The binary options trade is legal in Germany as opposed to some nations like Italy that see it as a form of gambling instead of trading.
German investors are allowed to trade their resources using binary options, and companies within Germany are also allowed to offer binary option services. Today, there are no specific laws in the country about its scopes and limitations. Investors can deposit and trade as much as they want, and deal with any broker they want.
Dealing with brokers
While there are currently no laws governing the binary options trade in Germany, that doesn’t mean investors should trust anyone that offers binary options services. Like any other sites that offer financial trading, safety must be the number one priority.
Before dealing with a site, investors should check whether or not a financial site is legal and licensed. On BinaryOptions.net, clients are provided with a list of brokers that are safe to deal with. In Germany, investors may check with the Federal Financial Supervisory Authority — the monetary regulating body of the country — whether or not a broker is licensed.
Will Germany implement its own laws on binary options?
Hopefully, yes. Right now, only the U.S., UK, Malta, and Cyprus have laws on Binary Options. German traders who use binary options must pay close attention to the rules of individual brokers, especially with options that expire on the strike price itself, and when calculating for expiry prices. If Germany will have laws on binary options, rules can be centralized and have greater transparency.
The binary options trade doesn’t require much capital from investors. Volatility is a trader’s friend in this type of trade since price movements mean profits. Gold, the precious metal that’s commonly used as hedge against financial failure, is great for binary options since it’s highly volatile. One look at the precious yellow metal’s price movements in weekly charts and you’ll see why it’s a popular asset used in binary options trading.
It is not known when Germany will create a law for binary options. It is the first country to consider Bitcoin as a reserve currency and this should tell you how lenient it is when it comes to freedom in investing. Still, having a law for binary options would be great since it will give German authorities regulatory oversight of the trade.