The FCA’s rules are permanent and come into force on 2 April The FCA estimates the permanent ban on binary options could save retail consumers up to £17m per year, and may reduce the risk of fraud by unauthorised entities claiming to offer these products. /12/24 · ESMA decided to prohibit European brokers from marketing or offering Binary Options to retail investors, effective from July 2nd, This ban will be in place for 3 months, during which time ESMA will be reviewing its effects and will decide whether to extend or to revoke it Last December the ESMA, the European Securities and Markets Authority, shocked traders with news they were planning . /03/17 · Will The ESMA Ban Binary Options March 17, Last December the ESMA, the European Securities and Markets Authority, shocked traders with news they were planning a blanket ban of all retail binary options trading. If they follow through with this and other proposed rules it could change the face of binary, forex and CFD trading forever.
What is the impact of the FCA's ban on binary options?
The ESMA ban on binary options has been extended again, and in all likelihood, the ban is likely to remain in place indefinitely, ban of binary options. So with a blanket ban on the marketing and sale of binary options in Europe, is there anything traders can do to continue trading?
The ban was and still is temporary, for a 3 month period, with the possibility of renewal when said period is up. Since then, ESMA has constantly renewed the ban, and have announced they will do so again when the current period is up, on the 2nd of January The Authority will probably continue to renew this measure indefinitely, so EU customers are not likely to trade Binary Options anytime soon, at least not with regulated brokerages, ban of binary options.
Currently we are dealing with a black and white situation, without much room for interpretation: binary options cannot be marketed, sold or distributed to retail clients. However, as you will find out next, these exceptions are almost impossible for the brokers to implement while still making enough money to avoid bankruptcy. It basically means that on any given trade the worst outcome is you get your money back, including all commissions and fees.
The other outcome is to win the entire payout, ban of binary options. While the first 2 conditions are pretty straightforward, the last one may need a bit of clearing up: the brokerage should have no interest in the ban of binary options of the trade. In other words, the old conflict of interests where the brokerage would make money when you lose a trade should completely go away. Remember that all three conditions are cumulative, so it will be extremely difficult for a brokerage to implement them all at once and to make this type of binary option both lucrative for them and appealing to traders.
In short, yes. There are some viable ways to continue trading. One choice we are not going to expand on is using unregulated brokers — this is high risk and fraught with danger, to the point where it should not even be considered. One downside to the ban, is that it does nothing to address the scams.
They operated outside of the law anyway, this ban will not change their behaviour It may even embolden them as they know the European regulator has no appetite to chase them.
Only use regulated brokers. So with that said, let us move on to some genuine ways you can carry on trading. This choice will only be open to certain traders. You need to prove a certain amount of trading experience, and trading capital.
Assuming you can, then you can register as a professional trader. Brokers can lawfully offer you binary options again. The downside is that you sign away any regulatory protection. You are basically saying you are financially aware enough to use high risk products. It is a great choice for experienced traders and indeed, many have already taken this step to continue trading just as they were. Many brokers have created similar products to binaries, but made them different enough to dodge the ban.
Expect more to follow. While not strictly binaries anymore, many of the same strategies will work. One note of caution however, is that ESMA ban of binary options watching these products closely. If they feel the ban is being flouted, they may insist the new products are removed too. This option needs some detective work. ESMA will allow European traders to trade under a different arm of the same brand — as long as the request came from the trader — the brand themselves are not allowed to market this as an option for their customers.
ESMA have already reprimanded a couple of brands for trying. Ban of binary options as long as the request comes from you, the trader, then it is ok for the broker to facilitate that change for you. Once operating under another regulated arm of the business, you can access ban of binary options again. So get the deerstalker on and see if your broker has regulated branches in different jurisdictions.
So with these choices, it is possible to carry on trading, possibly without even leaving your current broker. There is also absolutely no need to look at unregulated firms. So the ban on binary options ban of binary options not have to mean the end of your binary trading, ban of binary options.
Official solutions for Binary options trading after ban
, time: 22:24
ESMA did not extend the ban on binary options trading in the European Union. July 1, it became known that ESMA ceases its temporary ban on marketing, advertising and the sale of “binary options” for retail customers from the European Union. Definitely, this is a mutual reason for joy for both unprofessional traders and trading platforms from the. /12/24 · Federal Court Orders Banc de Binary Ltd., ET Binary Options chỉ số stochastic Ltd., BO Systems Ltd., BDB Services Ltd., and Oren Shabat Laurent to Pay More than $9 Million in Restitution and a Civil Monetary Penalty for Violating the CFTC’s Ban on Trading Binary Options Off-Exchange. However, you may find it more of a challenge compared to other countries A ban on binary options . Binary options banIf the ban stops uninformed traders getting their fingers burnt – but experienced traders can carry on using them, binary options ban then the .
No comments:
Post a Comment