Category Archives: Social Trading

Binary Options Regulation Gets Stronger

Binary options regulation, and CySEC regulation in particular, is getting stronger and stronger. By this I mean that the quality of the regulation and effectiveness are both improving. On the one hand CySEC is standing tall, on the other regulators in EU and EU Economic Arena member nations are getting on board. The situation is one in which one leads the other, both making steps that ultimately are benefiting us, the traders.

CySEC Regulation Leads The Way

CySEC was the first to regulate binary as financial, breaking the industry wide open. EU member nations were at first hesitant to follow suit, casting doubts on CySEC and its jurisdiction as well binary options and the entire industry. CySEC regulation, because of Cyprus membership in the EU, is supposed to be valid in any EU member nation because of legislation in the EU charter, the MiFID and the EU Economic Passport. Member nations however tried to block the expansion of binary options into their countries but have so far not succeeded.

What they have done is raise awareness of binary options scams, enhanced the value of CySEC regulation and made the entire industry safer for EU traders. Instead of banning all binary options trading, or creating their own regulation for binary options brokers, member nations have chosen to allow CySEC regulated to brokers to register with them thereby validating CySEC regulation.

A few of the member nations made it easy, all that was required was a simple application process and compliance with CySEC. A few made it tough with one case standing out and setting the precedent that cements CySEC in its place. In this case Dutch regulators refused to grant a license/registration to a broker and the case made to the Dutch Supreme Court. The Dutch court ruled in favor of the broker, upholding CySEC and the MiFID, and forced regulators to grant licenses.

Today there at least 29 EU member nations registering binary options brokers. These include England’s FCA, France’s AMF and Italy’s CONSOB. I point out the AMF and CONSOB because they stand at the forefront of EU regulators issuing warnings against unregulated, unregistered and scam brokers. This move has benefited more than just the brokers and the traders, the move has also helped to legitimize binary trading and allowed access to opportunities not previously available.

New Opportunities For Binary Options Brokers

One such opportunity is TechFinancial’s IPO in 2015. It is the first platform/technology provider to go public and shows not only the viability of binary options as a business model but the public’s acceptance of these businesses. Another opportunity is in advertising. A trend developed in 2015, led by 24Options a TechFinancials broker, where binary brands teamed up with high profile sports teams like Juventus, Olympique Lyonaise, OGC Nice and Tottenham Hotspur.

These opportunities do not come without cost to the brokers. Regulation means transparency, segregated accounts and third party oversight. Compliance is not easy and if not maintained comes with consequences. CySEC will issue warnings for first and/or minor infractions with penalties increasing from there. Over the past 3 years the regulator has issued many warnings and fines and has even shut brokers down.

What this means for traders in the EU is that you have a regulated binary options industry that is only getting stronger and stronger. There are plenty of brokers for you to chose from, many of them not only CySEC regulated but also registered in your own local jurisdiction. Now you can trade and trade safely knowing that the brokers are legit and that someone has your back if problems arise.

Click Here Now For The Geek’s Binary Options Broker Reviews

Social Trading Broker Updates; New Tools, Lower Deposits

RSI, MA and Bollinger Band(tm) Strategy Adviser Tools For Binary Options

A new feature is now available on select few SpotOption based brokers. This is strategy adviser tool that provides short term analysis of a given asset based the RSI indicator, Moving Averages or Bollinger Bands. The tool quickly scans the chart and provides simple put/call recommendations. These can be used as signals but require a little confirmation at least. One thing I have tried is to use all three tools to see if they agree, sometimes they do, sometimes they don’t. Generally is only two are in agreement I would take that as a weak signal, if all three agreed that would be a strong signal. The tool is interesting to say the least but perhaps not something social traders need to waste their time on, after all, it’s only analyzing the crappy little charts you get from SpotOption. You can check out this trading tool at BKTrading.

HyOptions Lowers Their Minimum Deposit

HyOptions is a CySEC regulated broker with a growing reputation for its adherence to regulation, transparency and desire to operate in the long term. The broker has some really good features that make it a decent choice for EU traders. First, they have lowered their minimum deposit to only $100. This isn’t super low, but it’s pretty low, and goes well with the minimum trade size of $5. Another feature is the bonus policy which allows for withdrawal of profits after reaching only 50% of the minimum trade volume. It’s also one of the most complete brokers out there, it supports CFD and spot forex trading too.

