Is Trading Binary Options a Gambling ¦ South Africa

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Is Binary Options Gambling or not?

Our readers in South Africa sometimes ask is binary options trading same as gambling or are there any differences between these two industries.

To majority of population, binary options trading is still relatively unknown field and they don’t have enough information regarding binary industry. Therefore, they search for more info and check if there are similarities with gambling world.

Here on Binary Options South Africa, we will try to provide our readers a detailed information about similarities and differences between binary options and gambling industry and answer on question is binary options gambling or not.

As stated above, people interested in binary options can see how there are few facts which are alike to gambling, such as risk involved, strategy and excitement during process itself. Besides that, there is a big contrast between those two industries.

For more on is binary options gambling or not, check below in our article.

Trading / Gaming / Gambling Definitions

To begin with, let us introduce you with several definitions, relevant to this topic.

  • Trading – term used in binary options or any other financial sector, which implies an action of entering or closing the position on financial market. Basically, it explains swapping money for a particular financial instrument.
  • Gaming – term used for types of gambling activities, approved by law. This is actually legal gambling.
  • Gambling – term used as wagering money with an uncertain outcome. Motivation to win and earn money is the biggest factor.

Trading vs. Gaming Risk

Both traders and gamers find risk assessment to be the focus of participating on different markets in order to make a profit. This can be done either by wagering an amount of money or by detecting chances that can lead to winning status. Same logic can not be used in trading and gaming world. Read more below.

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Risk in Gaming Industry

When people think on gaming, the first that comes in their mind are online gaming sites. These sites include online casinos with a wide selection of different games, including poker, slots, bingo, roulette etc.

So let’s say, you are a gamer and want to know how to profit from playing online casino games. Since software basically executes entire job and manages the way of odds outcomes, it can be pretty challenging for player to create his own chances to win.

Software itself uses random algorithms to create specific odds and it takes a special level of expertise to understand strategies, which can be used to increase odds of winning and achieving high payouts. To master those strategies, a great amount of data is required for players to be able to accurately predict final outcome.

Risk in Trading Industry

Unlike gaming risk, South African traders should know that risk on financial markets, such as in binary options industry is completely different.

This trading risk involves risk in short term period, as in forex, binary options or CFDs and also long term risks.

In binary options, risk can depend on several variables.

One of them is an underlying asset, such as stock, currency, commodity or index. Risk level depend on the value of an asset that fluctuates as they are being traded in predetermined period of time. This is basically what’s the most important to know for all South Africans interested in binary options trading.

As a new online investment type, binary options trading is based on predicting an asset movement (up or down) in a specific time in the future.

To be successful when trading binary options is to read broker reviews to get better understanding of available trading features and check the latest important market news and reports.

This can serve as great help to increase chances of winning and have more knowledge in order to accurately predict possible effect that might influence on specific asset. Sites, such as financialmail.co.za, moneyweb.co.za and fin24.com are an excellent prime sources for valuable financial news.

Popularity of Binary Options Trading and Gaming

It is assumed that gaming and trading industry target different types of people. In gaming world, luck and excitement are the peak of player’s experience.

Usually, luck is the most important element to succeed in case strategies aren’t followed. A lot of online gaming sites have tendency to offer bonuses to reward their players and offer them exactly what they want – more thrill to enjoy the game.

Binary options trading also brings thrill for their traders, but in a different way. Binary industry appeared in late 2008. Since then, they quickly gathered a lot of people worldwide who wanted to experience this new way of online investment.

Thanks to its many benefits and great possibility to maximize profit, binary options trading is widespread in South Africa. Traders are able to invest in binary options with many reliable brokers, listed here in our trusted broker list.

South Africans are able to trade with different trade options, such as 60 Second, which enables excitement in 60 seconds, High/Low, One Touch, Ladder and many more, depending on which broker traders select. Binary industry enables a wide selection of expiry times, both short term and long term, up to 150 days.

Regulatory Status

Majority of traders who are interested in online trading or gaming industry, prefer those who are regulated.

Traders in South Africa should know that both industries are covered by gaming authorities, that provide them regulatory license.

There are few countries which enable regulation to binary brokers and other gaming companies to conduct their business transparent.

First one is Cyprus and well-known CySEC (Cyprus Securities and Exchange Commission) regulatory body. CySEC is responsible for binary brokers and oversee if EU rules are implemented on their trading platform.

However, in gaming world, it is obligation of the regulator by which software has to ensure a specific payout that is spent playing. This is logical, because otherwise there are room for manipulation on payouts of funds on machines. They could easily use player’s incapacity to track the odds and make false promises of possible jackpot.

Nowadays, there is approx 95% of possible return and it all depends if a big sum of money has been paid recently.

Trading vs. Gaming Conclusion

To summarize, although there are some elements which are similar to trading and gaming, it is clear how there are even more differences, without mentioning differences between trading and gambling.

