Each investor who has ever traded options knows about an ocean of opportunities of this investment. No wonder that binary options in Germany are becoming more and more popular. To trade them, you don’t need to be an expert. Quite a high yield can be reached even with little starting capital by means of rational financial risk management.
Legal Framework of Binary Option Trading
Binary options appeared on the derivative market of the Federal Republic of Germany in 2008. At first, investors doubted legality of this kind of trading but there are no legal restrictions on binary options in Germany. The only condition of trading is that a trader has to pay tax on a profit on asset transactions. In other words, investors interested in trading can open an account at any broker and start trading immediately.
Typically, the Germans choose European-based companies. National financial supervisory institutions of the Federal Republic of Germany supervise these brokers and ensure observance of the declared standards. Besides, transparency of trade is ensured by state supervision. Traders can request for information on additional expenses, terms of payouts and reward programs at any moment.
Regulation of Brokerage
A rapid rise in binary option popularity has caused growth of a number of companies offering this financial instrument. Along with a large number of German brokers, Cyprus-based companies come to the market. This is because of lower corporate tax than in Germany. On the other hand, Cyprus is the EU member, and the companies registered in Cyprus are allowed to provide financial services in the EU.
If brokers offering binary options in Germany are headquartered in Cyprus, they are regulated by the Cyprus Securities and Exchange Commission. The regulatory institution has a detailed list of licensed brokers on its website. Therefore, before you make a contract with a broker make sure that the company is licensed by CySEC or by the corresponding institution of the Federal Republic of Germany.
TOP-1 German Binary Option Brokers
One of the binary option favorites is 24option broker licensed by CySEC, BaFin many years ago. A convenient platform in German, low starting deposit is that distinguishes 24option from other brokers. By the way, these are the German traders that make the largest deals with 24option.
24option, the licensed broker, is undoubtedly the most popular broker among foreign companies. The key advantages of this broker are high reliability, attractive reward system and quick withdrawals. Novices can find a helpful video guide, and professionals can take part in the best trader competition. A trader can invest in a binary option only for a period of 30 or 60 seconds at this broker. 24option’s thought out platform allows even novices to earn €5,000 to €10,000 a month making binary options profitable and affordable.