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Binary options are now an integral part of the financial trading industry. Despite the fact that this form of online trading was only invented in 2008 it has already attracted an extremely large following and trader base. A very large number of people are these days trading binary options in order to generate side revenue for themselves.

However, this industry is still relatively new and as such many people still have no idea what the future will bring when it comes to options trading. Due to the fact that this business is still new, some people are not sure if it will pass the test of times and remain a viable form of investment in the future as well.

In this article we’ll try to describe the future of the binary options trading business. We believe that the binary trading industry will continue to grow considerably in the near future, becoming one of the most popular forms of online trading in a few years.


2013 Forecast

First, let’s talk about the year 2013. Various experts have said at the beginning of the year that by the end of 2013 the binary options business will be about 4 times as large as it was during January 2013. Looking at the trends, this forecast appears to becoming a reality.

This is achieved despite recent setbacks such as the Cypriot financial crisis that affected multiple options trading companies located in Cyprus as well as the recent decision of US authorities to crack down on certain financial trading brokers such as Banc de Binary.

In 2013, binary options were stronger than ever. 2013 will most likely turn out to be the year with the biggest growth in the financial investing business, even though it will most likely turn out to be one of the years with the most setbacks as well.

Next Few Years Forecast

This trend is expected to continue during the next few years as well. Observers think that the binary business will also continue to substantially grow during the next few years. This growth will be fueled by new technological innovations as well as various countries’ decision to officially regulate financial investing.

Mobile and tablet trading on the rise

Pretty much every expert believes that during the next few years the financial investing business would transition from a desktop based trading model to a mobile-based trading model. According to experts, in a few years the majority of the online trading contracts purchased will be from mobile devices.

Even today there are many brokers that already offer mobile trading applications for various devices such as smartphones and tablets. In the future, the availability of such an app will be indispensable from any serious binary options broker.

Overall Future of the Binary Options Business

We believe that the future of the online investing business is bright. However, we also think that in the near future the binary trading industry will completely change and transform itself. Brokers will be forced to constantly implement new features and introduce innovation in order to survive.

This will result in completely new kinds of services, better payout rates, and larger bonuses and most importantly in a cleaner and safer options trading business. In a few years, the binary business will be as large and as safe as the forex trading business.

Payout rates

One significant change that will during the next few years take place in the financial betting business is the increase in payout rates. At this moment the average industry wide payout rate is around 80%-85%. Due to increased competition between brokers this is expected to reach a rate of around 95%.

What this means is that in the future traders will be able to earn considerably more money than what they are earning today.

Expiration times

In the future, expiration times are also expected to become more flexible than they are today. Right now, most expiry times are around 1 minute to 1 hour. This means that right now binary trading is actually more close to sports betting than to real investing.

In the future, expiration times are expected to become much longer than today, from a few minutes to even up to multiple hours or days. This will give the binary options trading business a new strategic depth since longer expiration times will allow people to use advanced strategies and rely less on luck.

Bonuses

Bonuses are not new in binary trading. Most brokers these days offer so-called first deposit bonuses in order to determine traders to register and make a real money deposit. At this moment the standard deposit bonus in the business is at around 50% of the first deposit.

However, there are already a number of brokers these days that go even further than this and offer bonuses of 100% of the first deposit. In a few years or perhaps even sooner, most, if not all brokers will introduce the 100% first deposit model in order to maintain a competitive advantage.

This in turn will result in some other brokers going even further and introduce even larger bonuses such as 150% as well as 200% of the first deposit. This would be nothing unusual considering that something like this already took place in other businesses such as Forex.

Future Legal Climate for Binary Options

It’s not a secret that right now only a limited number of countries are regulating financial betting. However, no countries are actually banning options trading, meaning that at this moment they are legal in every country on the planet.

While they are legal, brokers basically have a free for all at this moment since they don’t have to follow any rules and safety standards since there are no laws of this kind enacted yet. However, this is expected to change in the near future after some countries will officially legalize binary options.

Future laws in the USA

Binary trading is at this moment officially legal in the United States. However, right now only the broker NADEX has a US license. This is because US laws are created with the purpose of favoring large and established companies at the expense of smaller companies.

This is why NADEX is the only company that is licensed in the US. Unless lawmakers won’t relax their regulations and implement more fair rules that will allow smaller companies to acquire a license, NADEX will remain the only company licensed for binary options in the country.

Future laws in Europe and elsewhere

However, the future is much brighter in other jurisdictions such as Europe. At this moment, binary options are regulated in three European countries which are Cyprus the United Kingdom and Italy. More countries are expected to follow in the future.

The great thing about laws in Europe is the fact that they were not constructed in the way to favor companies that can pay more money to the government, like it’s the case in the United States. In Europe, any broker that can prove to offer safe and fair services will be granted a license.

The same is also happening in other places as well, such as Japan, South Africa and Australia, countries that are planning to implement their own financial trading laws in the near future.

Conclusions

Based on the above, we believe that the binary trading business has a bright future ahead. In the near future, traders will have the possibility to experience new services and features such as advanced mobile capabilities, larger payouts, better bonuses and an overall safer environment.

Likewise, it’s expected that the binary business will become much safer and fairer in the future due to the fact that more and more countries seem to be interested in officially regulating and legalizing this form of online trading. So, stay tuned because the future of binary options is expected to be awesome.

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