted movement to lead you to win your money. But if the asset value doesn’t move as per your prediction, you will lose all of your money.
The binary option broker platforms automatically credit and debit the funds from the trader’s account on the success or failure of the trade. It means that the trader will get their payout instantly in their account on successful trades and will be deducted for every failed trades.
For instance, assume the price of an asset is $25, and you want to impose binary options trading on it. First, you need to select ‘yes’ if you predict the price will go up and select ‘no’ if you predict the price will go down. After that, you need to choose the expiry date for the trade and capital you want to invest in it.
Now, you need to wait for the expiry duration to be out. If the prediction is correct, then the trader will get the payout as per the maximum payout percentage. In this instance, if the trader wins the trade with a maximum payout of 70%, then he will get $70 credited to his account. In case the trader loses the trade, then he will lose the entire $100.
Are Binary Options Legal in Australia?
Binary Options Trading in Australia has a very big learning curve for traders to win good profits. The payouts and risk levels are both high in this form of trading. And considering the risk factors, many governments have completely banned binary options trading in their countries. And some of the countries, like Australia, have imposed regulations on it to make it legal within their borders.
Many binary options brokers are trying to get in touch with Australian traders to lead them to invest in this trading format. It is because Australia is a major financial center across all of the Southern Hemisphere. And the government also understands the economic benefit that the country will receive with respect to binary options trading.
The Australian government has set legalizations upon Binary Options trading. But it depends on the brokers to get the license to trade with Australian citizens. Without it, the citizens of Australia cannot use this mode of trading. Therefore, considering the legalizations in Australia, it is important for the Aussies to choose the brokers based upon their service quality, regulatory status, and reputation.
With all these measures, Australia wants to put up a statement that binary options
trading is not illegal in the country. But, the regulations are mandatory for all to follow!
How to Trade Binary Options in Australia?
You can seek Binary Options trading Australia by looking out for the best broker platforms. To choose the best option amongst all, you need to check the detailed service factors, payout percentage, availability of assets, payment feasibility, and other such factors.
ASIC prefers to maintain an online professional Register of companies that have the license to put up binary options and other such financial products in the country. It is for the users to search the entire online register and then check up on the status of any company that offers binary options to decide to do business with them in Australia.
Brokers and Platforms in Australia.Brokers and platforms are the
keys to successful binary options trading. However, after Australia proposed its legalization status for binary options trading, the brokers are counted as best only if they possess the regulatory license by ASIC.
By choosing the ASIC-regulated brokerage firms, the traders can invest confidently in the assets and platform. It is because they will have peace of mind about a regulatory agency, looking after the legality aspects for brokers. In addition, the agency will ensure that the trades are fairly being executed and with utmost transparency.
To help you save the effort, here are the best brokers and platforms that are legal in Australia and for Australian traders:
Quotex.io supports traders from different countries and has the ASIC License to operate with Australian traders. The amazing broker started its journey of offering binary options trading in the year 2020. Quotex.io has offered enormous profits to the clients and gained popularity in a very short time span.
Quotex.io doesn’t have any mobile application, for which you need to access the web platform for your trading needs. When you register your account, you will straight away go to the page to select the asset you want to trade with.
Choose one from the list of assets available for you to trade. You can choose from cryptocurrencies, indices, commodities, and currencies over Quotex.io. You can earn up to 100% returns with Quotex.io, depending upon the liquidity of the asset. But, the payout percentage fluctuates over time!
If you are not in favor of investing your real money in the live trading feature, then you can go ahead and use the demo account at first to practice this form of trading. Not just practice, but you will also get a clear insight into the interface and operational functionality of Quotex.io.The charts embedded within
Quotex.io are subjected to respond to even the minute fluctuations in the asset price. The platform also allows the traders to mark the charts and customize them as per the individual needs. Moreover, this platform also consists of several indicators that will be helpful for you to make accurate trading decisions, depending upon the trader’s choices.
Quotex.io is offering Binary Options Trading Australia with the copywriting strategies embedded within the platform. This feature helps the new traders replicate the trading strategies of experienced ones over Quotex.io.