Category Archives: Binary Options

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Binary Options No Longer Allowed in Israel

By: DailyForex.com

In a major escalation, the Israeli watchdog has come down strong on binary options trading. The Israeli Securities Authority (ISA) announced today that it will not approve trading on binary options and that any company that offers them will not be regulated in Israel.

In addition, any company that offers binary options trading in its line-up of investment products will have its license rejected unless it reports to the ISA within 30 days that it has ceased all trading binary options operations except those needed to complete funds withdrawals, account closures and closing positions.

In explaining its drastic move, Chairman of the ISA, Prof. Shmuel Hauser, suggested that binary options were just one of the many investment opportunities offered to traders that camouflage their true risk factors and which can cause undue damage to innocent investors. He compared binary options to gambling games and said that “binary options activity will hurt not just all clients (including sophisticated investors) but the reputation of the entire market.”

Hauser added that going forth, the ISA will work to ensure that the “jungle” of unregulated investments will not be offered in Israel and that all investment companies will be required to follow the same regulatory laws.

The harsh decision did not come as a total surprise. Several brokers in Israel, such as iTrader, saw the writing on the wall and have already switched over to Forex trading. iTrader is now branded as iTraderFX.

Interview With Ben Myers of YesOption

  1. 250x250Tell us a bit about your background.

I grew up in leafy Hertfordshire, on the outskirts of London, in a town called Borehamwood, made famous for its film studios. I remember being a bit of an entrepreneur from a very early age, supplementing a paper round with a paid-for photocopying service to classmates by using a photocopier at my father’s office which of course was free.

I was lucky enough to be able to attend a good school in Queen Elizabeth Boys School, Barnet, working part time at a number of retail outlets in different industries, which is something I would recommend all teenagers do, especially those going to an all-boys school starved of female contact.

By the time I graduated university with a degree in financial studies and accounting, I had already built up a small but profitable portfolio of penny stocks, primarily in the mining sector. 6 years in the banking world followed, initially with HSBC, then Bank of Ireland and Bristol and West, and this provided a solid grounding in the world of international finance and allowed me to really fine-tune my skills and experience in investment.

  1. How did you get interested in finance/trading?

My love affair and fascination with the financial markets begun shortly after my 13th birthday. Along with the usual assortment of shavers, pens and briefcases every Barmitzvah boy gets given, I was gifted 20 Pounds worth of penny shares in a small UK-based printing company called Rotaprint. (You never forget your first!) The company did actually go bankrupt about 5 months after my gifted ownership (I hope not related), but by then I was already hooked on the concept of profiting from the financial markets.

  1. I heard you had your own investing firm. Tell us about that – the challenging parts and the rewards.

Having qualified as an investment advisor and benefited from an interesting career in banks, I took the plunge and set up for myself. I managed to obtain some small funding from a governmental programme aimed at assisting young entrepreneurs which proved a godsend, allowing me to finance some early marketing and slowly but surely I built up a good strong client base, renting out a small office (more of a broom cupboard) from a friend.

The most challenging part of running my own investment firm was the self-discipline needed. Having purchased my first property aged 27, I turned a spare room into an office and it was the first time in my life that my self-discipline was truly tested. Every successful trader must demonstrate self-discipline and being the owner of my own business and responsible for so many aspects of running a business meant the need for self-discipline was heightened even further. It did prove a challenge for a single person in his twenties but I learned a great deal about the investment industry and more importantly myself in this period and am forever grateful for having that experience.

I loved being my own boss and being able to dictate to a degree my workload. I also loved the interaction with clients and being in a position to improve their financial circumstances and this is something that still gives me great pleasure today.

  1. You were in the Forex world before changing to binary options – can you tell us about the differences? The advantages of each? Where are you happier?

After selling my company and the client bank, I took a bit of time out to enjoy life, pottering around on a boat on the East Coast of England for a while and even dabbling in antique and art dealing. However, the lure of the financial markets proved too strong and it wasn’t long before I found myself as Chief Analyst at a large Forex broker. It was here that I really developed a knowledge of the currency markets, having previously specialized in stocks and commodities. It was also here that my first articles were published on DailyForex!

At the time, the Forex industry had undergone a vigorous change, no longer the preserve of just financial institutions and professional traders. Regulation and advances in technology made Forex trading accessible to anyone with a credit card and a computer, which is a similar story with the meteoric rise of Binary Options.

There are many major differences between the Forex and Binary Options industry; the main ones being that Binary Options carries less risk, is more fast-paced and offers those with little or no financial experience the opportunity to profit from the financial markets. Remember, in Binary Options there is no leverage involved, and you do not physically own the asset itself, just merely speculating on its direction. For me, Binary Options wins over Forex. I love the quick nature of Binary Options, the fixed and fast returns and the varying innovative methods of profiting from an assets movement.

