Binary Options Trading in China.
China is a massive country in terms of economy and population. The country has one of the worlds leading economies, along with the 3 rd largest stock exchange market in the world. There is no question that China is a viable option for the trading of financial markets. With these impressive facets, you would think the trading of binary options would be flourishing and well established in China. However, this is not the case, the country is still in the early stages of discovering and utilizing this amazing online investment method. Let’s find out more inside.
As said before, China’s binary options market is relatively small and undeveloped. Especially considering the massive development of other financial markets in China. Binary options trading is still relatively new, and has yet to be established as a viable investment method in the eyes of Chinese regulators. Although, with increased popularity, this is likely to change in the future.
That being said, brokers offering binary options trading in China are limited and relatively underdeveloped. However, for new brokers trying to break into the binary options market, they will not be faced with any legal issues to do so. It is perfectly legal, yet unregulated by any judicial power. The binary options market is gaining popularity with an immense increase of traders in the past couple years.
Recommended Binary Brokers in China.
Currency Pairs & Spread.
China has a very healthy choice of currency pairs to be traded as binary options. This is due to the lack of regulation, allowing brokers to set their own rules on what currencies can be traded. That being said, China’s most traded currency pairs are the same as other countries who allow binary options trading. These common currency pairs, which are called ‘majors’ are; EURUSD, GBPUSD, USDCHF, AUDUSD, USDJPY, and USDCAD. These major currency pairs have a very narrow spread due to the high trade volume and popularity. Some of the less popular, but still frequently traded pairs are; CNY, EUR, JPY, GBP, and CHF among others. These currency pairs are referred to as ‘crosses’ and generally have wider spreads due to their infrequent trading amount. In addition to these currency pairs, China traders also participate in the trading of ‘exotic’ currency pairs which include; MXN, TRY, THB, SGD, as well as various digital currencies. Their spreads are the largest of three types.
With the rapidly growing binary options market in China there should be plenty of quality platforms to choose from. However, there are not. The only platform offering the Chinese language in its interface is ‘Anyoption’, which is the biggest binary options broker in the world. This platform is the only one offering information accessible for Chinese clients. There are however other reputable platforms available in China, they just don’t cater to Chinese clients by providing platforms in Chinese.
Again, due to the lack of regulation of binary options trading in China, there are really no restrictions on international brokerages to be used. Hence, the option for plenty of bonuses from various brokers. Most brokerages offer the following bonuses.
Welcome Bonus – This is the most common type of bonus, usually receiving an amount of money just for joining a brokerage and making an initial deposit. No Deposit Bonus – Another bonus, like the welcome bonus, rewards you with money just for signing up and doesn’t even require a deposit. Mobile Bonuses – This is a bonus for downloading a brokerages mobile application and using it. Refer a Friend Bonus – Receive money for getting a friend to sign up, they may be required to make an initial deposit.
Deposit and Withdrawal Options.
When it comes to deposits and withdrawals for Chinese traders, they may not have as many options as other traders from around the world. Due to the restrictive banking system in China, they have only one choice in credit cards to use. China Union Pay is the most popular and only form of credit card deposit/withdrawal for Chinese traders. In addition to this traders in China can deposit and withdrawal money using various e-wallets or bank wire transfers.
Legality & Regulations.
Binary options trading is legal for both Chinese investors and brokerages looking to delve into this lucrative investment opportunity in the massive and powerful country of China. Currently there are no regulations regarding binary options and the investment practice is quite new in China and is expected to grow substantially. Regulation in China is known to be quite strict and old fashioned, but has mellowed down in recent years with the modernization and flexibility of changes in the financial environment. This has allowed foreign banks to slowly leave their mark and operate in all the major cities in China. All this has lead to the increase of binary options trading.
The regulatory authority of financial markets in China is known as the CRSC or China Securities Regulatory Commission. This authority does not protect investors from fraud or impose any regulations pertaining to binary options, but it does issue warning lists of fraudulent brokers in binary options. The CRSC provides advisory information pertaining to binary options, but has not gone further in terms of regulations. It seems that once the need for po.cash regulations by the CRSC happens, it will have little impact on limits to be imposed.
Are binary options legal in China?
Yes, it is legal for both Chinese investors and brokerages.
Are binary options regulated in China?
No, there are no regulations pertaining to binary options largely due to it being relatively new in China. With increased popularity, there will likely be regulation provided by the CRSC, but is probable that this will not affect the practice in a negative way.
How can I trade binary options in China?
You need to open an account with either a Chinese or offshore brokerage. In recent years, many foreign banks are now operating in China which provides an easy earnings on the internet — $1000 for 1 day. process for binary options trading with foreign brokerages.
Best Brokers in China.
Anyoption proves to be the best binary options broker for Chinese investors. It is the only brokerage offering their trading platform and information in Chinese.
This article has attempted to shine light on binary options trading in China. We have established that China is a massive economic power with lots of potential in binary options trading. With the lack of regulation on both brokers and investors in China, we should see an increase in the binary options market here. If you are a Chinese citizen and wish to open an account to trade binary options, there should be nothing holding you back.