Binary options trading is becoming quite popular in Australia. Unlike in America where traders have to contend with where to operate accounts as a result of tax compliance issues, or in Africa where most of the issues have to deal with trading infrastructure, Australian binary options traders have virtually no issues to contend with. The market is classified as a true investment vehicle, and appropriate regulatory oversight is in place. Traders therefore only have the problem of choice: whether to choose a broker out of the few homegrown brokerage houses in Australia, or trade with a foreign broker.
So if you are an Australian citizen, or you live in Australia, how can you get about the business of trading binary options? We review the contending points one after another.
a) Broker Selection
This is by far the greatest contending issue that will confront Australian binary options traders. The question is: is it better to choose a binary options brokerage located in Australia or to go with a foreign broker?
Australia is a major financial trading hub in the Asian region, and for this reason, many binary options brokers with origins outside Australia have begun to place branches of their business in Australia. The binary options market in Australia is regulated by the Australian Securities and Investments Commission (ASIC). Every binary options broker operating in Australia is required by ASIC to fulfill a number of requirements that certify such a company fit to offer binary options brokerage services in Australia. Regulated brokers are provided with an ASIC registration number. If you are a binary options trader in Australia, it is better to trade with a broker that has an ASIC number. This gives the trader all the protection that a regulator can provide and a chance for reprieve if something goes wrong.
The presence of a regulator for this market is indeed a game changer which has conferred a unique advantage to Australian traders not available to traders in other regions. The regulatory status of a broker can be ascertained from ASIC, and the regulator also receives, investigates and handles any complaints of impropriety from the investing public.
b) Payment Methods
Being a major financial hub in the global financial marketplace, Australia is not subject to any international financial restrictions. Therefore, Australians have access to almost any deposit and withdrawal payment channel that can be used in the market. These range from the use of credit/debit cards, e-payment channels such as PayPal, Moneybookers, etc, and the conventional bank transfers. Since many brokers are domiciled in the country, there are other methods of internal money transfers that suit traders very well.
c) Trading Hardware
Many of the brokers who do business in Australia provide mobile trading services. Australian binary options traders can take advantage of this opportunity by using their smartphones and tablet devices to trade on the go.
d) Trading Resources
Success in the binary options market is highly dependent on the resources that are available for trade analysis and execution. There are not many sites that provide such information tailored to Australian traders. This website is one of the few sites that provide such information. Information about methods of technical and fundamental analysis, broker selection criteria, trade tools and how to use them as well as other tools such as charts, price quotes, news feeds and technical indicators, are available.
Why is it important to have access to resources customized for the Australian target market? Let us take an example as follows. Certain binary options assets are only available for trading at certain times of the day, and there are certain brokers that offer Australian assets such as the ASX-200 stock index asset for trading. Australian traders will be best suited trading assets which are homegrown, and which can be traded at times that are convenient for the trader. A trader based in Australia will need some guidance as to how to go about this, and this is where customized trading resources will come in handy.
Trading binary options is a good alternative for Australian traders who want to avoid the high risk markets and make money with peace of mind. Attention should therefore be paid to the points raised in this piece in order for this to happen.