Yes, binary options trading is legal in Egypt.
The Financial Regulatory Authority (FRA) of Egypt takes control of all the important financial activities across the country. They take control of all the non-banking financial markets and regulate them for better optimization. They protect the rights of all stakeholders within the country and propose rules to ensure the transparency and efficiency of these markets.
The authorities in Egypt have not imposed regulations that restrict binary options trading. Although the country’s financial management authorities have imposed several rules on controlling its investment and trading approaches, they haven’t proposed any ban or strict control on binary options trading in Egypt.
Let’s find out how to trade binary options in Egypt in the step-by-step guide below.
Key facts about binary trading in Egypt
- Binary Trading is entirely legal in Egypt, and no special regulations exist.
- Traders can start to trade Binary Options with a low minimum deposit of $10
- Different brokers with a high return, like Pocket Option or Quotex are available.
- Binary brokers in Egypt support local payment methods.
FRA intends to license various entities for operating with non-banking financial activities. Moreover, it also inspects the brokers and entities that offer services to Egyptian citizens for trading with non-banking financial activities. So, you can conclude that binary options trading in Egypt is legal.
A step-by-step guide to trade binary options in Egypt
A Step-by-Step Guide to Trading Binary Options in Egypt
Gaining proficiency in trading is essential for those just beginning to trade binary options in Egypt. Profitability in the Egyptian market is possible, primarily with the appropriate expertise and a tailored approach. We provide a comprehensive step-by-step guide to empower novice traders in Egypt.
1. Pick an available binary options broker in Egypt
Traders must first verify the broker’s regulatory status. Binary brokers are usually regulated by well-known regulatory organisations, including ASIC, CySEC, and the Financial Services Authority (FSA), which guarantee the safety of traders’ funds.
It is also important to evaluate the broker’s trading platform. The platform’s features should be user-friendly and have the tools you need to carry out your analysis and work well with your trading strategy.
Engaging with a licensed broker, not an unlicensed broker, is crucial to ensure your safety. A licensed broker will offer you a fair price unaffected by market manipulation, ensuring your capital is not in danger. Binary options traders based in Egypt can use any of the following brokers:
100+ Markets
- Min. deposit $10
- $10,000 Demo
- Fast Execution
- High Profit up to 95%
- Fast Withdrawals
- Free Signals
100+ Markets
- Welcomes International Clients
- Offers High Payouts: 90% – 97%+
- Professional-grade Platform
- Swift Deposit Process
- Enables Social Trading
- Provides Free Bonus Incentives
300+ Markets
- $10 Minimum Deposit
- Free Demo Account
- High Return Up To 100% (in case of a correct prediction)
- The Platform Is Easy To Use
- 24/7 Support
100+ Markets
- Min. deposit $10
- $10,000 Demo
- Fast Execution
- High Profit up to 95%
- Fast Withdrawals
- Free Signals
from $10
(Risk warning: Trading is risky)
100+ Markets
- Welcomes International Clients
- Offers High Payouts: 90% – 97%+
- Professional-grade Platform
- Swift Deposit Process
- Enables Social Trading
- Provides Free Bonus Incentives
from $ 5
(Risk warning: Trading is risky)
300+ Markets
- $10 Minimum Deposit
- Free Demo Account
- High Return Up To 100% (in case of a correct prediction)
- The Platform Is Easy To Use
- 24/7 Support
from $10
(Risk warning: Trading is risky)
Let’s find out what the pros and cons of each broker are.
IQ Option
IQ Option is a legal trading platform in Egypt. A popular brokerage worldwide with over 8 million registered users, they are award-winning software recognised by industry experts. IQ Option has a clean and intuitive interface that meets the needs of every trader. Their platform offers more than 300 + assets, including those for forex, cryptocurrencies, and commodities.
With a team of professionals offering 24/7 support, IQ Option is a favourite for beginners and experienced traders. They also provide traders with various payment systems, allowing convenient withdrawals (1-3 days).
Features
- Instruments: CFDs, Forex, Indices, Metals
- Minimum Deposit: $10
- Minimum Trade: $1
- Payout: Up to 100%
- Expiry Times: 30 seconds to 1 month
- Mobile Apps: Supported (iOS and Android)
It has advanced tools like Moving Averages, Stochastics, MACD (Moving Average Convergence Divergence), CCI Indicator, and Bollinger Band.
