Why are binary options brokers targeting south africans
Now, with the appearance of binary options , financial trading has become easier than ever. With binary options South Africans now have an extremely convenient way of becoming traders through online investments with possible higher payouts than they have ever hoped for. Binary options provides a straightforward way of making money and capitalizing on your limited insight into commodities, prices, stocks, currencies and everything in-between.
The attractiveness of binary options is composed of something else too. Its nature is very similar to gambling because in a way you bet that a certain prize will come up or down.
Because of this, binary options has attracted many traders that love gambling too. It is also the reason why authorities have viewed it with doubt and were reluctant to regulate it. However, when all the doubts cleared some years ago, governments all over the world started passing legislations with the purpose of making binary options legal and a valid option for profit.
The subsequent result was the emergence of legal binary options brokers that provided traders with safe and legitimate tools for trading. Here we give you a round of questions and answers that will eliminate any doubts about binary options and its legality.
The burning question is whether binary options trading is legal in South Africa, which is why it is the first question we answer below. People that are new to binary options often get excited about it because it enables them to achieve high payouts in short period of time. Thanks to the fixed payouts and expiry times, you can choose trade options that can lead you to successful trading.
Besides gaining understanding of the financial market, you need the proper knowledge of trading instruments. These instruments are essential in maximizing your profit when trading binary options.
The best way for beginners to avoid losses with their first trading attempts is to make investments on assets that are not so volatile. You can discover these by training yourself using a demo account. However, thanks to the quick trade nature of binary options, the volatility factor can be avoided easily or at least reduced.
This is why binary options are so popular. At the moment there are very small hints that binary options will become a regulated industry in South Africa or maybe illegal. The second option is very unlikely. However, the positive outcome from the current situation is that South Africans are free to trade binary options without being persecuted. The negative outcome is that there are brokers that operate without a license.
If the government decides to regulate binary options trading, the governing body will be the Financial Services Board FSB. The Board will be responsible for overseeing operations, regulate the industry and issue licenses as well as checking whether the brokers comply with the laws. Therefore, many positive aspects will arise from the regulation of binary options trading.
However, with the regulation there may be some negative consequences as in the case of the United States. Their laws forbid US citizens to trade at foreign brokers even though those brokers are compliant with the US standards for binary options trading.
If such case happens in South Africa, traders will be forced to trade binary options only with South African operators. Legal South African Binary Options and Brokers for We have seen many people in South Africa with the desire to participate on the financial market and profit from it, but never knew how. There have been no signs that any kind of regulation will take place in the near future, so enjoy being a binary options trader while you can in case of the government decides to make it illegal, which is doubtful.
Are there legal binary options brokers in South Africa? Because there are no laws that regulate binary options trading, consequently there are no brokers that are legal in aspects of working with a South African license. Since there is no law, there is also no financial or regulatory body that will issue the licenses and make sure the brokers comply with the law. This is why you should be careful when deciding to trade with the help of binary options brokers that operate from within South Africa.
Can I register with foreign binary options brokers? All of these companies have active licenses from the FSB, making them trustworthy and advisable to deal with. Most of them have already set up physical offices in South Africa, further making them more reliable.
Before you even consider making your first trade, it is crucial to be aware of the laws and regulations that apply in the industry.
All countries will have a different set of laws concerning financial markets, and if you are a South African resident, these will be necessary to know. The first and most important has to do with regulation and licensing of top South African Forex brokers.
Just like in all other regions of the world, all countries have a financial regulator whose role is to oversee the actions of financial institutions. This is because the FSB was put in charge to ensure all financial institutions, including Forex brokers, adhere to the rules. Furthermore, they have the ability to pursue wrongdoers and impose penalties on them.
Several scams have been conducted by Forex brokers just because they were not legitimate to start with. After the company had received client funds, though, the founder of the company disappeared and the funds were lost. Regardless, it just goes to show how much legitimacy the license from the FSB provides. Beyond the first level, the institution can issue warnings and statements about any FSB regulated Forex broker. If, say, one of them has been fined for some wrongdoing, then the public shall be informed by the FSB.
It is important to have this information, as it helps you decide whether you should keep working with them or not. Besides the licensed entities, the FSB constantly issues warnings regarding unlicensed companies luring South Africans.
DMD Capital was operating as Profit Trading and was at some point the top South African Forex broker with announcements in newspapers and over the radio. Finally, you can rely on the FSB to pursue a claim on your behalf whenever you have been wronged. They have the authority to pursue the company and either fine them or suspend their license, as they did with Profit Trading.
You can also get a refund from your losses if there were any, because the FSB requires the client funds be placed in a segregated account. That means, even in the case of bankruptcy, you never lose your capital. Beyond the laws on regulation, the South African Revenue Service SARS also has some conditions of its own regarding the amount of money you can take out of the country.
You can only take out a maximum of 11 million rands in a year. The first million rands are a discretionary allowance, but the remaining 10 million needs a tax clearance from SARS.
The process is not as easy as you may think because the institution has made the process very tricky and complicated as they try to prevent capital outflow. Every broker will try to offer as many trading instruments as possible in order to stand out from the rest. The decision here should be very simple as the best South African CFD brokers will have the most number of products available.
These should range across several markets from the commodities to the indices, stock, and even cryptocurrencies. That last option is very important because South Africa has been very accommodating to bitcoin and other cryptocurrencies.
Today, you can even pay your traffic fines using bitcoin in South Africa. However, the process is still a long way, as there are no official exchanges or ATMs, so the brokers can only offer cryptocurrency trading through CFDs.