The Geek Review Of HYOptions

EmpireOption Simulator and Withdrawal Terms

EmpireOption is a broker I have liked for quite some time. It is located in Uruguay and under limited regulation in the Uruguay Free Trade Zone. Built on the SpotOption platform is one of the fullest and most versatile binary options brokers on the planet. Features indlude iFollow copy trading as well as signals and the Binary Simulator is a feature available to preferred account holders and predicts the affects of bullish or bearish news on a given asset.

One of the biggest criticisms EmpireOption recieves is about its account and withdrawal policy. The broker has the strictest withdrawal conditions of any binary options broker but there is a reason. Unlike other brokers which require you to deposit your way to higher account status Empire will let you trade your way there. They encourage traders to build up their accounts by granting elevated account status as your account grows to each level. To be eligible for the next level your account must be above the minimum for at least 30 days. Benefits include faster withdrawals, larger withdrawals, lower trade minimums and enhanced returns.

Basic accounts, minimum deposit of $250, have restrictions like 10 waiting period between request for withdrawal and receipt of money, maximum withdrawal amount of $500 per month and a minimum number of required operations (trades) of 20. The minimum trade size is $25, a little high for a $250 balance, but not insurmountable. As your balance goes up to $1,000, $5,000, $10,000 and more benefits include 1 day withdrawals directly to a Skrill or Neteller account, maximum withdrawal amounts of up to $40,000 per month and only 5 minimum operations… pretty sweet.

Industry News; SpotOption, TradeThunder, new KYC rule & More

The point of social trading is to share knowledge and that is the point of this industry update. There are changes happening in the world of binary options, I’m here to help you keep up with what they are.

SpotOption Is Slowly Closing Doors For US Based Traders

CherryTrade has just announced that they will no longer be accepting traders from the US. The move is a surprise to both us and them but is the latest sign of SpotOptions foray into the US marketplace. SpotOption is working with Cantor Exchange to provide CFTC approved binary options but the change is slow in coming. What this means is that over the next few months we can expect to see more and more SpotOption based brokers who also accept US traders shut their doors to them.

Why? All part of the regulatory process most likely. For SpotOption to be approved and regulated by CFTC they will have to prove compliance on many fronts. For now, there are only two places to trade CFTC regulated binary, NADEX and Cantor Exchange, and both are significantly different from the traditional European style binary options on the market today. There are still a few brokers out there accepting US traders including CTOptions and Tradorax, each built on unique platforms.

TradeThunder Is Booming On The Scene

TradeThunder is a newer broker booming on the scene. They are accepting US traders so they are an option for traders who need to move from a SpotOption broker. It is built on the Leverate BX8 platform and comes with tons of features. Leverate, FYI, is the same company behind a well-known forex platform and the BX8 platform is based on all their years of experience. The company is owned and operated by LGK Industries, LTD with headquarters in London, England. They offer 40%-100% bonuses with minimum deposit of $200. If you don’t want a bonus minimum deposit is $20. Other bonuses for social traders are refer a friend and risk free trading, risk free requires a deposit of $5,000.

The platform is pretty trippy but packs a lot into one screen. A demo account is available for traders with no deposit required. The asset is pretty long but they only have call/put trading, no one touch, range or other. Expiry is also limited to 60 seconds, 5 minutes, 15 minutes, 30 minutes and 60 minutes. This really isn’t a problem for day traders but will exclude longer term swing traders. They have so far proved themselves trustworthy, a full review is in the works.

The Geek’s Review Of TradeThunder

New KYC/AML Procedures Require Prompt Verification

Brokers have always required verification of accounts in order for traders to make withdrawals but now those rules are getting tougher. There has been no change to requirements, you will need proof of ID, proof of address, proof you are the owner of any credit cards or bank accounts deposits are made from. What has changed is how the brokers are enforcing these rules.

In the past it was possible to use a credit card to deposit and begin trading within minutes, you really weren’t required to verify your account unless you wanted to make a withdrawal. Now brokers are requiring prompt verification, some are even requiring it before you are allowed to begin trading. What’s been happening with some brokers is that new accounts are being traded but if they aren’t verified within 3 days of opening the money is refunded back to it’s origination. What this means for social traders is that now it is even more important than ever to have all your proofs ready before opening any new account, and send them in as soon as you do.