  1. Why did you decide to join YesOption?

I made the move over to Binary Options in 2013, becoming chief analyst at YesOption. What really impressed me about the fledgling company was the people and the ethos. The team behind YesOption are all traders themselves, with many years’ experience in the financial markets, both in large banks and in Forex firms. Everything at YesOption is aimed at improving the whole trading experience and ultimately making it more profitable for its clients. YesOption were the first to have Forex and Binary Options together from the same platform and account, which allows profiting in all market conditions and ensures that anyone can implement a successful trading strategy from 60 seconds onwards.

YesOption are committed to customer satisfaction and this has been recognized within the financial trading industry with a number of awards, including the highly coveted DailyForex Best Technical Analysis Award for 2014.

  1. Since joining YesOption, have you seen the binary world changing?

In just a short space of time, the Binary Options industry has undergone massive changes. More and more companies have sprung up, regulation tightened and the industry as a whole has become a lot more transparent and a lot more exciting – all to the traders benefit. Advances in technology have enabled companies to offer more instruments to trade, whilst increased competition has pushed the return amounts higher – meaning traders have more ways to profit and more profit to be made.

What is exciting about Binary Options is that it is still developing and growing. Forex kind of reached a peak in terms of development a few years ago, whilst new assets, new instruments and innovations are happening in the Binary Options world all the time, making it something that both excites me and intrigues me.

  1. How do you feel about the state of the markets these days?

The markets in their current state offer something for everyone. Many analysts believe that the markets are a true reflection of the underlying fundamentals in a market and with good cause. However, as a planet we are getting smaller and smaller. News from around the globe travels quicker than ever before and right now there are so my geo-political concerns in so many places that fundamental analysis cannot be ignored.

Without the aid of a crystal ball, it is nigh on impossible to predict what is going to happen, but what I do know is, that there is plenty of profit opportunities to be had right now, with strong volatility ahead in all sectors

  1. Tell us about your other activities:

Being married with a 9-month-old baby means, any other activities are limited to baby friendly ones. I still enjoy sailing when I can and still very much enjoy watching my beloved Tottenham Hotspur (a football club) but the bulk of my activities these days involve nappy changing, preparing bottles and trying to catch whatever sleep I can get. Saying that, I have got quite into the whole Bitcoin and digital currency revolution and am intrigued to see where it is heading. I have been devoting more time researching and trading BTC/USD and am fascinated by its unknown future and raw volatility.

  1. Do you lecture or give seminars?

I used to hold webinars and seminars when working within the forex industry, however these days I work closely with the HNW clients of YesOption on an individual basis, but still give the occasional webinar. I have also been asked to speak at a few seminars regarding Bitcoin, as well as being a contributor to the BBC regarding digital currencies.

  1. How many hours would you say is a good time to watch the markets daily? How much is too much?

That is a great question because I am a firm believer that traders should spend all day glued to their screens. Unfortunately, for me it is part and parcel of my job, but successful traders only focus on a couple of assets at most anyway. This means they should know and understand every little nuance about those assets and do not need to spend hour after hour staring at the screens. This is a big danger when spending too much time watching the markets that you are unable to see the wood from the trees. I personally recommend spending no more than 1-2 hours a day watching the markets. Anything more than that and you run the risk of being distracted and losing focus on a game plan.

  1. What advice would you give to investors, both new and experienced?

Well the obvious piece of advice to all investors is to do their trading with YesOption. However, in all seriousness I would recommend to new traders to know thy asset. Focus just on one asset, two maximum and study that asset until you know every little thing about that asset. This will make investment decisions easier and more profitable. I would also recommend to both new and experienced traders to manage their time and money effectively and within their own individual capabilities.

Trading and profiting from the financial markets isn’t rocket science. Do you your homework, stay disciplined and committed and learn how to deal with losses as well as wins, as both will happen, but how you react to them both will affect your ultimate success in financial trading.

TechFinancials Introduces its New Mobile Applications

TechFinancials is one of the leading binary options providers, and the company recently announced the launch of its mobile application. The focus of their new mobile application is to provide tablet traders with a simplified user interface and indeed the screen is filled with an intuitive design that employs a host of clear graphic elements. Traders can view their positions and open orders, do simple charting or view account status all on one screen.

According to research conducted by the firm, investors are using tablets more and more for financial intentions and TechFinancials’s new mobile application allows binary options traders to stay on top of what is happening in the binary options market 24/7 from wherever they happen to be.

Forex brokers have been offering their clients mobile trading for some time now and it has become exceedingly popular. (You can see our list of top mobile brokers here.) Binary options brokers as well as retail traders should find this latest TechFinancials application an essential addition to their trading experience.