(Risk warning: You capital can be at risk)
Pocket Option
Pocket Option, operated by Infinite Trade LLC, is a legal binary options broker based in Costa Rica. By the end of 2017, they had over 100,000 active users and are already available in more than 95 countries and regions. In 2019, Pocket Option already had more than 10 million registered users. Today, they have multiple types of trading available, as well as features such as affiliate programs, market and achievement systems, and social trading on the platform.
Features
- Regulation: By MISA
- Minimum Deposit: $5
- Minimum Per Trade: $1
- Demo Account: Available
- Mobile Trading: Supported
- Instruments: Stocks, Crypto and Binary Options
(Risk warning: You capital can be at risk)
Olymp Trade
Olymp Trade is a legal and reputed binary options broker with a presence in 139 countries. However, its platform is not available for citizens of the EU (all countries), Australia, USA, Canada, Japan, Israel, and the UK. It was established in 2014 and is headquartered in St. Vincent and the Grenadines. It has 60+ million users across the globe. It is registered and certified by the International Financial Commission (IFC).
Olymp Trade is a certified “A” grade broker, and in 2018, Le Fonti awarded it the “Best Trading Platform” award. This binary options broker has everything sorted out for beginners and experts alike.
A demo trading account is available for beginners, and you can trade with virtual cash to better understand the market. Olymp Trade is also part of an international organization that detects any fraudulent activities, and the trader gets a $20,000 compensation in real-world money.
Fixed Time Trades is also one of the best trading options on this platform.
The platform offers trading with 70+ assets, including Indices, Cryptocurrency, Commodities, and Stocks. You must pay a small minimum deposit fee to start trading on your live account, and you can even start trading with a minimum of $1.
The platform has 25,000+ active traders who trade daily. The turnover of Olymp Trade is estimated to be $175 Million. It has a host of indicators that will help you to choose an asset for trading.
(Risk warning: You capital can be at risk)
2. Sign up for a trading account
Brokers often require information from traders before registering them as traders on their platform. This information includes their basic personal details, tax information and salary range.
They could also be asked about their attitude toward accepting financial risks and how long they anticipate holding the investments.
This information is not required for verification and is used by the broker to create a better risk profile to reach your goals. If circumstances change and you wish to access riskier asset classes, you can always return to the site’s profile section and adjust your answers.
(Risk warning: You capital can be at risk)
3. Use a demo or live account
Trading can be emotionally challenging, especially for beginners who could put their capital into something they aren’t familiar with and are trying their hand at binary options trading for the first time. As emotions can influence decision-making, a demo account would allow traders to build emotional discipline by letting them experience wins and losses without losing money. This can help to better prepare them for when they trade with real money in the future.
4. Pick an asset to trade
The market often has multiple assets to choose from, and trading just a few assets simplifies the trading processes and lets traders focus more of their time and efforts on analyzing a handful of assets rather than numerous assets. Trading fewer assets also means that beginners can allocate their capital more effectively and have a better picture of the effectiveness of their trading strategies.
5. Make an analysis
Market analysis helps traders find trading opportunities by recognizing trade patterns, trends and potential signals that tell them when to enter and exit a trade. This lets them enter positions that align with their trading strategy. By analyzing the market before placing trades, traders can assess the level of risk tied to every trade they place. Usually, traders use technical indicators that are available on their broker’s platform.
- Moving Averages: Identify trends by observing the direction of the average. Rising averages suggest an uptrend; falling ones, a downtrend.
- RSI (Relative Strength Index): Gauge momentum by checking if the RSI is above 70 (overbought) or below 30 (oversold).
- Bollinger Bands: Assess volatility by the width of the bands. Wider bands indicate high volatility and narrower bands indicate low volatility.
- Stochastic Oscillator: Determine momentum shifts. Values above 80 are overbought, and below 20 are oversold.
For beginners new to binary options trading, look up a simple strategy you understand and would like to apply to your chosen asset. Feel free to refine these strategies as long as they work for you. After all, every trader has a different style.
Experienced traders can employ the strategy you used for your analysis, or you can go through our list of updated strategies.
6. Place the trade
Placing a binary options trade involves a few key steps, beginning with selecting the desired asset, such as commodities, stocks, currencies, or indices. The trader then chooses an expiry time, which can range from minutes to several days, depending on their strategy and market analysis. The next decision is between a “Call” option, predicting an increase in the asset’s price, or a “Put” option, anticipating a decrease by the expiry time.
