A look at some recent trends among binary options brokers that indicate the industry is entering the mainstream of the financial world.
Are Binary Options Going Mainstream
It’s been a long time coming but I can say that yes indeed binary options are entering the mainstream. Often regarded as the unwanted step-child or younger brother to forex, the industry is beginning to grow from an ugly duckling plagued by scams to a more mature and well received trading solution. Over the past year there have been numerous signs that the instrument is gaining acceptance and growing in popularity among traders, financial service providers and the investing public. At the same time the publicity is drawing the attention of international regulators who are slowly but surely helping this form of trading come into the light.
The first glimmers that binary trading was growing in popularity was the emergence of advertising deals with major sports teams in 2014. These deals, between top names like 24Option and Italy’s Juventus football club, are positive signs on two fronts. First and foremost is that the broker is making enough money to see the benefit in such a deal. Second is that Juventus sees the benefit in partnering with such a well known binary brand. Together the two are partnered in media and other events intended to help raise awareness of both. Other brokers getting on this bandwagon include TopOption and EZTrader who have joined forces with British soccer club FC Arsenal and Germany’s Bayer Leverkusen and Feyenoord Rotterdam respectively.
Following In Forex Footsteps
Partnering with a sports team is not new in the financial world. It was pioneered by the forex industry years ago and merely copied by binary brokerages who are following along in big brothers footsteps. Like big brother, binary is also making its foray into the world of publicly traded companies. AnyOption was the first to explore the possibilities of selling itself to the public but has so far not been able to complete the deal. Rival technology provider TechFinancials, owner and operator of 24Option, was able to successfully sell itself to the open market in an IPO that took place in March of 2015. The company is planning to use the money to increase investment in the platform which includes the addition of forex style trading tools and an entrance to the US market.
TechFinancials’ plan to add forex style trading tools highlights yet another trend in the binary industry. Not only are more and more brokers adding tools such as simple spot forex, CFD’s, ladder options and 0-100 style trading many forex brokers are including binary tools on their platforms. Leading forex broker Avatrade was one of the first to attempt to launch a binary options solution but failed in its attempt, primarily due the separation between the parent company and the binary brand PowerOption. Since then the forex industry has wised up and simply added binary to their existing platforms. SpotOption is one of the leading examples among the binary brokers with its addition of Ladders and Forex to its already stellar line-up of trading tools.
The lines are blurring between forex and binary options. One reason is money, the other is that binary options is seen as a gateway to more advanced trading. There is money in the industry, that has been proven, making it an attractive addition to financial services providers around the world. London based ETXCapital is only one high profile name to have made the addition and has reported a notable increase in demand. So notable in fact that binary options have become what they call an “integral part” of the companies services. Whether it leads to more advanced trading is yet to be seen. Trends indicate that many former forex and CFD traders are turning to binary instead.
What This Means For Today’s Traders
All this activity in the trading world is drawing the attention of regulators around the world. Many countries have already adopted regulation of binary options as a financial tool and many more are lining up to do so now. At this time regulation remains spotty but the good news is that it all adds up to more choices for traders, safer trading environments and more liquidity.