With the launch of its new mobile application, TechFinancials joins a growing list of binary options technology providers including Tradologic and Marketspulse, which have been offering mobile trading options for some time now.

 

OptionBit and OptionXP Receive CySEC License

OptionBit and OptionXP have worked hard to reach the ranks of leading binary option brokers in Europe. The icing on the cake is their recent acceptance under Cyprus Security and Exchange Commission regulation (CySec). CySec regulation ensures traders of total privacy and optimal security by brokers in all their trading endeavors.

Joining other major binary options brokers recognized by CySec, such as TopOption , Power Option and Option Winner, OptionBit and OptionXP may now legally conduct operations in all European Union countries. Both OptionBit and OptionXP are domiciled in Nicosia, Cyprus and offer traders options on stocks, currency pairs, commodities and indices.

OptionBit is one of the oldest binary option brokers and has been around longer than most of the others. Founded in 2009, it offers a trading platform that is far more sophisticated than most brokers. It also boasts its newly introduced Algobit, an in-house technologically developed algorithm that spots an upcoming trading trend and sends a signal to the trader when the time is right to enter a trade.

OptionXP, founded in 2011, is a sister binary broker with OptionBit and is operated by the same company. OptionXP uses the Tradologic platform for their option trading. In addition to the standard binary options, they also offer exotic option trading and over 100 assets to choose from in around the clock trading.

The newly acquired CySec regulation will further enhance the position of both these brokers as leaders in the binary options arena. It’s worth noting that while regulation may be important, there are other factors to consider when choosing a binary options provider. To see a list of all of our top recommended brokers, click here.

 

Binary Options and Gaming: A Robust Pair

June may be months away, but the binary options industry is already busting out all over. In an increasingly competitive market, online Forex brokers worldwide are stretching their boundaries in search of ways of adding binary options to their rosters to expand their offerings and to attract a new trader base. Gaming websites are also expanding in the binary arena, branching away from traditional gambling enterprises towards options with a stronger financial slant, while binary options brokers that have been in business for years are expanding their enterprises into manifold different brands without publicly addressing these relationships.

Binary options trading as a way of generating income is not a new phenomenon. In fact, it has been practiced for over 30 years, showing up from time to time on certain trading platforms in closed markets. Those incidental binaries were nothing like the modern binary options that are popping up on a grand scale throughout the investment arena.

Only since 2008 have binary options been offered in major markets. Until that time, lack of standardization and regulation prevented this instrument from moving forward. When the SEC finally allowed the Options Clearing Corporation to offer them to the public, the investment community took notice. The American Stock Exchange was the first to offer binary options and the other markets were not far behind.

In addition to the limited sense of security implied by the recently introduced rules and regulations that were absent over the years, investors are drawn to binary options because of the transparency of the trading system which, by its very nature, tolerates less swindles and frauds than other financial vehicles. That being said, it should be noted that scams have been reported in the binary options industry, as in all financial markets, and traders should trade cautiously.

Technology has also played a key role in the popularity of binaries. And it is due to today’s simplicity in trading and the quick profits that can be made that what was once its own separate investment concern has now become entwined with a variety of other enterprises.

From Gaming to Binaries

Moving from the world of online gaming to binary options trading would seem to some as taking a huge step out of the box. But several casino sites have made the transition safely and judiciously. Some companies, such as affactive.com, which has recently introduced its new binary options site, Brokerage Capital, have elected to add binary options to their already existing gaming sites as an appropriate addition to their clients’ portfolios.

Other gaming sites prefer to keep their binary options site completely separate.Winner.com chose to keep things discrete when it introduced its binary options site, winner-option.com. One has to look very carefully for a mention of binaries on its gaming site.

With gambling laws differing from regulations governing binary options, one would think that these two ventures need to be kept totally separated. And indeed, despite the seemingly available option of opening up a binary option account through a gaming site, the account is in fact opened under the gaming site’s subsidiary binary option company, which appears to be regulated by CySEC and the FCA under the company name of Safecap Investments Ltd which also operates several other trading entities

The crossing of lines between gambling and binary option sites seems to be a logical progression in today’s trading arena as both are speculative and involve making wagers of some sort. From a broker’s standpoint, the combination of the two spheres and the additional opportunities it offers his clients, directly impact on his financial bottom line. For the investor or the gambler whose psychological penchant towards chance and risk taking motivate him towards both venues, the enhanced probabilities for profit are both attractive and enticing.

FXPN Closes Down

FXPN, previously hailed as one of the fastest-growing affiliate networks for Forex and binary partners, is closing its operation as of January 15, 2014. The Israeli-based company was launched with great fanfare in September 2012 by the Leverate Group and began its network with ten premium Forex brands and more than 600 affiliates.

