Binary options trading in Seychelles

Binary options trading in Seychelles

Binary options is a kind of investment methodology to earn substantial profits within a short span of time. In some countries, it is treated as gambling as trading is viewed as highly speculative.

In real sense, all trading activities in binary options does not lead to speculation or gambling. If a trader trades with an unregistered or unregulated broker, then this leads to sort of gambling activities. This is because there is no regulation for such binary options trading in the country. As a result, the funds are at risk and there are also chances of prosecution of the brokers.

Hence, trading in binary options in Seychelles is legal if it takes place through registered and regulated brokers. The main issues concerning binary options are regulatory authorities and the brokers dealing with it. In developed countries such as US, UK, Canada, Australia and so on, binary options is regulated through a number of regulatory authorities. For instance, in USA, the CFTC comes into picture. In Australia, ASIC regulates the binary options in the country. Thus, every country has established a regulatory body for governing the binary options trading in the country and the activities of all brokers.

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Countries such as Seychelles and Mauritius have formed regulatory authorities to supervise binary options trading. The financial watchdog of Seychelles is the Financial Services Authority. Also known as FSA, it is primarily responsible for inspecting and evaluating the financial activities in Seychelles. The formation of FSA was done in the year 2013 as a result of the Financial Services Authority Act. Some of the primary responsibilities of this regulatory body towards financial companies and entities are as follows:

  1. Licensing.
  2. Supervision.
  3. Providing support.
  4. Overall development.

With respect to binary options in Seychelles, FSA’s role is significant. In order to encourage binary options trading in the country, the regulatory body has simplified the licensing regulations and overall procedure of obtaining a license for a broker. Even authorization fees needed for starting up a brokerage business is minimal. As a result, brokers prefer to get themselves registered under the Authority and work as per the regulations. If the registration process is designed in a simple, easy and affordable manner, then brokers will take a wise decision of registering with the Authority. This was the main objective of FSA to simplify the overall process.

Even if binary options in Seychelles is legalized, some traders prefer to trade in foreign countries such as Cypress where the trade is simplified and convenient for them.

Thus, traders who want to get involved in binary options in Seychelles must trade with the registered brokers only to ensure safety and security of their funds. However, if they are trading with the unregulated and unregistered brokers, then the consequences will be as severe as those of gambling. Even brokers need to check the regulations and registration process of regulatory authorities of Seychelles. There is always an advantage to register brokerage firms with the authorities as it legalizes and secures trading activities.