Binary Options in Australia

Ready to profit from binary options trading?

Want to know which are the best brokers in the Australian market?

Binary options has become very popular in Australia, mostly because of the high return it offers on your investment, but also because of the adrenaline rush that these very short term financial derivatives cause.

To avoid unnecessary risk and enjoy your profits, understand which companies are the safest for your market.

Legal Status in Australia

Are binary options legal in Australia?

The Australian online trader first became interested in binary trading in 2010, thanks to the initiative of such companies as EZTrader and Anyoption, which were investing heavily in bringing this online tool to new markets.

Since binary options only began to be traded at the end of 2008, the process of regulating them in each individual country was not complete by the time thousands of Australian users were enjoying the profits that options trading can create.

For the AFSA, the Australian financial authority, the government agency that is supposed to regulate all financial activities, binary options became a headache. In fact, financial authorities worldwide have had trouble adapting to the internet era, and the rhythm in which new investment tools appear and become widespread.

That is why, as a general rule, you should always prefer investing with companies that are fully regulated by a member of the European Union, the safest situation nowadays. EZTrader, OptionBit and Global Option are examples of such firms.

ASFA tends to accepts the license issued by member countries of the European Union, and therefore the CySec regulation granted by the Cypriot government to the above-mentioned binary options brokers safeguards your investment.

Australian Traders Preferences

There are four types of assets in binary options trading:

  1. Currencies, also known as forex
  2. Stocks from markets worldwide
  3. Commodities, such as Gold, Oil or Copper
  4. Indices, such as the Nasdaq index

Top brokers will always have a varied index, with assets from different world markets that enable brokers to trade throughout the week benefiting from different time zones, and also invest in assets they are more acquainted with. In addition to those advantages, a diverse index allows you to create a strong investment portfolio and make sure you benefit from all market opportunities.

In Australia, traders initially gave preference to currency options, because of the influence of the Forex industry. Binary trading evolved from Forex trading, and a large percentage of traders were historically used to trading with Forex when they shifted to the more convenient and less complicated binary investment.

Nowadays, though, Australian traders also tend to choose Australian assets, mostly stock traded on the ASX stock market. Since information about these companies is more frequent and accessible in Australia, traders have given preference to these options.

The Australian Online Trading Market

Australia is considered one of the largest and fastest growing binary options market. Australian traders are considered knowledgeable, better prepared, and easier to deal with than clients in most other regions.

Likewise, it seems the ASFA has done a good job of protecting investors throughout the years, and therefore traders trust their financial authority and are willing to invest without fear. The rather comfortable laws governing online investing in Australia and the comparatively very low taxes charged on financial profit, have made Australia into a prefered destination of binary options brokers globally.

There is, of course, a benefit in this popularity. Australian customers will receive preferential care and can benefit from multiple promotions, such as the 100% cash bonus offered nowadays by OptionBit and EZtrader, which double your initial investment.

Nonetheless, the interest that brokers take in the binary options market of Australia also bring into the country many suspicious companies, who lack the seriousness and security you need in order to succeed. Such corporations have been accused of scam, in fact, and you can receive more updated information from our Scams section.

Risks of Binary Trading

Considered one of the top investment tools in terms of payout percentages, binary options trading is nonetheless a speculative instrument by nature and a derivative that involves volatility and risk of loss.

It is obvious that such an opportunity to earn a substantial income daily has to include a level of risk, and from the trader’s side, caution is a key word. The best risk management mechanism, though, is knowledge.

Binary options brokers offer customers in Australia an array of instructional material, educational centers, online courses and videos, all in Australian. The amount of information and data available today specifically for the Australian binary options trader is sufficient to help you become an expert trader.

Certainly the first step in terms of risk reduction is using a regulated broker, but the second step does involve the commitment to learn and understand the secrets of online trading, creating a trading strategy and investing with a method, rather than randomly.

AFSA and the ASX

If you have concerns regarding the Australian market itself, you should not. The worse period of the financial crisis that begun in 2008 is well behind the market, and the prognosis of growth for the ASX stock market is positive.

Meanwhile, the AFSA has learned many important lessons from the past periods of financial strain, and the financial fortitude of banks and similar institutions in Australia has vastly improved. With the immense growth of online investments the AFSA has monitored the binary options field closely, and the current CySec guarantees are strong and safe.

Regardless, binary trading has the benefit of allowing you to profit even when stock markets and the economy at large is suffering or experiencing difficulties. Since it is always possible to invest towards the market’s trend through binary options, the fluctuations of the Australian market do not influence your results.

Binary Options in Australia – Summary

  • Australian traders should be very satisfied with the evolution of binary trading in Australia.
  • In the very fews years since it was introduced to the markets, this industry has been able to seek and conclude a process of proper regulation that significantly improves the safety of this investment.
  • Likewise, binary options brokers, as a result of their strong interest in the Australian market, have increased the variety and amount of Australian assets available on their trading platforms.
  • It is always important to keep in mind the volatility of binary options, and invest with caution while choosing a licensed broker.
  • The Australian Financial Security Authority has supervised this market carefully, making sure investors are well informed about the risks involved and even banning sites that are clearly fraudulent.