Binary options regulation in 2020 – Binary Options Hub

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  • Binomo
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2020 Binary is basically a broker for binary options trading. To get started simply sign up and make a deposit. From there the system and broker will begin making trades on your behalf.

What Is 2020 Binary?

According to Who.is, 2020Binary.com was registered May 14, 2020. The site is set to private.

You will, however, find that 2020 Binary is operated by SKYE Ltd and launched June 2020. SKYE Ltd is actually located in Bulgaria, yet the phone number listed is for the United States and the United Kingdom.

It is also important for you to know that 2020 Binary site does not allow citizens from the United States to trade using their platform. This could be due to the brokers are unlicensed and not regulated by CySEC.

The Product

Basically with 2020 Binary you sign up and open an account. You are required to deposit at least €500 in order to start trading. You can deposit more if you like, but at €500 that is equivalent to $526.62.

It is also important to note that 2020 Binary uses “Hello Market” platform in which they present expiration time frames for trades. The expiration time frames need to be closely monitored since there are 3-time frames you can choose from.

The first is the 10-minute time frame option that allows it to expire every 10 minutes. The second option is for the hourly time frame which expires every hour on the hour. Last you have the 45-minute option which can be tricky.

If you pick the 45-minute option you should know that it doesn’t count every 45 minutes, but expires at 45 minutes every hour.

An example is if you place an order at 2:40 and pick the 45 minute time expiration, the option will expire at 2:45, not forty-five minutes from when you placed the order. So do be careful when playing with the time lapse options.

2020 Binary site does not explain the trading fee. You see each time you trade, the broker receives a fee for initiating the transaction. The fact that the site doesn’t mention how much you have to fork over for every single transaction is a little suspicious.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

However, the fee could explain why you have to deposit €500.

The Verdict

There seems to be a lot of red flags for 2020 Binary. First, if you live in the United States you can’t use their platform. Yet, one of their main numbers is a United States telephone number.

Another major red flag is that the company is offshore making and have so many rules and regulations that you have to jump through before you can withdraw your funds.

While the site does mention how they can do all sorts of transfers for you, the paperwork and time involved make it very difficult to get any money at all. Plus they have a minimum of $100 that must be made before you can withdraw and a fee for you to withdraw.

The fact that 2020 Binary brokers are not licensed should also be another warning sign for you to steer clear. The fact that they don’t list their trading fees could be one of the main reasons why they require so much to be deposited to start trading.

This brings us to the last red flag. The amount of money that you have to deposit is unreasonably high. Many sites state that the minimum amount to deposit should only be around $250. There is no reason why 2020 Binary should be so high to start off with.

After all, €500 is a lot to hand over just to start out. It would seem that 2020 Binary is catering towards those who have more money to invest.

All in all, 2020 Binary doesn’t really seem like a company that anyone should get involved with. You will find a lot of reviews about 2020 Binary that is both good and bad. The thing is, though, if you can’t afford to lose the money, then don’t trade.

Binary options are not a guaranteed source of income and should be seen as a high-risk.

7 Binary Options

What is Binary?

The world “binary” means “something that has two parts”. And this is exactly how binary options trading is different from any other trading methods: it has only two possible outcomes – either a complete loss or a complete win. There is nothing in between. Underlying assets may include any currency, stocks, commodities such as gold, indices, etc. In the business world, the binary options trading is a simple way to put your knowledge of the market and its fluctuations to use and take advantage of it by buying put or call.

Need for Regulations

Binary options trading has become increasingly popular around the world and is currently is one of the biggest online trading activities. Traders enjoy this simple way of making money by simply predicting the movements of underlying asset prices. Unfortunately, fraudulent brokers are trying to catch up with the industry growth at the equal pace and rob those less experienced trades of their hard-earned money. To combat this disturbing tendency, many governments decided to implement various regulations to assure all traders have equal opportunity to trade safely and not worry about scams and unreliable brokers.

By now, most countries have their own regulatory bodies that control and issue licenses to binary options brokers operating in that particular countries. Some countries such as the European Union member states accept regulations by other countries. For instance, the most influential and powerful regulatory body in the EU is CySEC (The Cyprus Securities and Exchange Commission), which is located in Cyprus.

Some fraudulent brokers might falsely claim that they have a license issued in some particular country. But the truth is that it’s always the responsibility of a trader to double check and make sure that the broker they have decided to trade with has a valid license and therefore has passed all the necessary procedures and proved to be trustworthy.

