Binary option is a fast-growing venture all around the world. It is an exotic trade option where you choose whether the value of an asset will go up or down over a given timeframe.
Think of it as up & down betting.
You can still trade shares, forex and crypto legally in Australia. Check out the best online trading platforms.
Binary Options Alternatives
There are no regulated brokers that still offer binary options trading, however, there are many legal alternatives.
1. Forex Trading
This currency trade is perhaps the best flexible alternative to Binary Options. Although it was initially formed to help companies transact currency frequently based on a value, it has been adopted as an investment.
There a number of great secure platforms that deal with Forex. While finding the best platform, it is recommended going with the ones licensed by ASIC.
Forex has been around for a while and as a result, earned a credible reputation. Unlike binary options, there is no limit to the amount of money you can invest. Also, there’s no time window limitation.
2. CFD trading
A contract for difference (CFD) is a type of mutual financial understanding in which trade takes place without actual shares changing ownership. The stock doesn’t determine the trade. Instead, the trade is based on the price movement of the share.
In Australia, many online trading platforms provide CFD trading. With over 200 global markets, Easy Markets allow you to trade CFDs on commodities, shares, indices, and crypto.
3. Cryptocurrency
Cryptocurrency is a budding market and worth a shot to an investor. Since it is new to the market, it isn’t influenced by most of the factors that affect traditional trade products such as indices.
There are different cryptocurrencies in the market. They have different values, popularity, and volatile rates. You can trade cryptocurrency by speculating on the price moment with CFD trading. All you have to do is find a trustworthy broker that offers what you need.
Using a CFD trading account is better than having to set up a wallet account. With CFD trading, you don’t have ownership of the assets but you still generate profits on price movements.
Just like with Binary Options, to trade in the above options you need a broker. You can try CFD brokers , Forex brokers or Bitcoin brokers.
Just make sure the broker you choose is licensed by ASIC to operate in Australia.
Best Binary Options Brokers in Australia
HighLow
Highlow was the only binary options broker that we recommended in the past. Unfortunately, they stopped accepting new traders.
This Australia based brokerage firm provided top-notch services when it comes to Binary options. The firm was regulated by ASIC. It is a highly transparent and reliable broker. You can find out more in this HighLow review
| Name | Min. Deposit | Features | |
|---|---|---|---|
 |
$50 | + $50 CASHBACK |
Here is a list with all brokers:
- Highlow – Best Binary Options Broker (Not accepting any new traders)
- Finrally – Not recommended (Not regulated in AU)
- PocketOption – Not recommended (Not regulated in AU)
- Nadex – Not available in Australia (Not regulated in AU)
Is Binary Options Trading Legal in Australia?
This is probably the most basked question by Australian traders. Well here is an answer for you, NO.
The info below is outdated and should be ignored.
ASIC recently started regulating binary operators in Australia. Binary operators must now get licensed by ASIC. To trade in Binaries, all you have to do is open an account with an ASIC licensed broker.
An excellent broker not only gives you various trading assets but also tools to boost your returns.
Getting a trusted and reliable broker might be challenging. Worry not, we have you covered. Here are those recommended for you;
How To Get Started With Binary Options?
The best part of Binary Options trading is that it’s easy to understand. The price of an asset is either going up or down. Basically you just have to predict which direction it will go.
After choosing your broker, register an account and log in to it. If it is your first time trading binary options, follow this:
- Make a deposit into your account to start trading. For most platforms the minimum deposit is $100
- Select the asset you want to trade and check the expiry time of the selected asset
- Make a prediction on the price movement of the asset. Call represents a price rise while put represent a price fall
- After making your choice, the price and expected payout will be displayed on your screen
- Choose the amount of money you wish to invest
- After the expiry time has passed, you will find out if you predicted right or otherwise
If your prediction was right, you will receive the expected payout. If your prediction was wrong, you lose the money you invested.
Most Australian brokers, however, refund you 15% of the amount you invested.
If you want a piece of Binary Options trading, choose your broker and get started. It is that easy.
Binary Options in Australia
Binary Options are divided into:
- Cash-or-nothing
- Asset-or-nothing
The difference between the two is that cash-or-nothing pays a fixed sum while asset-or-nothing pays a value.
The Australian finance market upholds high standards of oversight through the Australian Securities and Investment Commission. ASIC regulates financial & insurance institutions in Australia. As such binary brokers have to be regulated and licensed in order to operate in Australia.
Licensing these brokers has an upside. It paints a picture of reliability and trustworthiness on these brokerage firms. In turn, investors and traders are more willing & likely to invest with them.
Being a very risky venture, a little credibility from the broker goes a long way in attracting investors. No time like the present, there is to get into binary options trading in Australia. This is because ASIC now licenses brokers. Goodbye scammers.
If you are an investor looking to plough money into binary options well, you just found the right train.
Start Trading Binary Options
Not all countries allow binary options trading. Therefore, before getting into binary options you have to make sure you can access it in your location. Fortunately, in Australia binary options is a legal venture.
Once familiar with Binary Options, you will need to find a trusted broker. Through the broker, you will have access to markets. You can make great profits and bonuses through binary options trading.
If you are an Australian investor you have no worries regarding legality when you use a licensed brokerage firm
Binary Options Trading Robot
As a trader in Binary Options, chances are you have missed some of the trades you wanted to capitalize on. Maybe you were asleep or a little bit preoccupied. To help avoid that, you can choose to make automated trades with a trading robot.
Once set, the trading robot will make trades based on your settings. It is an automated way of trading that saves you the need to stay up all night waiting for a particular trade. A recommended trading robot is BinBot Pro.
Binary Options Trading for Australians
Binary options trading has many merits over most financial investments. What makes it so?
- It is cheaper to trade Binary options compared to other trades.
- Binary Options trading is simple to learn and understand. With the right broker, you will generate profits much easily than other forms of trade.
- With Binary options, you are aware of the risks before placing a trade. Also, your payout is known beforehand.
Before trading, you first need to find a broker. As an investor, you want the best broker in town. Most binary operators are based outside Australia. There are domestic brokers but they don’t afford you as many perks as global brokers.
Some of these benefits are mobile trading platforms, signing bonuses, and demo platforms. Demos and signing bonuses, for instance, could help you test the broker.
To find a reliable broker you have to keep in mind some factors such as:
- The broker’s preferred payment & funding methods
- Quality of services/products offered by the broker
- User-friendliness of their platforms, web & mobile
- Is the broker licensed and regulated by ASIC?
- The safety of your funds
- Customer support effectiveness and reputation of the broker
Australia, being a developed country with an advanced economy, has a defined financial payment system. Most fund transfer methods are available in Australia. That means Australian traders can deposit or withdraw funds into their trading account with no hassle.
Bank wire transfers are however not suitable, this is because ASIC doesn’t allow offshore brokers in Australia.
Taxation in Australia varies depending on your region. It is therefore smart to keep records of your trades should you be required to pay taxes. Also, be apprised on any of the additional costs you may incur while trading.
Risk Management and Safety in Binary Options Trading
Binary options trading, while potentially profitable, involves significant risk. Managing risk effectively is essential to protect your investment and minimize losses. Since the market can be unpredictable, consider setting a maximum investment limit per trade and using stop-loss strategies if supported by your broker. Always be mindful of market conditions, and avoid trading based on emotions or market hype.
Additionally, safety in trading is paramount. Choosing an ASIC-regulated broker ensures that the broker operates under strict Australian financial standards, providing you with a safer trading environment. Always verify the credentials of any broker to avoid scams and ensure that your funds are secure.
