Are Binary Options Trading Legal? Learn with Traders Union
Technology has turned this world into a global village, everything has become accessible with the invention of the internet. Financial markets have also become easier to access with time. The internet has made things easy, even trading has become simple. People are becoming more aware of financial markets and the binary options trading market is becoming popular among investors. It makes trade way easier and more accessible but is binary options trading legal is binary options trading legal? We will find out about it in this article.
What are Binary Options?
Before explaining the legality of binary options, let’s learn about the term itself. Binary options are instruments that could help people earn profits through their investments. Trading in past was difficult, finding the graph of a company was hard but through the internet, it has become easier. Binary options make it easy for investors to find the price of assets, they can determine if the market is going towards profit or loss.
Earning profit through investments in financial markets has become easy with the binary option but there are still setbacks. Investors can only speculate, which can be wrong. If investor determines the wrong change, they might lose money instead of earning profits.
Are Binary Options Trading Legal?
It depends on your location because many countries have banned this practice while others consider it a legal option. So, the legality of the binary options totally depends on the location of the person. Some countries have legalized it by regulating it through financial authorities, while some consider it completely wrong. Some Islamic countries consider it illegal because it lies in the category of betting, which is considered Haram in Islam. Some countries have termed it illegal because regulating it is a little difficult for the authorities. So, which countries allow it and which don’t, let’s find out below:
Countries That Allow Binary Trading
In the US binary trading is considered legal, US has regulated binary trading and uses different methods to control binary trading. Brokery and trading in binary options are completely legal in US financial markets; however, the country follows strict rules which makes trading complicated.
The UK is among the pioneer countries that legalized binary trading, the country was the first to allow brokerages to do business here. The laws of the UK are pretty different even compared to the other EU countries. In the UK investment and broker of binary trading are allowed completely. South Africa, Australia, Cyprus, and Japan allow binary trading and brokers in the country.
Countries That don’t Allow Binary Trading
Canada is at the top of the list where binary trading is considered illegal, however, people can trade with brokers outside of the country. Binary trading isn’t regulated in the country but people can trade with brokers outside the country. Most of the countries in Asia don’t allow binary trading. Binary trading in many Asian countries is considered illegal. Many Islamic countries in Asia have termed it illegal because it is the same as gambling which is forbidden in their religion.