Binary Options - Friend or Foe to Forex Brokers?

With Shay Hamama, VP of Business Development at MarketsPulse

First Published: e-Forex Magazine 54 / FX Mythbusters / October, 2013

We are concerned about the way binary options are regulated. Are they legally treated as gaming instrument or financial instrument? Binary Options are a financial instrument, both the act and behaviour of a trade being made clearly classifies it as a subcategory. We progressively see financial regulators implementing regulations for providing binary options. Several regulators such as CySec in Cyprus, JFSA in Japan, the SEC and CTFC in the U.S. and more have regulations for retail binary brokers. In several other jurisdictions binary options falls under the regulations of options in general. We believe that with time more financial regulators in different jurisdictions will regulate and oversee binary options as a financial product. Having been founded in 2008, the MarketsPulse team has seen the industry grow and change. Since a majority of our clients are veteran brokers, abiding by regulations is essential, especially if you are looking to work in markets that are regulated such as Australia or Japan....continued

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