Ever since binary options made their appearance in the financial trading industry, its popularity has been on the rise ever since. A very large number of people have made binary options their primary focus in trading.
We wanted to take the time and explore how popular exactly are binary options in South Africa and why, so we wrote this article to explain it in detail.
Why are Binary Options a Preferred Trading Choice for South Africans?
To better understand the popularity of binary trading in South Africa it’s important to explain what are the main characteristics of binary options trading.
Binary options are a simple two choice trading process that offers fixed payout in a specified timeframe. The whole process is founded on the prediction of asset price movement on the market. Obviously, you can either get the prediction right or wrong. There is no third option. Like we mentioned, the payout is fixed and know in advance, and the same applies to a potential profit or loss that may occur.
The asset price can go above the strike price or it can go below the strike price. When you place a trade that goes for the price rise then you put the Call option, and when you decide that the price might go down, you’d need to select the Put option.
The reason why most people choose binary options as their go-to trading choice is because it offers both short and long term expiry times. This means that you don’t have to wait for months or years for your trades to go through. Typically, expiry times in binary options range from one minute to a couple of weeks.
Binary options also offer the possibility of using a plethora of trading tools and strategies that you can generally customize in order to boost your chances for higher profit.
Legality of Binary Options in South Africa
We are happy to report that binary options trading is completely legal in South Africa. There are multiple binary brokers whose platforms are available for South Africans. This also means that you need to be extra careful when choosing your binary broker as not all brokers will be regulated or suitable for your individual needs.
While on the topic or regulations, we feel that it’s important to highlight the caution traders need to exercise when choosing a broker for themselves. Regulated brokers are certified and obligated to adhere to a larger legal framework according to a local regulatory body, which should ultimately protect the trader.
Having said that, it is important to keep in mind that even regulated brokers are not a good fit for every South African trader. This also implies that not all unregulated broker are scams, so traders need to do their due diligence when it comes to choosing a binary broker. Review their sites, read our broker reviews, check out guides and ask a lot of questions if you are unsure if a specific broker is for you.
Are Binary Options Brokers Safe to Trade with?
In order to start trading with a selected broker, you need to register and make a deposit. It is important to know that brokers are not allowed to share your personal and financial information with any third party company or software.
As far as location goes, you can find regulated and unregulated brokers pretty much anywhere. To narrow it down, a significant portion of them is located in Europe while the rest can be found worldwide. In order to stay on top of your game and choose a binary broker that fits you, be sure read all available reviews about the specific broker, as well as any other helpful information on their designated sites. You want to look for a broker that is transparent about their process and methods with a working and professional customer support.
Most South African traders opt for European based binary brokers as they are likely to have a license to operate and need to follow a set of legally binding rules. In this context, regulations are set in place so that South African binary options traders can be protected from scams and fraudulent activities.
If you are the type of trader who isn’t fond of manual trading, then you might consider registering with a BinaryOptionsRobot instead. This binary software is specific in the sense that is totally free of charge and it offers complete control over your investment strategies and financial portfolio. BinaryOptionsRobot offers binary signals that notify the trader of a possibly lucrative trade that has been found thanks to robot’s ability to scan the market and pull relevant information from it. Once you receive the binary signal you can then accept and place the trade. This semi-automated way of trading streamlines the trading process and cuts your trading time significantly. it is important to say that BinaryOptionsRobot offers its services for South African traders too.
Binary Options for South Africans
We also believe it is important to mention to South African traders that since there are strict payment options and tax regulations, that majority of brokers are not inclined to accept South African residents as traders on their platforms. For this reason, be sure to get correct information about payment methods and withdrawal process from a broker of your choice so you don’t get any unpleasant surprises.
Binary options trading is completely legal and extremely popular in South Africa. However, like we said, not all brokers are a great choice. There is a huge supply of great broker reviews out there that we urge you to read. It is important to base your decisions on facts, both when choosing your broker and during the trading process itself.
Trading binary options is an exciting part of the South African financial industry as it offers a very dynamic environment and is great for traders who are able to learn fast and appropriately apply the gathered knowledge.
Traders need to be able to trade knowing their financial strategies and decisions are under their own personal supervision. Stay away from a broker who promises 100% payouts as that is simply not possible, and often indicates a scam platform. Gather information, talk to other binary options traders, read FAQ pages on broker’s websites and above all, take the time to learn about binary options trading and methods of investing.