As stated above in the article, to answer the question is binary options gambling or not, answer is definitely no.

Both gaming and binary options industry imply that traders have to invest and risk their own funds. However, experience, motivation and strategy are those that make the key difference between them.

Although, luck can turn out to be handy sometimes, but in binary options trading, traders in South Africa should rely on strategies, analysis and understanding of financial market and available trading instruments which can lead them to achieving high payouts.

Am i Gambling When Trading Binary Options?

September 26, 2020 11:45 am

Binary Options is here to stay! It is much easier to understand and trade than the traditional trading platforms. Everyone is trying to get a piece of it at the moment.

If you are new, let me try explaining binary options. They are contracts between a buyer and seller. The buyer looks through the many assets and chooses whether the asset will fall or rise in the immediate future. If he is correct he gets paid out the predetermined amount from the seller. If he is wrong he get nothing. Due to it being so simple to understand it has become very popular of late and investors love it!.

Back to the topic, is binary options gambling? You would think it is comparable to gambling especialy roulette since all traders need to do is try and anticipate whether the price is going up or down. Once the market or asset has closed he can either be paid as high as 80% or loose his investment. The best part is one does not need to pay any capital gains tax on winnings. Although this is starting to sound like gambling we also need to consider some facts.

People that trade binary options often call it their business. They research using various systems and tools as well as analyse just as you would in your traditional business. These traders therefore understand their market. This requires dedication and commitment. To these guys Binary is a calculated risk and is definitely not gambling.

To conclude, binary options would be considered gaming to guys that come in to try make a quick buck without the research. However it can never be gambling as needs to conduct research before he makes his choice on what to invest in. Of course there are risks but we are confident in saying Binary Options is not gambling.

We have seen many people in South Africa with the desire to participate on the financial market and profit from it, but never knew how.

Now, with the appearance of binary options, financial trading has become easier than ever. With binary options South Africans now have an extremely convenient way of becoming traders through online investments with possible higher payouts than they have ever hoped for.

The best thing with binary options is that you don’t have to be an expert in trading. Binary options provides a straightforward way of making money and capitalizing on your limited insight into commodities, prices, stocks, currencies and everything in-between.

The attractiveness of binary options is composed of something else too. Its nature is very similar to gambling because in a way you bet that a certain prize will come up or down. Because of this, binary options has attracted many traders that love gambling too. It is also the reason why authorities have viewed it with doubt and were reluctant to regulate it.

List of Binary Option Brokers accepting traders from South Africa:

However, when all the doubts cleared some years ago, governments all over the world started passing legislations with the purpose of making binary options legal and a valid option for profit. The subsequent result was the emergence of legal binary options brokers that provided traders with safe and legitimate tools for trading.

Frequently Asked Questions

Here we give you a round of questions and answers that will eliminate any doubts about binary options and its legality. The burning question is whether binary options trading is legal in South Africa, which is why it is the first question we answer below.

Can I register with foreign binary options brokers?

How can I find the best brokers?

Are foreign binary options brokers safe?

Which are considered reputable licensing jurisdictions?

What are the best payout rates that brokers offer?

Can I deposit and trade in Rands?

How big are the bonuses?

Is there a way to try the service before making a deposit?

Are You New to Binary Options?

People that are new to binary options often get excited about it because it enables them to achieve high payouts in short period of time. Thanks to the fixed payouts and expiry times, you can choose trade options that can lead you to successful trading. That’s true in theory. It’s true in practice as well, but only if you have proper understanding of the financial market and prepared yourself for long term investments.

Besides gaining understanding of the financial market, you need the proper knowledge of trading instruments. These instruments are essential in maximizing your profit when trading binary options. The best way for beginners to avoid losses with their first trading attempts is to make investments on assets that are not so volatile. You can discover these by training yourself using a demo account.

However, thanks to the quick trade nature of binary options, the volatility factor can be avoided easily or at least reduced. When you trade you have a predetermined time-frame before making the trade, so it’s possible for your trade to be successful before the volatility factor kicks in. This is why binary options are so popular.

The Future of Binary Options in South Africa

At the moment there are very small hints that binary options will become a regulated industry in South Africa or maybe illegal. The second option is very unlikely. However, the positive outcome from the current situation is that South Africans are free to trade binary options without being persecuted. The negative outcome is that there are brokers that operate without a license.

If the government decides to regulate binary options trading, the governing body will be the Financial Services Board (FSB). The Board will be responsible for overseeing operations, regulate the industry and issue licenses as well as checking whether the brokers comply with the laws. Therefore, many positive aspects will arise from the regulation of binary options trading.

However, with the regulation there may be some negative consequences as in the case of the United States. Their laws forbid US citizens to trade at foreign brokers even though those brokers are compliant with the US standards for binary options trading. If such case happens in South Africa, traders will be forced to trade binary options only with South African operators.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

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