The state of the binary options market after the ban ESMA

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How does the binary options market feel after the ESMA ban

This year there was a significant event with a minus sign for traders in financial contracts. The European Securities Market Authority (ESMA), which is committed to monitoring the OTC market, has banned binary options brokers in the EU. In addition, a number of restrictions received Forex-brokers and dealing centers.

The ESMA directive consists of several guidelines:

в—Џ limitation of leverage;

в—Џ entering a standard for risk warning;

в—Џ open access to the statistics of profit / loss traders;

в—Џ prohibition of advertising;

в—Џ prohibition of bonuses and promotions;

в—Џ Protect traders from negative balance.

Restrictive measures for brokers from ESMA

The first measures to restrict over-the-counter trading were taken in July, and at the end of the summer, the regulator extended bans until the end of the year. According to the ESMA decree, binary options advertising is now banned in the EU, and CFD trading has received new leverage limits. For example, trading in major currency instruments in the European Union is now limited to 1:30 leverage. Brokers were also obliged to warn about the risks of a single standard and provide statistics on how many traders lose money on trading in financial contracts.

The ESMA decision has been brewing for a long time — trading in financial instruments has always been fraught with risks, so the main task of the service was to protect traders from large financial losses. Dissatisfaction with this decision was expressed by both brokerage companies and traders who successfully earned on trading contracts.

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Restrictions on trading affected the so-called retail traders, while clients with the status of “professional” can still trade in financial assets. At the same time, traders are guaranteed protection against negative balance. In such conditions, non-European trading platforms, which are not covered by the ESMA rules, have come to the fore.

One of the points of the ESMA prohibits the promotion of clients of companies in the form of bonuses – if earlier, registering with one of the European brokers, users could receive an addition to the deposit, now it has become unavailable. It was also introduced a taboo on other customer incentives.

The ESMA restrictions bypassed countries where the financial contract market is regulated by a local authority. In Europe, this country is Switzerland, where strict regulatory rules have been in place for a long time, and companies entering the Swiss market must meet high requirements.

The ban is temporary in nature – at the moment it is valid until the end of the current year. At the same time, representatives of brokerage companies are negotiating with the department in order to achieve relaxation in restrictions and reach a consensus on the issue of providing services to traders in trading certain types of contracts.

The introduction of a minimum expiration of contracts of 90 days is considered as laxative measures, each trading instrument must comply with the European Directive (2003/71 / EC), and for companies providing brokerage services there should be no additional profit from transactions other than the established commission.

How to continue to trade contracts after the ban ESMA

Many of the bidders who reside in the EU do not want to put up with the situation, and therefore are looking for opportunities to trade without restrictions. But, as you know, the medal has two sides – on one side, the actions of the regulator are aimed at ensuring that residents of European countries do not lose money in the industry; on the other hand, tight restrictions push traders into unregulated markets, where the risk of losing money is even higher.

Brokers do not stand aside, and by feasible methods are trying to return customers. Some declare that they are not registered in the Eurozone, so the ESMA jurisdiction does not apply to them. Others hint that the regulator directive can be circumvented if desired. However, it is the first option that is most preferable, since among non-European brokers there are worthy representatives who have been working in the market for several years.

These include trading platforms that are legally based outside the European Union. These include the company Barium. The company began its activities in 2020, and over the years has achieved the location of users from Russia and the CIS countries. The fact is that this is the first trading platform focused on the Russian-speaking audience.

Binarium has loyal terms of trade. The minimum deposit is only $ 10, and the nominal value of one order starts at $ 1. To obtain a special status, you need to replenish the balance in the amount of more than $ 200, in this case, the trader will have access to special applications – the trading room and “Trends”.

Signals from a professional trader are given in the trading room and analytical reports are provided. The “Trends” application allows you to detect emerging market trends in the background, with one click to go to the asset chart and make profitable deals.

