Is it legal to trade binary options in Australia?
It is legal to trade binary options and the practice is regulated in Australia. You can therefore engage in this type of trading by using local Australian brokers, as well as those not located in Australia. Since there are many good binary options traders located, regulated and licensed in other countries such as Cyprus, Australians may also trade with these brokers if they prefer.
Financial trading in Australia is governed by the Australian Securities and Investments Commission (ASIC). This is one of the major regulators of binary options trading outside of the USA and is widely viewed as one of the most innovative regulators for providing protection to retail investors.
As Australia is major financial hub and the binary option investing market is booming in the country, it is not surprising that the Australian government acknowledges that binary options trading is a legitimate financial instrument. This has paved the way for a clear and sound regulatory framework that enhances the security of Australian investors when they trade binary options. ASIC’s efforts ensure that brokers comply with and adhere to a set of rules that allows traders to invest with peace of mind and confidence.
An initial requirement for brokers in Australia is to obtain an Australian Financial Services License (AFSL). Requirements include minimum capital requirements and a well-capitalized structure to ensure that brokers are able to meet their obligations regardless of external factors. In addition, the company’s operational funds must be kept separately from clients’ funds, with the latter being held in trust accounts to safeguard investors’ finances.