We understand that when thinking of binary trading, many questions regarding legality as well as regulation comes into play. In South Africa, binary trading is moving from strength to strength, and traders are increasingly looking for ways to connect with the global investment market. The strong financial infrastructure in South Africa means that binary trading is gaining in popularity among traders due to how easy it is to learn how to trade. This article examines the legality of binary trading and provides you with some handy tips to consider when choosing the right brokerage firm for you.
Trading binary options really knows no boundaries, as all you require to get started is a secure internet connection, some investment capital to get you trading, and the desire and drive to learn more about how this investment opportunity works. Binary trading is an option for you wherever you live in the world and gives you the option to trade various assets including Stocks, Commodities, Indices and Currencies. The financial sector within South Africa is likely the most advanced – and most liberal – throughout the continent, and as such, binary trading has become increasingly popular among traders. This guide explains the legality issues surrounding binary trading in South Africa and gives you key information about broker selection.
Is Binary Trading in South Africa Legal?
Binary trading is legal in South Africa. However, it is important to understand that no financial authority is currently regulating brokers and the way they conduct business within the country. In spite of the lack of regulatory authority, binary trading is regarded as completely legitimate and highly ethical. With more traders showing interest in trading options, which provides you with the possibility of making quick profits, whilst developing long-term investment strategies. Binary trading is well established in South Africa after traders began to get involved back in 2007.
However, the government or any other independent financial body has yet to look into developing policies and setting standard for brokers. This unfortunately means that users can sometimes fall prey to fraudulent practices and brokers. The lack of online regulation for binary trading does not necessarily mean this form of options trading is unsafe. There are a number of ways that traders can ensure their safety, whilst still participating in this new form of investment. As long as the brokers you are looking at within the South African market are registered with the proper authorities, traders can be confident in the services they are offering.
Binary Trading Broker Selection in South Africa
As investors are required to sign up with offshore brokers to start binary trading, there a few critical elements to consider before signing up in order to make an informed decision. Whilst some traders may view this as an unnecessary step, it is worth spending the time looking into each brokerage firm, in order to select the right one for you before beginning binary trading. You should consider the following five elements when choosing a brokerage firm that suits your trading style and needs:
- Registration and Licensing: This is an essential aspect of your brokerage search. It is crucial that you ensure the broker is registered and licensed with the proper agencies.
- Customer Service: It is important you have access to timely and efficient service when you are likely dealing with a broker in a different time zone.
- Diversity of Trades Available: A quick search of the web will highlight the variety of trades available so you can check with your broker to see which ones are offered.
- Platform: Choosing a brokerage firm offering a user-friendly platform is a must.
- Withdrawals: It is important to verify the payout and withdrawal details of a broker before signing up.