Trading with binary options is currently illegal. Check the ASCI website for updates on this. It is very likely that binary options brokers can apply for licenses in the future but this will take some time. At the moment we do not have any “typical” binary options brokers to recommend for Australian traders.
Australia is regarded as one of the major trade and financial market jursidictions in the world, located in the Asian-Pacific region. Australia falls within the Asian time zone. As one of the major financial trading market zones, Australia has its own financial regulatory authority which oversees the activities of brokers in all trade zones, including binary options (fixed odds).
Before an individual living in Australia undertakes the journey to make money by trading binary options, it is pertinent to find out certain things about how the digital option market operates in this trade area. Some of the issues to be considered are as follows:
Is binary options considered as a form of gambling or not?
This issue borders on taxation. In Europe, digital options are considered as a form of gambling and therefore free from taxation. In Australia, a capital gains tax is charged on market investments, and this will include investing in fixed return option assets.
What are the option brokers available for trading digital option assets in Australia?
This leads to another question: do traders use local digital option brokers or do they go for the option dealing firms located in other countries that accept Australians?
It can work both ways. For local trade, IG Markets (AFSL 220440) is an example of a fixed odds market broker that can be used as it is regulated by the Australian Securities and Investment Commission (ASIC). It is part of the IG Group which has offices in several countries where digital options is regulated. If trade with foreign dealing firms is preferred, there are other digital option brokers located abroad who are regulated within their respective locations, and who accept Australian clients. Examples of such option brokers include StockPair and Banc de Binary.
What underlying asset(s) should be traded?
In order to increase the chances of profiting from fixed odds asset trade, Australian users should focus on familiar trade assets. These include the Australian currency pairings (AUDUSD, AUDJPY, AUDCAD, EAURAUD, etc), the commodity asset correlated with the Australian Dollar (gold), the Australian index asset (ASX200) and stocks listed in the Australian stock exchange. Financial gains from price variations in the fixed odds arena are more easily made by betting on familiar instruments than trading assets that are domiciled in foreign jurisdictions. This is a no-brainer.
Now that we have identified the key issues involved in trading fixed odds in Australia, here are the steps to take in order to profit financially in fixed odds trading Australian-style.
Step 1: Opening a Digital Option Account
In order to open a binary options account in Australia, a choice should be made from the following:
a) Banc de Binary
b) IG Markets
d) GFT Australia (AFSL 344086)
These firms do not unduly manipulate the asset price system. Traders get a fair price on all trades.
Step 2: Funding the Account
The most popular means of depositing and withdrawing money from binary options accounts is by the use of credit/debit cards, Moneybookers (Skrill) and bank wires. Traders in the Australian financial jurisdiction will have access to all these money transfer methods of transaction. If you want to make money from a fast moving price in binary options, time is of the essence. You need to have access to a method that ensures instant deposits and the fastest withdrawals in the system so you get into a position at a good price and on time. Credit cards and Skrill will guarantee both. Skrill has the added advantage of providing timely payment processing for more than 100 country-specific payment methods, so even if a trader in Australia does not have a credit card, Moneybookers can do wonders in such cases.
- Trading the Binary Options Account: Knowledge on trading techniques has to be acquired from webinars, e-books and review sites. There are many such sites loaded with information on how to trade, how to determine the best price for positions, etc.
- Withdrawing from the Account: Withdrawals follow the same methods used in funding the account. Each broker will have its own withdrawal policies.
- Taxation: When profits on price variations in the fixed odds market are made, the trader should endeavour to settle all tax obligations to the relevant authorities.