More Choices For Binary Options Social Trading Platforms

There are now more choices than ever among binary options social trading platforms. I don’t mean those crappy little “trader sentiment” bars some brokers have, or even streaming trades from “real traders”. Those are bogus and not even qualified as copy trading, seriously, what do they do? Tell you that 60% of traders are bullish or bearish? What time frame? What expiry? I’m talking about real copy and social trading where you follow individual traders and copy their success. Those sentiment bars may be good as a signal but just isn’t good enough for those who would like to follow better traders, copy their trades, make a little profits and maybe learn something about the market.

Binary Options Social Trading, Not Just Copying

But what is social trading and how is it different from signals or simple copy trading? Believe it or not there are some differences. Signals and copy trading can be a cold affair. There is little to no interaction between you and the provider and no guarantee of success. In fact, many signal followers and copiers report that their success rates are far below those of the provider. This doesn’t mean that the provider is flawed, some are but some are legit, it just illustrates the difficulty in trying to duplicate trading results in more than one account. Social trading gives control back to the trader while providing signals and an environment for learning.

Some of the criteria required to meet the level of social trading platform include some form of signals, preferably from real traders and not software or robots. The platform must support direct copying into your account so that you can match results as closely as possible. There must be at minimum a leader board and at best a full forum so that traders can interact, preferably with profiles. Good copy trading accounts must also come with management tools to limit the size of each trade, amount of allowable loss. Finally, the platform must support direct trading and not just copying so that copiers can eventually begin trading for themselves and providing their own signals. This is a list of the five platforms that best fit this model.

TradeSmarter Social Trading Platform – TradeSmarter is a full service white label binary options platform with social trading features. It is one of the newest to offer social trading and fits most of the criteria of a great social trading platform. The basic platform is fully loaded with assets, options and expiry. Hi/Low is the standard but range, one touch and over/under are available. The Strategix feature allows traders to increase and decrease strike prices for the exotic options and thereby adjust risk/reward payouts. Basic copy trading features include a Trader Sentiment chart listing put/call ratios for dozens of assets. There is also a list of streaming trades by live traders. Users can log in with Facebook if they want. They can also build profiles where they can promote themselves or learn about traders they may want to copy. The only thing missing is autocopy but that is not a big deal, traders have to actively take signals in order to make trades. Despite this shortfall, there are numerous advantages to this platform which make a good choice for social traders

CopyOp Social Trading Platform - CopyOp is the stand alone copy trading platform of AnyOptions, owned and operated by the same company, Ouroboros Derivatives Trading LTD. The company is headquartered in Cyprus and both AnyOption and CopyOP are CySEC regulated. The platform allows traders to build profiles, search leader boards and copy trades directly into their account. All traders using AnyOption and CopyOp are included in the feed of possibilities making it one of the broadest bases of traders on any copy trading network. All trades come with a rebate, in the range of 15%-25%. Users are able to trade directly, or follow 5 or more other traders at one time. AnyOption support a wide range of trading including standard call/put options, one touch, 0-100 options and other exotic features. CopyOp users are also able to earn CopOp Coins. These are credits earned whenever another trader copies them and can be redeemed for cash or other prizes.

CTOption Binary Replicator - The Binary Replicator is the social trading feature of popular broker CTOptions. CTOptions is built on the PandaTS technology, a white label with several other brokers in the fold. The Replicator is a copy trading dashboard available directly from the main trading platform and allows users to copy or make their own trades. Built on a leader board, it allows traders to follow and copy up to ten other traders with trades placed directly into their accounts. Profiles are not provided but there is some basic data for each trader on the leader board, win rate, number of trades etc. Copiers are able to control the amount of each trade but length of time and total losses are left to the individual. Users can also pick others to follow from a live stream of trades, displayed at the side of the screen. The platform support high/low, range and one touch options in a wide array of assets.

SpotOption’s iFollow Copy Trading - This one is also known as Spot Follow but is the social trading application available on the SpotOption platform. SpotOption is a well known white label platform providing turn key solutions for brokers. The basic platform supports the broadest range of assets, options and expiry of any on the market including spot FX and CFD’s. The company partnered with ZuluTrade to produce the copy trading platform which displays each brokers top traders on a leader board. The leader board can be filtered by asset and displays basic information about each trader and their stats. Copiers can have trades placed directly in their accounts and have control over trade size, loss amounts and the length of time to follow each copied trader. The only thing missing are profiles otherwise it would be without a doubt the best platform. There are quite a few broker offering iFollow including regulated and non-regulated versions.