FXPN, or FX Partners Network, is a subsidiary of Leverate which allowed industry affiliates to choose and promote a variety of Forex and CFD brands. Leverate developed FXPN to cater to the unique needs of both partners and brokers in an affiliate marketing environment. It is interesting to note, however, that during the course of its short life, FXPN’s broker list didn’t expand significantly, and was mostly filled with unregulated brokers including NetoTrade, AstonForex and Fxlider.

DirectTrack Affiliate Software Technologies, FXPN’s main trading platform which was custom developed by the FXPN team for use in broker and partner reporting, notified the company several weeks ago that they will cease operation as of March 2014 and Leverate announced that it too will no longer continue its affiliation services.

FXPN’s back office login area will not be accessible as of Jan 15th but anyone doing business with a broker that was working with FXPN can continue their campaigns and generate commissions. In the meantime, Leverate will focus its efforts and resources on expanding its technology for Forex and binary options brokers.

The Binary Options Industry – Who to Watch in 2014

The year 2013 has ended with a bang for stock markets, with both the S&P 500 and the Dow Jones Industrial Average posting annual jumps not seen since the 1990s. While equity traders patient enough to sit out the roller coaster ride saw record gains on their investments, the flow of investors moving out of equity trading to safer ground continued throughout the year.

There were, in fact, many speculators looking to diversify and to take advantage of the upwards moving markets who looked to binary options as a way to do just that. Binary options trading is not a new fad by any means. In the past, binary options were considered a semi-official investment product, open only to banks, other institutional and high net-worth investors in the Over-the-Counter (OTC) markets. There was no regulation and they were offered as part of larger and more complex contracts.

This changed in 2008 when the US Securities and Exchange Commission (SEC) made it legal for binary options to be offered on major exchanges as a stand-alone, tradable financial instrument. By the middle of the year, the American Stock Exchange (AMEX) started offering binary options to the public for the first time and the CBOE followed suit soon after, albeit with only call options available for purchase.

Company Closures and Openings

Despite the volatility of binary options and the high risk factor involved in trading, binary options trading is easy and less stressful than most other investment vehicles and we continue to see more and more brokers and vendors jumping into the binary options markets. To stay one step ahead of the competition, binary options brokers have begun introducing more technologically advanced products to the industry such as simulated trading and charting tools for traders, items that have been traditionally absent within the binary options world.

2013 saw several major binary options brokers close their doors, while many new companies have hopped on the bandwagon. The biggest company to collapse was iOption, which employed about 60 employees and whose parent company had just been granted a CySEC license making it one of the few regulated binary brokers out there. Problems allegedly began a few weeks prior to their closing when some of iOption’s trading clients were unable to process withdrawals. 123binary and BNRY are two other binary options brokers that will not be continuing into 2014.

Despite the demise of a few brokers, there are still dozens of reputable binary options brokers in the industry and with such a wide selection it is difficult for an interested trader to know which broker to choose.

To help you along, we are offering a quick overview of some new binary options brokers that are worth keeping an eye on, and some older ones that we’ve been admiring for a while:

New Brokers:

PowerOption, powered by AvaTrade, has shown great promise and popularity among traders over the past year. PowerOption was founded in the Seychelles with the aim of bringing the smartest technology and highest integrity to the world of binary options trading. Their executive team has decades of combined experience in finance, trading and online security.

TopOption, powered by leading Forex broker, Markets.com, is headquartered in Cyprus and was one of the first regulated binary option brokers. It is currently one of the most reliable and secure brokers in the industry and is considered a key broker in the binary options market. TopOption is available in a wide variety of languages exposing the company’s expanded global vision.

Lbinary was introduced at the beginning of this year and has gained a lot of attention from online traders. The company’s success lies in the easy-to-use interface and their team of experts experienced in the binary options field. Lbinary offers the SpotOption trading platform which is used by leading online trading brokers.

TitanTrade also made its entrance into the binary options market this year. TitanTrade is a web-based trading platform and is perfect for traders looking for a comfortable trading platform. The company was created by industry veterans aiming to generate a more down to earth and diverse binary options trading experience. TitanTrade also offers the SpotOption trading platform and prides itself on having the best customer service.

Established brokers:

24Option is a relative veteran in the binary options market, having started operations in the second half of 2010. The company has been a top-rated broker at DailyForex.com for 2 years and shows no signs of weakening in the market. Customer service at 24Option is exemplary with a diverse, multi-lingual staff for support in all regions. 24Option is registered in the tax-free haven of the British Virgin Islands and accepts traders from all over the world except the U.S.

StockPair is another older broker that we’ve been watching, and the company seems to be improving with age. What began as an online platform for quick trading of stocks has grown into one of the most interesting and diverse and unique binary options platforms in the industry. Traders looking for a bit of a different trading experience will appreciate all that StockPair has to offer.