Binary Trading Industry In Major Rebranding Effort

mfsaOver the past year, the binary options trading industry has been experiencing a major shift in both in terms of regulations as well as product offerings.

For example, we have seen the tightening of regulatory supervision by the Cyprus Securities Exchange Commission (CYSEC) on errant brokers. This came about not long after the U.S regulatory authorities like the CFTC and SEC instituted legal actions against the leading binary broker Banc De Banc for illegally soliciting U.S based clients. Under pressure for all sides, the CYSEC has since started a campaign of weeding out non compliance Cypriot investment firms (CIFs) and suspending or revoking their CIF licenses.

Apart for the increased oversight by the regulatory authorities in the binary trading industry, we have also started to see an increase in the level of sophistication of the products offered. As recent as a year ago, binary traders couldn’t even imagine that they could be making “ladder” style trades with binaries. Today, several leading binary brokers are already offering their traders the opportunity to trade with this sophisticated trading strategy popularized by the forex industry.

Binary Options and Controversy

Since their introduction to the retail trading segment of the in 2008, binary options have constantly been dogged by controversies. Much of the controversy centered on the issue as to whether binaries can be considered legitimate financial investments or mere gambling clothed in the respectability of financial trading. While there are valid arguments on both sides of the divide, it is safe to say much of this labelling makes no difference to an interested trader so long as he is making money.

Binary options brokers understanding that the comprehensible nature and simplicity of trading binaries is what will draw them a wider audience of clients than other traditional form of investing, have gone to considerable length to rebrand the industry in a better light. In the last couple of years, we have seen the introduction of pair trading, Bitcoin trading as well as short term binaries such as 60 second options. All these moves were designed to cater to a target market that is as varied as a kaleidoscope of colors.

Regulatory Environment Makes Strides

It is comforting to know that the regulatory side of the industry is also making serious strides in response so traders are now better protected from unscrupulous brokers. The latest development on the regulatory side is the recent shift in jurisdiction from Malta Lotteries and Gaming Authority (LGA) to the Malta Financial Services Authority (MFSA) with regards to binaries. The UK regulatory authorities are also mulling a similar move in the way they view binaries. While there is still a long way to go in terms of development, we can safely say that the binary options industry is maturing in the right direction.

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