Since the Russian broker Binarium does not submit to the jurisdiction of the European Union, it is not subject to a restrictive ban on shares and bonuses. Therefore, each new client can receive a deposit bonus of 100%. In addition, Binarium arranges promotions for existing customers, for example, free tournaments with a real cash prize pool.

The withdrawal of funds is carried out on the cards of banks in Russia and the CIS countries, as well as on popular payment systems. The minimum amount for withdrawal starts at $ 5, and the transfer time from the time of the application is about an hour (for confirmed accounts).

Trading in financial contracts carries with it the risk of losing capital. This was the reason for the introduction of bans on this type of instrument in Europe. If trading is not approached seriously and opening positions at random, the loss of money will be a matter of time. But with trading skills and using indicator strategies, traders make profitable trades and get a steady income.

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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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 European Union. Advertising, like the most binary options, was inaccessible to ordinary traders with the EU for a long time. Professional traders had access to the binary options of the EU. But, especially from the latter, they did not hear anything whether there were difficulties and who fell under the classification of professional traders. Many of the platforms, according to the bad tradition that took place in the field of binary options, refused to follow the decree of the regulator. And they were left without a license. Many chased at all. In general, this was not news for the industry, but innocent traders and options have suffered. But, traders who remember the “Israeli stage” of binary options were not very surprised by this turn of events.

What has changed during this time in the binary options industry

Analyzing many other sources of information, we can highlight a positive trend in the field of binary options. Old projects were chipped, not so many new players appeared on the market. Most of them have become more conscientious about their customers (traders). Trading has now become much more relaxed even outside the European Union. The market was redistributed among large companies that occupy leading positions in this industry. It should be noted the growing interest in binary options from Latin America, Indonesia, Thailand, China and other countries of the world. Earlier, the popularity of options was concentrated to a greater extent in the countries of the European Union and the CIS. Now, in the light of recent events, we see a good upward trend in the options market around the world. Many analysts fear deja vu amid past events. But, such a scale as before will not be. Traders have become more vigilant and more careful about choosing a trading platform.

The real situation after the lifting of the ban on binary options in the European Union

First of all, it should be noted that none of the major brokers is in a hurry to return binary options for the EU countries. They were successfully replaced by FX options, which became an alternative for many traders. They did not manage to get wide distribution. Affordable forex options are still available at several major brokers. Some time later, after the ban was officially lifted, we did not notice that trading platforms began again to offer binary options trading to traders from EU countries. We will keep track of this moment in the future. Nevertheless, we hope that after a long pause, binary options will begin to return to the European Union in small steps. In the meantime, there are many other trading tools that have managed to replace options for many traders during their absence. The long return of binary options to the European Union is also evidenced by the low interest of potential traders in search engines. All these factors influence the return of many beloved trading instruments to Europe by many.

ESMA is watching you

The official lifting of the ban on binary options has not caused much excitement, as many expected. Everyone knows the cool temper of this regulator. First, hold the toy in your hands, and then pick it up. In its official publication, ESMA made it clear that it will continue to monitor this trading instrument and tighten control over it. Such a trial period, which is not defined by the time frame. What will happen from this – directly depends on binary options brokers. To be honest, from the good faith of the latter. If everything goes well, then binary options have a very good chance to return with new forces to the European market. Will it be? It all depends on brokers to a greater extent and the awareness of most traders. With their increased vigilance to brokers, fraudsters will find it very difficult. Their life cycle will become very short. With the assistance of ESMA, we will get a good bunch to limit the influence of such companies on the authority of a trading instrument.

Conclusion

I would like to note a positive trend in all of the above. After all, we will witness a new stage in the development of binary options as a trading tool. If everything goes smoothly and in the EU, trading platforms will return binary options for trading to ordinary traders. And, this will not cause negative consequences, the growth and popularity of this trading instrument will increase significantly. And, as it really will be, time will tell. Follow binary options with us. We have a lot of useful information on the site. See you in new publications.

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Big Sign-Up Bonus!

  • Binomo
    Binomo

    Trustful Broker. Recommended Only For Experienced Traders!

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