Binary options trading industry can be tempting to less experienced traders that hope to earn a lot of money very fast without putting much effort. The reason for this might be the deceptive simplicity of binary options trading. With the choice being a plain “yes” or “no” it is easy to assume that there is nothing much to know. But nevertheless, it is proven that educating oneself about the possibilities on the market as well as various threats when trading is crucial to succeeding in binary options.

Therefore, there has been an increasing need to control the industry and help traders figure out which broker or trading software they can trust. It is necessary to protect investors’ funds from a plain robbery which some fraudulent brokers simply are. So how do those regulatory systems looks like in different countries and what do they exactly do? Let’s try to answer these questions together.

Regulation in the US

In the USA, the federal securities laws do not allow any company to offer or even sell securities unless they are registered with SEC (Securities and Exchange Commission) or there is an exception under which they don’t have to follow with this registration. The binary options contract terms are just the same: unless a registration with SEC is done or an exception is created, the sale of any options is considered illegal.

Nevertheless, some binary options related companies still operate as unregistered brokers or dealers. Any person has to register with SEC in case they provide any services associated with financial transactions or even being a third party to any sort of financial operation.

Another company called NADEX (North American Derivative Exchange) is a CFTC regulated exchange and simply acts to match buyers and sellers. When a binary trade takes place on the exchange where the buyer and seller agree on price, the exchange will charge a small exchange fee for the transaction on each contract executed. In our opinion, Nadex by far has the largest binary option presence in the US.

CFTC Binary Options Regulation

CFTC (Commodity Futures Trading Commission) regulates the US companies under the act of Commodity Exchange. Any company or an individual that provide trade-related services or give advice on trading in the USA have to be registered with National Futures Association (NFA). CFTC, however, assures transparency and open market for everyone in the industry.

Regulation in Europe

In Europe, the situation is quite different. The institution called CySEC (or The Cyprus Securities and Exchange Commission) that we had mentioned earlier is definitely the most influential binary options regulatory body in the region.

Since Cyprus does not have the strongest economies in the region, it is often thought that there is not much of financial regulatory regime in place and it is easy to invest there. However, the reason for investments in Cyprus being popular is the low taxes there. So brokers registered there actually enjoy many benefits just as other financial companies. Those attractive benefits being bonuses and very professional treatment. But the regulations are tough here too: any broker registered with CySEC undergoes complicated procedures and frequent checks in order to be licensed. We often hear of warnings being issued to those brokers that hadn’t met the requirements. At the same time, in our Broker section, we list many brokers that are CySEC licensed and therefore highly reliable to trade with.

Regulation in Australia

A big number of binary options traders comes from Australia as well as many recommended brokers. Australian Securities and Investment Commission is the regulatory body in this region. Any broker or binary options related company operated in the region has to be additionally registered with Australian Finance Services.

Australian traders are also allowed to trade with brokers that are registered in New Zealand. Australian traders are well-known for being highly educated about the industry, trading with high deposits and being very successful in their trading.

Regulation in the UK

The UK has always been known as number one when it comes to Forex trading . And since binary options trading is quite similar, it has also enjoyed a lot of attention here. Also, regulations here are very favorable to traders. UK-based binary options traders are free to work with UK-regulated brokers as well as the brokers that are regulated by any other regulatory body in the European Union.

Previously, binary options trading in the UK was handled by the gambling commission. But since 2020 it is regulated by FCA (Financial Conduct Authority, FCA). At the moment the entire country, however, is undergoing the transition period and we are eager to see what the outcomes will be like.

Regulation in France

In France, binary options are neither illegal nor regulated. Some binary options brokers were banned by The French Financial Markets Authority (AMF – Autorité des marchés financiers) in the past. But at the moment the industry remains a gray area that is yet to become more established here.

Regulation in New Zealand

The authorities of New Zealand have made a step towards binary options traders and not only made binary options trading legal but also did a great job in regulating and assessing the industry. The Financial Markets Authority (FMA) is the regulatory body responsible for assuring binary options is safe and secure in the region.

Regulation in Italy

Finally, the official Italian binary options regulator is called CONSOB. In this aspect, the Italian authorities are quite strict with their regulations and approval. In the past, companies trying to operate without an appropriate authorization in the region were issued fines that reached up to €500,000. Every broker in Italy has to undergo the necessary procedures and obtain a CONSOB license.

CONCLUSION

In the modern binary options industry that keeps growing day by day, the regulations are not only needed but necessary. But apart from any measures that individual countries or regions are undertaking to assure their traders are safe, the traders themselves have to educate themselves and stay informed about all the nuances when it comes to legal matter.

