12/31/ · A complete ban on binary options trading for options having an expiration less than 30 days was announced on September 28, On 29 March, the Financial Conduct Authority confirmed that it was permanently banning the sale of binary options to retail customers. The European Securities and Markets Authority (ESMA) has agreed to renew the prohibition of the marketing, distribution or sale of binary options to retail clients, in effect since 2 July, from 2 October for a further three-month period. ESMA has also agreed on the exclusion of a limited number of products from the scope of the measure. Read Finansinspektionen’s news about the ban against binary options. ESMA updates the ban. ESMA has now, after three months, reviewed the ban and chooses to uphold it. (Swedish) More information about binary options. Binary options are a high risk deal .
ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors
The ESMA ban on binary options has been extended again, and in all likelihood, the ban is likely to remain in place indefinitely. So with a blanket ban on the marketing and sale of binary options in Europe, is there anything traders can do to continue trading? The ban was and still is temporary, for a 3 month period, with the possibility of renewal when said period is up.
Since then, ESMA has constantly renewed the ban, and have announced they will do so again when the current period is up, on the 2nd of January The Authority will probably continue to renew this measure indefinitely, so EU customers are not likely to trade Binary Options anytime soon, at least not with regulated brokerages.
Currently we are dealing with a black and white situation, without much room for interpretation: binary options cannot be marketed, sold or distributed to retail clients. However, as you will find out next, these exceptions are almost impossible for the brokers to implement while still making enough eu binary options ban to avoid bankruptcy.
It basically means that on any given trade the worst outcome is you get your money back, including all commissions and fees, eu binary options ban. The other outcome is to win the entire payout. While the first 2 conditions are pretty straightforward, the last one may need a bit of clearing up: the brokerage should have no interest in the outcome of the trade. In other words, the old conflict of interests where the brokerage would make money when you lose a trade should completely go away.
Remember that all three conditions are cumulative, so it will be extremely difficult for a brokerage to implement them all at once and to make this type of binary option both lucrative for them and appealing to traders. In short, yes. There are some viable ways to continue trading. One choice we are not going to expand on is using unregulated brokers — this is high risk and fraught with danger, to the point where it should not even be eu binary options ban. One downside to the ban, is that it does nothing to address the scams.
They operated outside of the eu binary options ban anyway, this ban will not change their behaviour It may even embolden them as they know the European regulator has no appetite to chase them. Only use regulated brokers. So with that said, let us move on to some genuine ways you can carry on trading. This choice will only be open to certain traders. You need to prove a certain amount of trading experience, and trading capital, eu binary options ban. Assuming you can, then you can register as a professional trader.
Brokers can lawfully offer you binary options again. The downside is that you sign away any regulatory protection, eu binary options ban. You are basically saying you eu binary options ban financially aware enough to use high risk products. It is a great choice for experienced traders and indeed, many have already taken this step to continue trading just as they were, eu binary options ban. Many brokers have created similar products to binaries, but made them different enough to dodge the ban, eu binary options ban.
Expect more to follow. While not strictly binaries anymore, many of the same strategies will work. One note of caution however, is that ESMA are watching these products closely.
If they feel the ban is being flouted, they may insist the new products are removed too. This option needs some detective work.
ESMA will allow European traders to trade under a different arm of the same brand — as long as the request came from the trader — the brand themselves are not allowed to market this as an option for their customers. ESMA have already reprimanded a couple of brands for trying. But as long as the request comes from you, the trader, then it is ok for the broker to facilitate that change for you.
Once operating under another regulated arm of the business, you can access binaries again. So get the deerstalker on and see if your broker has regulated branches in different jurisdictions.
So with these choices, it is possible to carry on trading, possibly without even leaving your current broker, eu binary options ban. There is also absolutely no need to look at unregulated firms. So the ban on binary options does not have to mean the end of your binary trading.
ESMA Binary Ban: Is Binary Options Trading Really Banned in Europe? What Are Our Options?
, time: 8:04Ban - How To Avoid The ESMA Ban On Binary Options - blogger.com
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. 3/30/ · The ESMA followed through with its plans to ban binary options within the EU. The regulator, acting the interests of consumers, have issued a blanket ban on all brokers, trading and options with a limited time frame and all-or-nothing payout. According to the press release, the ESMA concluded that there posed a significant risk to public safety that needed to be addressed and we applaud them on . Read Finansinspektionen’s news about the ban against binary options. ESMA updates the ban. ESMA has now, after three months, reviewed the ban and chooses to uphold it. (Swedish) More information about binary options. Binary options are a high risk deal .
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