Australian Traders Guide
Binary trading is seriously popular across the world, and Australia is no different.
It isn't as complicated as you might think; in fact, once you are familiar with how to trade most people find it an easy way to make money. All you need is a broker that focuses on making your experience safe and secure, and once signed up try a demo account or bonus to learn the ropes before trading for real money.
In this article, you will learn:
- The brokers best suited to your needs
- What local payment methods are accepted
- Taxes and fees that apply to AU residents
Traders in Australia
Wherever you are in the world there seems to be one question on most people's lips "Is binary trading legal?" The short answer is that there is nothing illegal about binary options in Australia. Some countries more heavily regulate it, and there may be sanctions and restrictions in place, but these tend to be more on the broker than the trader. All said it is perfectly legal to trade with both local Australian and International brokers providing you do your research.
The issue with finding an excellent Australian broker is that many of the best ones tend to be located and licensed in places like Cyprus with many based in Europe. There don't tend to be as many brokers in countries like the US and Australia. There are a few native to Australia, but often you can't get as many benefits and incentives as offered by the larger global brokers such as:
There are a few options offered. These include a no deposit or a deposit bonus. The no deposit bonus llows you to try out the platform before you spend your own money. If you decide it's not the broker for you, then you have lost nothing. If you are keen to build up your capital, then a deposit bonus is useful.
If you are new to trading, then a demo account is a must-have. You can then use the demo platform to familiarise yourself with trading and to practise without risking your funds.
If you are doing everything from a handheld device like a phone or tablet, then you are going to want to use the flexibility of trading on the go. Make sure that the broker you choose offers apps that are compatible with your device or a suitable mobile website.
The payouts do tend to range between brokers from 70%-85% as standard. Some brokers offer lower amounts and some higher. You need to weigh up what is important to you to stay profitable. Make sure not to get sucked into a deal that is too good to be true as often they can be.
Some Australian traders prefer to use local websites as they feel it offers a greater sense of protection. Unfortunately, this isn't always the case especially if the industry isn't regulated. Use our recommendations to help you choose a broker with confidence.
Broker Fees And Tax
On the tax side of binary trading, Australian brokers aren't required to keep records for tax purposes. As Australia taxation differs from region to region it is vital for each trader to ensure they maintain their trading records should they need to pay taxes on their profits.
As with most countries, Australians are expected to pay tax on investment profits if their income is over a certain amount. We advise you to check what the implications are for you and what fee you will be liable to pay. There are three types of Australian tax that a trader should be aware of, these are capital gains tax, income tax and any possible tax on gaming specifically.
While it is not up to the broker to provide you with your records, it should be possible to see a list of transactions including profits and losses within your account on their website. Before you start trading ensure that you can access this information so that you can file adequate returns.
Aside from being aware of any tax implications, it is also important to know if there are any other fees you will incur. Often the costs are small, but they can soon mount up. These trading fees include:
If it costs you a certain amount each time you carry out a transaction, to or from a web wallet or credit card, you may want to restrict the number of purchases you make. Making larger, less frequent deposits may reduce the fixed transaction fees.
With Australia being home to a large proportion of options traders it is every broker's goal to get a share of this expanding market place. With so many people investing in binary options, it is essential that the industry is regulated and that investors have protection. ASIC fulfils this. ASIC stands for Australian Securities and Investments Commission and is the regulator for the financial markets which includes online sites.
ASIC's job is to ensure that companies are regulated and that the financial interests of investors have protection. Australian traders can trade with brokers that are licensed by European CySec (Cyprus Securities and Exchange Commission) and many brokers seek this licensing to allow them to operate in countries where this is recognised.
With so many companies trying to break into countries like AUS and take their share of investors it can be a minefield trying to choose the best Australian broker to use. As well as ensuring that they follow regulation law there are also other things to consider. What benefits do they offer? What is the software platform like and what are the payouts?
It is tempting to fall for the offers of those that seem too good to be true. If they look too good, then they could be best avoided. Always ensure that you invest your money with a regulated binary options broker and not someone likely to disappear with your money.
When it comes to binary options, Australia is booming!
How we Recommend Brokers
Our mission is to furnish you with enough of the relevant information for you to make an informed decision about the broker that you will use. There are so many brokers fighting for their space in the marketplace offering all sorts to encourage individuals to open an account with them that some may be suggesting things that stand out for all the wrong reasons. We spend time researching all of the sites and bringing to you only the best with our extensive reviews and research.
It is vital to ensure that all of our recommended companies are regulated, authentic and aren't going to leave you with a bad taste. The best binary options trading in Australia should be fun and rewarding not the stuff of nightmares.
Our thorough reviews result in us being able to recommend the finest that the market has to offer and some of the best trading platforms and incentives. We score all brokers on a star system awarding them points for how well they score in each area. These areas include payouts, bonuses, ease of use, their trading platform and more.
During our review process, we examine the accounts brokers have to offer from the Basic account right up to the VIP Premium account and how easy it is to trade on their platform. All of this information allows you to decide on the broker for you from a comprehensive list of features and benefits. So don't spend time analysing accounts only to find yourself more confused. Let us help you choose the perfect choice for you.
Frequently Asked Questions
Is binary trading in Australia legal and safe?
Yes, trading is legal, and as long as you do it through a trusted broker, it is safe. Because of the stiff competition from European based companies, there aren't as many that are native to Australia.
Do I need to pay fees and taxes on my profits?
While binary options brokers don't have to keep records and declare your earnings as a trader to the government, it is up to you to report any income from trading when it comes to submitting your self-assessment tax returns.
Can I test brokers before trading with real money?
Yes, many sites offer two types of solutions to enable people to try before you use real money. The first option is a demo account, and another solution is to use a welcome bonus.
Is it easy to make deposits and withdrawals?
Most websites accept several popular forms of payment to make deposits into your binary options trading account. Withdrawals can take up to 3 days and are made to the same method as used to deposit funds.
Can I trade using my mobile or tablet device?
Any reputable broker should have a well built, intuitive mobile platform that enables you to trade with a handheld device, meaning you can work on the go.
Shelly is proud of her current position as Head of Brand for a well-known organisation that owns several brokerages in the trading sector. She’s consulted for us since 2015 and readers can benefit from her insider knowledge of how brokers work.