Choosing binary option brokers in south africa
The lack of legislation did not mean a lack of binary options brokers. Some of these were locally based and operated to official standards with a properly approved license by the South African government.
Unfortunately bad publicity has tarnished the image and reputation of many binary brokers, suggesting that they were illegal or scams. This led to many traders using foreign binary options brokers or even South African brokers based offshore. Thankfully the new regulations have now attracted new businesses and allowed existing ones to be properly registered; providing a genuine service to traders; no matter where you live.
You will note that two bodies were created to supervise all financial instruments within South Africa; including binary options brokers. These organizations have strict guidelines which they enforce; the result is an assurance for the general public that approved binary options brokers are safe to use and can even help you to generate additional funds. The FSB is very similar to most other government agencies. It was created to regulate all financial activities in South Africa and specifically binary options brokers.
In fact, this body has been created for only this purpose; it does not focus on any other matters. The consequence of this is that it can focus on an array of financial instruments without distraction and provide the right level of regulations; in fact the guidelines supplied by these organizations are as advanced as you can find elsewhere in the world.
Their role includes monitoring and supervising the stock markets, including the impressive Johannesburg Stock Exchange which provides a range of indicators stimulating and controlling the actions of many binary options traders. This is one of the reasons that it is closely monitored; to ensure no insider trading exists.
The FSB offers a wide range of features and covers the security of the capital markets, investment schemes and even insurance monitoring. In fact, although it supervises the binary trading markets, it does this by carefully and closely monitoring the work of the FAIS. This includes the registration of all binary options brokers, supervision of binary trading and ensuring all firms are complaint with the relevant laws. Alongside this it is responsible with raising the profile, ensuring all financial bodies conform and comply with the necessary standards to improve the global profile of the South African financial markets.
So, please always check the license on the broker website as well as on the license authority website by cross checking the license number as described above. If you are interested in trading with the most common underlying assets as the major currency pairs, common commodities like gold, silver, oil or major stocks and indicies, then this is not an important point.
This is since basically all brokers offer these assets. But, if you have a specific asset in mind that is not so common you have to make sure that the asset is offered for trading by the broker. Not all brokers offers the option of trading binary options with the ZAR. Which is why this is one of the deciding factors for the list above.
And why we have also enclosed this information for each of the binary brokers above. If you are unsure wether the broker offers a specific asset, check the broker website where this information is disclosed.
You can also contact customer support by email, phone or chat to find this out. The binary platform, meaning the binary option software used when trading, is an important part. You need a platform that enables you to make smart and strategic decisions. You also need a platform that provides you with a good overview of the asset you're trading with and the information connected with it. We have evaluated the platform of each of the binary brokers on this site and they are all proper, safe platforms with a good overview.
But in the end, this decision is a subjective one. So, it's not a bad idea to check the different platforms out for yourself before making a final decision. This easily done by visiting the broker website or simply by opening a free demo account. Customer support is important for a number of reasons.
Obviously it's of great importance should any kind of problem arise. But, more commonly, trading related questions will arise and then it's of course a great benefit to have a customer support that is easily reached and that provide both swift and helpful answers. Customer support is also a good way to determine the overall quality of the broker.
A good and helpful customer support means a broker that cares about their traders. And that is an important. Every serious broker offers a great deal of education on their site. Much of this educational material is available for free without even opening an account. And all of the educational material is available to those who do open a free demo account. To be well educated and carefully prepared is the first step towards successful binary options trading.
In the end the choce of binary broker is a subjective decision. But the factors above are key factors that applies to the process of deciding which broker to sign up and trade with.
And it is important that you find a broker that you are comfortable with and that you know provides safe trading. An important part of safe trading is that you will be asked by your broker to provide documents that confirms your identity and which country you live in.