CySEC Demands Clarity Over Name Changes of Forex and Binary Brokers

Best Binary Options Brokers 2020:
  • Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
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  • Binomo

    Good Broker For Experienced Traders!

Breaking: CySEC Regulation Drastically Changes Binary Options Platforms

Brokers will need to “operate in a way that is fair to clients”.

The Cyprus Securities and Exchange Commission (CySEC) has just released a new circular that is drastically changing the business operation model of regulated binary options companies. The document released by the regulator obliges substantial changes to the software that is currently being provided by most technology providers in this industry.

According to the new requirements the new products will have to comply with a set of regulations. Clients of binary options brokers will have to receive adequate information about the contracts that they have been trading to ensure transparency, while brokers will need to “operate in a way that is fair to clients”. Binary options brokers and their technology providers have until the middle of July to comply with the changes.

Binary options with a duration of 30 seconds are not considered to fall under the new regulations.

Transparency Becomes a Priority

The changes come after numerous complaints from clients in the European Union to their local regulators that have triggered the European Securities Markets Authority (ESMA) to pressure the Cypriot watchdog to rein in corrupt practices in the industry that are putting traders at a disadvantage.

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Looking at the specific requirements for trading platforms, CySEC starts with strict requirements about the underlying assets that are traded by the clients. For example if a client is trading crude oil, the relevant futures contract from which the prices are displayed on the platform has to be displayed (i.e. WTI Crude Oil May 2020 NYMEX).

Bid and Ask Prices and Expiration Rates Changes

The second requirement for binary options trading platforms concerns the price stream that they are looking at. In contrast to the current single price feed, brokers will have to display continuous feeds with bid and ask quotes throughout the lifetime of the option. The field with the bid/ask price feed must be clearly visible to the client right next to the exercise price of the binary option.

Binary options brokers will also have disclose their methodology when calculating the strike price of the option and publicize the providers of the feeds they are using. At the expiration of the binary option a pop up message with the strike price, the bid, ask and the last price (if applicable) should be on display for the client. Any rounding will also have to be disclosed.

Canceling a Binary Option Purchase

After an initial consideration of introducing a cancellation option on every purchase for up to five seconds, the CySEC has shortened this period to three seconds. Clients that believe that they got an unfair execution price will have the ability to cancel their purchase within three seconds.

If a brokerage is offering a buyout of the option of the client, it must disclose the methodology used when determining the conditions of the buyout.

Our iGB Article: Forex & Binary Options Brokers & Customer Acquisition (Part 1)

Every year, the Financial Partners Expo forms part of the larger iGaming Super Show in Amsterdam. For the conference in June we contributed a marketing-themed article to industry publication iGaming Business‘ (iGB) Super Show issue. It featured insights from our forex clients GAIN Capital and ETX Capital as well as binary brand MarketsWorld.

You can check out the print magazine article on the iGB website, where it’s been republished here. However, you can also read part 1 of the piece below (then read part 2 here).

Best Binary Options Brokers 2020:
  • Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo

    Good Broker For Experienced Traders!

In 2020, forex, CFD trading and financial spread-betting in the UK experienced their strongest growth in five years – growing 14% year-over-year, according to Investment Trends. Nonetheless, forex brokers and their counterparts in the newer binary options sector face high levels of competition.

With regulatory change also on the horizon, brokers are increasingly looking to streamline their customer acquisition by diversifying their marketing mixes, including placing more emphasis on the affiliate channel.

Evolution & Challenges

The retail forex sector dates back over two decades. Amidst rising internet penetration, the mid-1990s saw the emergence of online trading platforms providing margin brokerage accounts to private investors. These brokers included Oanda, founded in 1995, GAIN Capital and FXCM, both founded in 1999, and ETX Capital, whose retail arm was unveiled in 2002.

The industry’s growth was supported by technological developments such as the 2005 launch of the now-ubiquitous MetaTrader4 trading platform. Meanwhile, the market volatility accompanying the 2007-2008 financial crisis and subsequent Eurozone debt crisis also drove the industry’s expansion, even as the period’s economic slump acted as a brake on trader deposits.

During the global rebound that followed, an entry barrier still remained for prospective customers. Succeeding at forex trading requires a sophisticated knowledge of economic indicators and technical analysis of currency pairs. Unsurprisingly, simpler forms of financial trading emerged to bridge this gap.

These included binary options, which involves traders predicting whether a particular asset – a currency pair, a commodity or stock index – will appreciate or depreciate over a set time. As Jeff Saunders, Head of Affiliates at binary broker MarketsWorld, acknowledges, “Forex is more difficult to trade than binary options, where you just make your bet and wait for the expiry.”

“We launched in 2020 and, despite our being only six years old, we are one of the oldest platforms in the industry – at the time there were only a handful of providers,” says Saunders. Today there are over 500 binary brokers, according to FinanceFeeds’ research. The forex space is even more competitive, with over 1,200 brokers.