Binary Options Hub

Binary Options Broker Reviews

Binary Options Broker Reviews

Binary Options Hub strives to provide you with the best binary options broker reviews. Below you can find a binary options brokers comparison table that includes only trusted binary options brokers. Don’t know what binary options are? Check out the Starter’s Guide!

After the table with the best binary options brokers you can check the worst ones – binary options scams. Take care and avoid scam binary options brokers! After that, the binary options bonus from trusted binary brokers are displayed.

Top 3 Binary Options Broker Reviews

Check out Binary Options Hub’s list of the trusted binary options broker reviews. Quickly preview the main features at the table and click on the logo to read a detailed review. As a rule, US friendly binary options brokers are not regulated.

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CySEC Custom N/A% Sign Up
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

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Binary Options Scam Review

Trading binaries is great, but there are many scams out there. While trading binary options is risky, it is even riskier to trade with a scam binary options broker. Stay away from untrusted places and trade only with verified binary brokers. Here we will post a list of Binary Options Scams. Binary Options Hub list of shame is here to guide you about binary options scams so you can rest assure you are in the safe place.

If you broker is on the list below – run away, as it is definitely a binary options scam!

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N/A SpotOption 100% Scam Review
CySEC Cedar Finance 30% Scam Review
N/A TraderXP N/A Scam Review
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Best Binary Options Bonus Review

Looking for some extra trading capital? Check out great deposit bonus offers from the best binary options brokers. You can get a bonus from 30% to 100% and this way you can get more opportunities. Don’t go for the biggest bonus, go for the honest binary options brokers that offer the most suitable bonus for your binary options trading strategy!

Most of the binary options deposit bonus deals are offered on the first deposit only, so choose the broker wisely & start with the right deposit. Only best binary options bonuses below!

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Top Binary Options Broker Reviews

When it comes to trading binary options online, you should invest most of your time not only into education and the development of your binary options trading strategy, but most importantly you should focus on choosing one of the top binary options broker! This is vital, as setting up a binary brokerage is quite accessible these days and this is why there are many binary options scams.

Binary Options Hub is here to help you choose the best binary options broker, so you can trade safe in the knowledge that your broker will not trick you.

How to Choose a Good Binary Options Broker?

The first step in choosing your place for trading binaries should generally depend on your location. This is vital, as every trader should be going for a regulated company. Below we will describe what kind of options you have when it comes to selecting your binary broker depending on your country.

Regulated Binary Options Broker Reviews

Should you be located in Europe – you need to generally go for one of the CySEC binary options broker, as there are quite many. It is important to choose a broker that is regulated, as the chances your broker will not trick you are quite high. Binary Options Hub would recommend you to open an account with IQ Option, as this broker is not only regulated, but also provides easy deposit and withdrawals methods and amazing support.

If you are from the UK, be advised that currently there is no FCA regulated binary options broker. As you cannot find a licensed company in your location, it is advised to go with a CySEC broker too.

For the US traders the situation is even harder. There is currently only one NFA regulated binary broker – Nadex, yet Binary Options Hub would not recommend you to trade with it. As a US binary options trader, you can only choose an unregulated binary broker, but this should only be done with the high level of attention. There are many scams and most of them are actually looking for the US traders. In most of the cases, a CySEC regulated binary broker would not accept US clients, even under its offshore entity. This is why we would recommend you to open an account with CTOption, this is a trusted broker that provides superior trading conditions and welcomes US traders.

Should you come from the countries outside of the US, UK or EU, you should generally settle for the offshore entities of the CySEC regulated brokers. This way you will still be accepted and even though you are not going to open an account in the regulated entity, you would be trading in the company that supplies an alike type of services. We would recommend you to open an account with IQ Option as this brokers certainly supplies the best value for money and offers quite attractive deposit bonuses on binary trading accounts.

Binary Options Trading Platforms aka Binary Options Software

Another important aspect in choosing the best binary options broker for you is to select the one that supplies the most versatile trading platform. When it comes to selecting the best software for trading binary options online, you may consider a few options. In general, Binary Options Hub would recommend you checking its Software Review Section, this way you can get a good overview of the choices available to you. Trading software in this industry is still not so developed compared to the FX industry, still there are better and worse choices. If you are a beginner and are looking for a solid platform straight away, it is recommended to check SpotOption Platform Review and then to pick up one of the brokers offering this platform.

Binary Brokers Reviews of Options Scams

There are many scams in this industry, hence we would recommend you to contact us before opening an account with a broker not listed on Binary Options Hub in Binary Brokers Reviews.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Perfect For Beginners!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo
    Binomo

    Good Choice For Experienced Traders! 2nd place in the ranking!

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