After these selections, the trader specifies the investment amount, which should be carefully considered based on risk tolerance and capital management principles. Finally, before executing the trade, it’s essential to review all the details, ensuring that the asset, expiry time, position, and investment amount are correct. Upon confirmation, the trade is placed, and the trader awaits the expiry to see the outcome, which will depend on the accuracy of their market prediction.
7. Wait for the result
At the end of a trade, traders would receive a payout if their trade is successful or lose their initial investment if it is unsuccessful. However, trading doesn’t end here. Traders should still continue to regularly analyze the market to track their performance and take measures to reduce risk in their trades by constantly tweaking their strategies.
How do you make deposits and withdrawals in Egypt?
How do I deposit?
Various deposit options are available depending on the broker. After logging into your account, select the deposit page. You may pick the most convenient way to add money to your account here.
To deposit funds, traders can follow these steps:
- To deposit, visit the broker’s website or open the application.
- Login to your trading account.
- Click on the ‘deposit funds’ or ‘add funds’ option the broker offers.
- Enter the deposit amount.
- Choose a payment method.
- Authenticate the payment.
After traders validate their payment, the broker authenticates it and funds your trading account with the entered amount. You can use this amount to trade binary options and earn profits.
How do I withdraw?
Brokers may only allow you to withdraw funds back into the payment method you initially funded your account. You may apply for a withdrawal on the withdrawal page. Depending on the broker, the withdrawal process might take weeks or a few hours. Furthermore, circumstances might alter based on your location.
To withdraw funds, traders can follow these steps:
- Choose the ‘withdraw funds’ or ‘withdraw my funds’ option on the dashboard.
- Enter the amount you wish to take out.
- Choose a withdrawal method.
- Submit the request
After traders validate their payment, the broker authenticates it and funds your trading account with the entered amount. You can use this amount to trade binary options and earn profits.
Regulations in Egypt
The FRA takes superior control to ensure that the binary options brokers carry out no fraudulent activities within this trading format. Therefore, the authority has asked the citizens not to take up binary options trading services from local brokers. Due to this decision, no local brokers are available for its citizens to trade binary options with.
Egyptians can commence binary options trading in Egypt by relying upon offshore brokers. The FRA has no regulation to ban this trading format but constantly raises warnings to inform people of its risks. The FRA is taking all possible measures to suppress the possibility of fraud by unregulated brokers.
FRA has provided educative guidance to the Egyptians on the difference between regulated and unregulated brokers. Regulated brokers are platforms with international licenses to offer services in permissible countries. On the other hand, unregulated brokers are the ones that do not have any specific authority license to operate in diverse countries.
Unregulated brokers might produce fake licenses to win your trust. These brokers may engage in fraudulent activities like manipulating asset prices and misappropriating your funds. Therefore, traders should consider checking the directories prepared by FRA with a list of regulated and unregulated binary options brokers. Moreover, you can also check a broker’s ratings, reviews, and market presence to know its authenticity.
FRA suggests that traders should do their research before they can use any of the brokers. FRA is concerned about proposing protection for the rights of non-banking market investors. Moreover, FRA doesn’t intend to keep the Egyptians away from trading aspects, but it helps you by spreading investment awareness and culture.
Conclusion: Trading binary options is legal and available in Egypt
This article is based on customer reviews from the binary options brokers’s user base in Egypt. All the brokers listed above are legal and provide transparency while trading. Still, traders are advised to research before choosing one to trade binary options with.
Remember that while trading binary options is profitable, some risks can cause you to lose all your capital. Make sure to do thorough research before investing in binary options.
Frequently Asked Questions (FAQ):
Is binary trading legal in Egypt?
Trading binary options is legal in Egypt since its government has not imposed any restrictions. Moreover, Egyptian traders can rely on offshore brokers to trade binary options as they aren’t restricted to trading with brokers under Egyptian regulation.
How much money do you need in Egypt to trade binary options?
Most brokerages that offer binary options trading require a minimum deposit of 10 USD to 50 USD. Thus, Egyptian traders need at least 310 Egyptian Pounds to create an account with a broker and start trading.
What are common payment methods for binary options brokers in Egypt?
The average brokerage offering binary options trading accepts debit and credit cards besides wire transfers. However, many brokerages also allow traders to deposit funds via online wallets like PayPal and cryptocurrency.
