The Legality of Binary Options

Published: 27 October 2016 Updated: 14 May 2023

Arguments about legality binary options have arisen since the appearance of this trading instrument on the market. Many state that it is a fraud scheme, others convince in the full competence of the binary option as a legal instrument of exchange trading. We decided to make a simple analysis based on the realities of the private binary options tradingand on the basis of this we propose to make a conclusion about the legality of binary options for ordinary private investors.


Binary options - the concept of and history

Binary option has been widely used in private trading since 2008, when the regulators included this instrument in the register of official exchange contracts and began issuing licenses to brokers to provide services in this area of the financial market. The question arises at once - what can be argued about the legality of the binary option, if such a respected government agencies confirm its validity on the market? But people are very difficult to change their minds, so let's continue.

Binary option is a type of contract, and, as we said, a legal exchange contract, which uses a simplified mechanism for profit, derived from the principles of the classic vanilla option, which is available on Chicago Stock Exchange large corporate investors. The basic conditions for making profits on a binary option include the principle of betting on the direction of the price of the underlying asset. Simply put, the investor does not directly buy or sell the asset, but bets a certain amount of money on the decrease or increase in quotations.

The Legality of Binary Options

In this case, a binary option differs from other financial instruments of the market a high level of fixed income, up to 90% and a clearly defined amount of losses - 100% safes.

Of course there are opportunities for fraud, mostly for brokerage companies. But you can encounter such a situation not only on the binary market, there are cheaters everywhere - even buying chewing gum in a store you can lose money or buy a fake!

Read more about binary options fraud read here (original, English text)

To correct the situation in this matter it is necessary to choose the right partner for binary trading. A professional system broker with a good reputation always offers approximately this list of services:

  • Regulator license
  • Accurate quotes for the underlying assets
  • A wide range of tools for trading
  • Minimum parameters for market access
  • Professional trading terminal
  • Maximum quick and easy withdrawal of profits
  • For example, a broker Binomo (bonus 100% to deposit by promo code REVIEWEEK100 - Activate), which has an excellent reputation and fully meets the parameters of a professional platform for binary trading.

Binomo broker

Let's return to the legality of binary options. An additional confirmation of the legal jurisdiction of binary options and private trading with this financial market instrument, as we have already mentioned above, are the licenses of regulators of the countries with the most developed financial system and stock markets.

Of course, it is worth noting that some Western countries have completely banned private binary trading on their territory (France, Belgium), but along with trading options in these countries, Forex is also banned, which raises no doubts in terms of legality. The government just completely restricted the access of its citizens to financial transactions on stock exchanges.

In addition to the official confirmation of the legality of binary options from the state authorities, we can quote the feedback of traders, who have been successfully receiving a consistently high profit for many years, and are fully confident in the prospects and the legality of binary trading.

To the skeptics, who in most cases claim illegality of binary options, because of the loss of their own investments in this direction of the market I would like to say - "Your own mistakes and failures, do not give you the right to talk about the professionalism and legality of binary options!"


[featured feattitle='Reliable broker' site='Binomo' ]Broker Binomo has an excellent reputation and fully meets the parameters of a professional platform for binary trading.[/featured]

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