Both sectors face the additional challenge of regulation. “If you’re a very regulated forex broker, it makes it harder to compete with offshore brokerages who use very aggressive sales techniques,” says Vincenzo Roselli, Head of Affiliate Marketing at ETX Capital. The forex broker is regulated by the UK’s Financial Conduct Authority (FCA), which he describes as “a very strict regulator” compared to the Cyprus Securities and Exchange Commission (CySEC) overseeing some brokers.

Regulation is also tightening for the binary sector in the aftermath of some brokers’ exploitative tactics. “CySEC, no doubt under pressure from other larger regulators, has now started to act and to put a leash on CySEC-regulated brokers,” says Saunders.

Some binary brokers choose regulation by a gambling regulator as an alternative to CySEC. Considering its binary product a form of fixed-odds betting, MarketsWorld is regulated by the Isle of Man Gambling Supervision Commission.

The forex sector faces its own upcoming regulatory challenges. “The regulation in the forex business is very uncertain and likely to change in the near future and get a lot stricter,” says Roselli. He points to the FCA’s planned changes to brokers’ leverage and customer margin and the entry into force of phase two of the Markets in Financial Instruments Directive (MiFID) for EU brokers in January 2020.

You can read the second and final part of our iGB article on forex and binary brands’ evolving marketing strategies here. Once you’ve read both parts, don’t forget to give your feedback and comments in the section below.

Top Rated Binary Brokers – 2020

Although they were only introduced in 2009, binary options brokers have taken Forex world by force. But with the fleet of binary options trading brokers expanding regularly, traders may need help determining which ones are the best. We’ve tested dozens of brokers and have compiled our findings into these comprehensive binary options reviews.

Our binary options reviews are based upon our in-house testing of each broker. We recorded our experiences with the trading platform, customer service and ease of use each broker, and we listed the minimum deposit, languages available and other critical information to help you make an informed decision. Find the right binary options broker now!

US-based traders can take advantage of our top US Binary Options brokers list.

Broker’s Name Minimum Deposit Deposit Bonus Maximum Gain Minimum Position Regulation More Info
$250 50% 85% $20 CySEC Visit site $5 30% None None None Visit site $200 None 81-85% $5 CySEC Visit site
4 $250 100% 85% None None Visit site
5 $1000 Up to 100% 86% $250 None

Binary Options Brokers Reviews

For those looking to trade something familiar and exciting from the comfort of their home, Stockpair may be the perfect broker. Stockpair was founded in 2020 and is regulated by IFSC out of Cyprus. Much like Forex trading which pits one currency against another, Stockpair allows traders to trade binary options or stock pairs against each other on straightforward, technologically advanced binary and stock option platforms. There are some generous bonuses at Stockpair that are worth checking out.

Ayrex is a binary option broker established in 2020 and operated by Advanced Binary Technologies Ltd. Its main office is located in St. Kitts and Nevis. Ayrex believes that simplicity is the way to go and they have built their website to make it as easy to navigate as possible. This simplicity is extended to the trading platform which has a user-friendly interface with simple Call and Put buttons, ultra-fast trade execution, flexible trading, and a wide variety of trading tools.

10Trade is a binary options brokerage owned by Holiway Investments Limited. Holiway was one of the first companies to offer its clients a fully licensed and registered binary options program with regulation by the Cyprus Securities and Exchange Commission (CySEC). Its customer support is responsive 24/7 via Chat, email or toll free phone numbers and representative are around to provide personal guidance for every trader. Both support and the platform are available in 11 languages.

Option500 is a binary option broker domiciled in London, U.K. offering traders the opportunity to trade currencies, stocks, commodities, indices and pairs. Option500 has offices in several locations and offers customer service 24/7. It opened its doors in 2020 and has already received several awards for outstanding service. The layout of Option500 is clean, informative and easy to understand. The tools, resources, charts and asset listings are of good quality and high standard and are conveniently located on the site. There is quite a lot of educational material with a wide variety of videos and a Trading Academy for holders of the Pro account.

Boss Capital is a relative newcomer to the binary options market but it has already become a leader in a very short time. Domiciled in the United Kingdom, Boss Capital maintains satellite offices in close to thirty different countries across the globe. They offer over 200 assets for trading including binary options on commodity futures such as Platinum, Gold, Silver, Corn, Coffee and sugar and is one of the few binary options brokers that offer boundary options which are great for trading economic releases.

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Risk Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations of DailyForex or its employees. Currency trading on margin involves high risk, and is not suitable for all investors. As a leveraged product losses are able to exceed initial deposits and capital is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite. We work hard to offer you valuable information about all of the brokers that we review. In order to provide you with this free service we receive advertising fees from brokers, including some of those listed within our rankings and on this page. While we do our utmost to ensure that all our data is up-to-date, we encourage you to verify our information with the broker directly.

