It’s a common knowledge that Australians are big fans of gambling. Statistics in the past have shown that they spend more money annually on playing casino games than any other nation. Although binary options trading is considered as a type of investing, its nature is very much like gambling. In fact, financial brokers are some of the biggest gambling “operators”.

Australians love looking for more ways to earn an income, and binary options are an excellent source of income. This form of trading is experiencing an ever-growing popularity on the internet, especially now when governments all around the world have decided to regulate it and make it fully legal. It’s one of the easiest and fastest way of earning profits in Australia.

The world of binary options includes all kinds of trading. From indices to commodities, currencies, stocks etc. You just have to predict the price and wait for the outcome. You guess it right, you win money. Easy-peasy. All you need is good insight into the world of economics. And if you do have one, why not capitalize on it?

List of Binary Option Brokers accepting traders from Australia:

Broker Offer Trade Now / Review

Deposit: $250
Payout %: 100%

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Deposit: $200
Payout %: 81%

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Deposit: $250
Payout %: 90%

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Deposit: $100
Payout %: 85%

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Binary options are very popular because they offer the possibility of making quick profits at lower risk, which is not the case with forex or traditional stocks. Furthermore, with binary options you know exactly how much you can gain and how much you can lose.

Frequently Asked Questions

To make things more clear, here we have information segmented into question-answer form. We have found the ten most frequently asked questions asked by Australians interested in binary options and we tried to provide the best answers to these questions.

  1. Is binary options trading legal in Australia?

    Yes, binary options trading is legal in Australia. There is no law whatsoever that makes binary options illegal. There are in fact Australian brokers that offer binary options trading. They operate with an official Australian license, ASIC license. But, if you don’t like what they offer you can always go to brokers based in other countries worldwide because all of them accept Australian traders. There is a big number of legitimate brokers based in Europe that even offer payment methods preferred by binary options traders from Australia.

  2. What is the regulatory body responsible for regulation of binary options?

    The regulatory body that regulates binary options and issues licenses to brokers is the Australian Securities and Investments Commission (ASIC). It has the authority to regulate financial service organizations, financial companies and financial markets. In 2010 it became the responsibility of ASIC to supervise the binary options market. Other two regulatory bodies that aid in improving the efficiency of the regulations are the Council of Financial Regulators and the Australian Prudential Regulation Authority.

  3. Is there a large number of Australian binary options brokers?

    The binary options market is a fairly new one, so there are only several official brokers in Australia. But, seeing how the interest in this sort of trading expands throughout the country, it is expected for more binary options brokers to appear soon. Make sure to always trade with the help of a licensed broker. If the broker is unable to provide proof that it’s a licensed broker, it has no credibility and has to be avoided at all cost.

  4. What is the alternative to Australian binary options brokers?

    It’s always recommended to seek binary options brokers that are registered and licensed in Australia. That way you are ensured the highest level of protection and the opportunity for reprieve should it be required. This doesn’t mean that you should avoid foreign brokers at all cost. If what Australian binary options brokers offer is not what you seek, you can try with European brokers. The majority of them are registered with the Cyprus Security and Exchange Commission (CySEC), and they abide by the standards set by this commission which is important.

  5. What assets should I choose to trade?

    It’s best to choose assets that are relevant to you and you are most familiar with. That way you can minimize risk and maximize profit. For example, it’s best for an Australian trader to choose binary options that involve the Australian currency. It’s his native currency thus he should have lots of information at disposal if the currency rate should drop or increase. Binary options are considered an easy way to make profits, but not if you don’t have solid understanding of the markets.

  6. Where can I find resources for Australian binary options?

    The ASIC is a good place to start because it’s the biggest authority in Australia concerning these matters. Traders count on ASIC to obtain news about possible scams or unregulated brokers, as well as all the latest information on safe trading practices.

  7. What are the types of binary options?

    There are two main types of binary options trading. The first is called Once Touch Binaries. This is when you “bet” that the asset price or underlying market will or will not touch a specific level at some time at or before expiry. The other is called Digital Binaries, and you “bet” that the underlying market will or will not end up higher or lower than a specific level at expiry.

  8. What are the risks of binary options trading?

    Binary options are simple, but involve risk because they are speculative products too. Usually you can make up to 90% of your investment depending on the broker. But, if you lose, you lose your entire investment. So be careful. Also, once you buy a binary option contract, you can’t re-sell it to another trader before it expires.

  9. What is the minimum deposit for a trader?

    Every Australian binary options broker has a different minimum deposit policy. The minimum deposit required can be as low as $10 and as high as $250. It all depends on the broker. Choose a broker that meets your spending limits.

  10. Are there illegal brokers in Australia?

    Just like with every industry, the financial trading industry has illegal operators too. Despite the fact that ASIC tries its best to weed out all illegal brokers, there are still fraudsters out there, which is why you should always trade at licensed brokers. However, the number of unlicensed ones has significantly dropped.

Our Top Tips on Choosing the Best Broker

Here are short tips that you can use to guide you through the process of selecting which broker suits you best:

  • License and Regulation: Make sure the brokers that you are considering are regulated by ASIC or some other regulatory body in the case of foreign binary options brokers. Licensed brokers don’t fail to brag about their license, which has the registration number.
  • Deposit/Withdrawal Methods: You can’t trade if the broker doesn’t offer payment methods that you can use. Check the available deposit and withdrawal methods before deciding to open an account.
  • Customer Support: All-around communication is important. Most brokers offer 24/7 binary options experts that can help you via chat or telephone. But, it’s also important to research if the customer support staff has received positive feedback in the traders’ community in terms of professionalism and helpfulness.
  • Mobile Trading: Check if you can trade using your smartphone or tablet in case you spend lots of your time on mobile devices.
  • Trading Resources: The best online brokers offer resources such as trade tools, quotes, news feeds, analysis and fundamental education about binary options.
  • Demo Accounts: Demo accounts that help you test the trading platform for free are extremely important.
  • Returns: Look for brokers that offer higher returns ranging between 70% and 90% on your investment.
  • Bonuses: Bonuses are great incentive and can give you a nice boost. However, don’t fall for the first bonus you are offered. Check the terms and conditions and what is the required minimum trading volume for the release of the bonus.

Legal Australian Binary Options – Summary

Is binary options trading too good to be true? The social media are flooded with apps that promise easy trading and prospect of large profits and success. But, if you don’t fully appreciate the risks you can end up losing more than you ever imagined.

There are many traders that have sent money to questionable and unlicensed online brokers. They were enticed by promises for big money, but ended up with significant losses. Never get into binary options if you don’t understand the risks involved in this form of trading. Educate yourself first for all the possible outcomes.

The best way to protect your money is by going to reputable and well-established brokers. When you’ve done that, the only risk of losing money is a product of your lack of knowledge on how to trade. Spend several days, a week or an entire month to learn how the market works. Spend time on preparing as long as it takes. Think like an investor.