Binary Options Traders Having a Field Day
So far this year, most investors have been crushed by market panic, China’s economic slowdown and a commodity crunch like few others in history. But when storm clouds gather for investors worldwide, binary options traders can have a field day. It all depends on the trading strategy that traders will pick, the time span they pick for each position they open, and their ability to react to sudden changes. To do this, binary options traders will need to read the markets well, which under the present circumstances, is surprisingly easier.
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CySEC Carries a Big Stick
Cypriot financial regulator, CySEC, which is well known in the binary industry, has handed out 2 hefty fines to 2 of the industry’s most iconic brokers. Both Banc de Binary Ltd and Rodeler Ltd – 24Option’s parent company – have been fined. Banc de Binary got a €350,000.00 fine while Rodeler got a €156,000.00 fine. The official announcement of the regulator’s decision in the case of Banc de Binary, gives scant details about the reasons for the fine, whereas the Rodeler fine has more detailed information.
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Oil Price and Political Bargaining
Recently there have been rumors about an emerging deal between Russia and OPEC to curb oil production in order to boost the price of the battered commodity in international markets. The greatest oil glut that the world has seen in recent decades however, was powered by increased production in North America mainly. Arguably, more fuel efficient engines and more advanced technology in other energy intensive sectors have also aided the drop in demand, apart from the Chinese slowdown. This means that even if Russia and OPEC manage to strike a deal – a move that seems quite unlikely – it will take some time for the supply glut to work itself out, and even then, the future of the oil industry still looks shaky. read more…
Islands of Stability in the Middle of the Turmoil
Recent numbers from China are keeping the negative sentiment in the financial markets so far. They add to the downward pressure on oil and most of the industrial metals, and bring about fears of a decline in the world’s aggregate demand. This generates panic in the financial markets, which in turn intensifies the negativity and heightens market instability. But the low commodity prices and the Chinese slowdown that have brought about turmoil in the financial markets, are not quite as steep as the markets show. Moreover, they cast a long shadow over encouraging news from other economies. read more…
Are Binary Options Legal In the US?
The short answer to this question is: Yes. 
BUT it is important to understand that there is a BIG difference between Binary Options being legal and a broker being regulated.
Most, but not all, binary options brokers allow US citizens with US bank accounts to open accounts. Originally, binary options were illegal in the US. In 2007 the OCC (options clearing commission) made a rule change which allowed for binary options trading. In 2009 the CFTC started regulating brokers and Nadex was the first to offer a range of binary options from different asset classes.
Binary Options Legality VS. Binary Options Regulation
It is important to understand that there is a difference between legality and regulation. Binary Options trading in the US is legal, however with the exception of the aforementioned Nadex and Binary Options offered on the AMEX, most of the online binary options platforms are not regulated in the US.
Binary options brokers have not been subject to specific laws which secure customers accounts and enforce fair play. Recently CySEC (Cyprus securities and exchange commission) enacted a law stating that all binary options brokers in Cyprus must be licensed and be subject to regulation. Most binary options brokers operate out of Cyprus, therefore this law will subject most brokers to regulations. SpotOption is the first of the platforms located in Cyprus to receive the CySEC license. Many brands use the SpotOption platform including TradeRush and Redwood Options which incidentally accept US traders as well. To see a full list of regulated US brokers, check this post.
Why Don’t All Binary Options Brokers Accept US Traders?
A couple of factors have caused some online binary brokers to prohibit allowing US customers.
The fact that Binary Options trading was illegal in the US
Some of the original brokers began when binary options were just becoming legal in the US and they shied away from allowing US customers until it took hold. Some of those brokers still haven’t changed the policy.
The effect of legislation prohibiting online gambling
Many online gaming sites had been heavily entrenched in the US market. When laws came into effect banning online gaming these sites took a tremendous hit as they lost a disproportionate share of their business. Some binary options brokers, fearing similar types of legislation which may prohibit, or limit binary options trading, are avoiding the US market altogether.
UPDATE : Banc De Binary stops accepting US traders due to CFTC ruling. See Full Article.
Future of Binary Options trading in the US
It is possible that as online binary options trading grows US lawmakers will look to impose legislation either limiting or regulating the industry. Reasons for this are twofold. For one thing they will want to enact regulations to protect the rights of US citizens to ensure that the deposits are protected and the trading is done fairly and securely. The second and most likely reason is to ensure that the US government is properly compensated tax wise in an ever growing online industry. Ultimately online binary options brokers may have to apply for proper licensing to be able to operate in the US.
GlobalOption is Owned By a US Corporation
In fact GlobalOption is wholly owned by Win Global Markets, Inc., a US public company trading on NASDAQ’s Bulletin Board under the symbol WGMI. GlobalOption not only accepts US traders, they are specifically geared towards the US market. Win Global Markets states the following in their corporate statement “As a publicly trading company, Win Global Markets adheres to the world’s highest standards for corporate governance. We were one of the first gaming companies to go public. As a result, we have a long track record of transparency and disclosure.” By trading with GlobalOption you can not only be assured of its legality, but the backing of the corporate regulations adhered to by its parent company.
Financial Markets – Preview for Week Starting 27th March 2016
Major Events of Last Week
Global equities terminated five consecutive weeks of gains by entering a new consolidation period towards the end of last week. The financial markets began to stabilize after experiencing extensive turbulence and volatility during the first three months of 2016. Investor confidence did receive a boost last Friday when the US Department of Commence revised the US Gross Domestic Product (GDP) for the last quarter of 2015 higher from 1% to 1.4%. This update enabled the US economy to register a final annual growth figure of 2.4%.The foremost US indices produced a mixed reaction last Friday epitomized by the Dow Jones Industrial Average rising just over 13 points; the S&P500 falling by 1 point and the NASDAQ climbing by almost 6 points. read more…
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