The binary options market in Australia

australia binary optionsLocated in the Asian Pacific region, Australia is seen by many investors as a major financial center in this part of the world. Like many other jurisdictions around the world, binary options trading here have been gaining popularity steadily of late. The trend is expected to continue in the foreseeable future as the binary options industry becomes more regulated and established. Unlike binary options brokers in Cyprus which can “passport” their CYSEC licenses into other European Union jurisdictions under the MiFid regulations, Australia has its own regulatory framework under the Australian Securities and Investments Commission (ASIC) for governing the Australian financial markets.

Legality of Binary Options in Australia

One of the key issues which regulatory authorities face when it comes to regulating binary options trading is whether to regard binaries as a form of investment or a gaming bet. The implication for drawing a distinction between and gaming bets has largely to do with taxation. Traditionally in jurisdictions influenced by the British legal system, gains made from investments are subjected to capital gains tax whereas winnings from gambling activities are not taxed. The rationale behind this is that if winnings from gaming activities are being taxed, then the tax authorities have to allow for deductions in the case of gaming losses.

Binaries as Investments in Australia

In Australia, binaries are not regarded as gaming bets by the regulatory authorities. Hence, binary traders in Australia are liable for capital gains tax on the profits that they earned. In fact, the trading of binaries is regarded by the Australian government as a new market innovation to the traditional stock market offerings. Once it has been decided by the Australian Securities and Investments Commission (ASIC) that fixed return binaries are considered legitimate investments, they began to regulate the trading of binary options in the Australian market in September 2011. With regulations in place, several guidelines were imposed on binary brokers who want to solicit for clients in Australia. The regulations covered areas such as the terms of the broker’s services as well as the quality of the services offered.

In addition, the regulations imposed on binary brokers in Australia help to ensure accountability. This mean AISC can legally go after those brokers who are out to scam their clients. Overall, the level of confidence which investors have for the Australian binary options market have improved tremendously ever since AISC started to play a more active role weeding out the unscrupulous binary brokers from the trading scene.

Top Binary Options Brokers in Australia

The Australian binary options market is regulated by the Australian Securities and Investments Commission (ASIC). While Australian based binary traders have the choice to trade binaries through an offshore binary broker, it is always more prudent to trade with a broker that is registered and regulated by ASIC. This way, traders can be confident that they are protected and there is a chance of restitution should their broker acted inappropriately. To make the task of finding a regulated binary broker easier, we have compiled the following list of brokers which are registered with ASIC.

  • IG Markets

IG Markets is a leading CFDs and forex broker which part of the IG Group. Listed on the London Stock Exchange, the parent company IG Group is also part of the FTSE 250 Index. Established for more than 35 years, the group ventured into the binary options industry in 2011 by offering binary trading services through its subsidiary IG Markets. Apart from being a registered financial services provider with ASIC, Australian binary traders can rest assured that they are dealing with an award winning broker that is highly regarded by traders from all over world.

  • Market Punter

An Australian corporate entity (CAN 137 016 490), Australian binary traders can be confident that they have the protection of ASIC when they are trading binaries through Market Punter. Acting as a Corporate Authorized Representative (CAR) for CDM Pacific Pty Ltd, Market Punter is regulated with ASIC through the Australian Financial Services License (AFSL 223682). The main reason for this because CDM Pacific Pty Ltd is the issuer of the binary options which Market Punter is dealing in.

  • PowerOption

Although powerOption is not an Australian corporate entity, we feel confident in recommending this binary broker because its parent company is the one the world’s leading online forex broker AvaTrade which regulated by ASIC. In addition PowerOption has been endorsed by DailyForex as one of the “Safest Broker or 2013”. PowerOption uses the Market Pulse trading platform that is more sophisticated than other generic white label trading platforms which most brokers uses. The platform is well liked by traders because of its large graphs and fast loading time.

  • TradeSmarter

A pioneer in the binary trading industry, TradeSmarter’s parent company is licensed with ASIC. This broker is popular among traders largely due to its advanced trading platform as well as being transparent company. With a low minimum deposit requirement and low minimum trade, TradeSmarter is a great place for beginners to start trading binary options.

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