5-Minute Strategies for Binary Options

The trading system for binary options with a 5-minute period of expiration is the «golden mean» of those parameters that allow you to minimize the risks of trading and work with excellent profitability. The most important question is what method should be used for stable and highly profitable trading?

Actually, there are many different strategies to trade binary options on the 5-minute time limit expiration. For example, the main focus of the profitability of the «High Range» system are trading signals that, in this strategy, are obtained from technical indicators. They make this process profitable.

Another, important factor affecting the profitability of options trading is a binary options broker, which guarantees your transaction without slipping. What’s wrong with slippage? Slippage is fraught with the loss of precious points, the existence of which is very important at the time of expiry of the transaction. You think the loss of 3-5 points is not significant? Trust me, it’s a lot! Even a few points can you take up to 10% of the trading results! For example, if using the strategies of trading binary options for 5 minutes, you have 70% profit, minus the 10% slippage; you get only 60%, which automatically makes your trade unprofitable, because the growth of the deposit should be at least 65% for the strategy’s profitability. That is why it is important to choose a broker that ensures no slippage in prices.

Upon logging onto the broker’s platform, your quotes chart will look like this. Now you need to set the chart up, so you chose the configuration of its timeframe for 1 minute:

Then you need to add all the necessary indicators to the chart. Therefore, you choose from a Volatility Stop catalog, a Williams% R indicator:

That’s all you need for a simple strategy for binary options that have been prepared for use. Now, the 5-minute binary options strategy will use the trading signals to bring you profit.

Receiving signals in «High Range» 5-minute strategy

For convenient and efficient trading, place next to each other the Binomo platform windows and a chart with technical indicators. That way you can immediately make a deal, having received a signal from the indicators. After this, just follow the result of the indicators, which should show you the best time for the opening the transaction.

The signal for UP deal:

1. The emergence of a green dot will mark the beginning of the trend’s growth.
2. Crossing the upper extreme level by the Williams% R indicator will warn of an increasing growth trend.
3. The appearance of these signals on the chart indicates the right time to make an UP deal, which must be opened from the broker’s terminal:

A DOWN signal for the transaction will be:

1. The appearance of a red point that will mark the beginning of the trend’s fall.
2. Crossing the lower extreme levels by the Williams% R indicator will warn of the increase of incidence trends.
3. The appearance of these signals on the chart indicates the right time to make a DOWN deal, which should be opened with the broker’s terminal:

What is level of profitability of the «High Range» system? We mentioned earlier that the rate of return of this strategy is able to reach 72%. But you must use a reliable broker and a 5-minute strategy. This is the right step for the significant growth of your deposit!

Expiry dates

Trading binary options using a 5-minute strategy is to set for each transaction a 5-minute time expiration. Thus, you will ensure maximum profitability from your transactions!

Another strategy for 5 minutes

Binary options are often very unpredictable, but there is a trading strategy that you can use to outsmart the market and wrap its fluctuations in profit! The name of this strategy is «Crafty Serpent», and it can easily increase your deposit by about 5% per day.

Receiving signals

What can binary options offer? The strategy from the professionals, called «Crafty Serpent» will give you 7 profitable transactions out of 10. That is an excellent result, and it is now available to any trader. To trade, place 2 windows near each other (a window with a broker platform and a window with a live chart) and follow the dynamics of the installed display.

The signal for an UP deal would be:

1. Green lines of the «Crafty Serpent» indicator will cross the zero level up.
2. Therefore, if you are looking at the chart to see a situation, immediately press the UP key, because most likely quotes will continue to move in this direction:

The signal for a DOWN deal would be:

1. Green lines of the «Crafty Serpent» will cross the zero level down.
2. Immediately press DOWN, because most likely the quotes will continue moving in this direction:

Expiry dates for trading «Sinister Snake» binary options strategy

Creating a template on a live chart for a quotation chart, we used a 1-minute timeframe. This means that one quotation candle is equal to one minute. Thus, on the graph, you can see that when the lines of the «Crafty Serpent» indicator intersect, the following quotation of 5 candles (which is 5 minutes) continues moving down. This is a standard script that is repeated in 90% of cases when you get a trading signal. That’s why we recommend the broker platform with an expiry period set to 5 minutes. Using this parameter in the «Crafty Serpent» trading binary options strategy will be as efficient as possible.

Best Binary Options Brokers 2020:
  • Binarium

    The Best Binary Options Broker 2020!
    Perfect For Beginners and Middle-Leveled Traders!
    Free Demo Account!
    Free Trading Education!
    Get Your Sign-Up Bonus Now!

  • Binomo

    Good Broker For Experienced Traders!

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