Is Binary Options Legal in South Africa?
Yes, binary options trading is at this moment legal in South Africa. This is because there is no law that states that it is illegal. In fact, at this moment there is actually no law at all that refers to online investing. This means that traders can do what they want in this regard.
They can register at binary options brokers that accept South African traders, deposit real money and withdraw the money they have won. This is 100% perfectly legal and safe to do. There will be no legal consequences at all if traders trade at options brokers.
However, the South African binary options market is not regulated. This means that companies located in the country are not allowed to offer financial trading services. A company cannot offer services that are not officially recognized in a country (contrary to people who are allowed to do what they want).
As such, at this moment there are no genuine South African binary options brokers. Fortunately, there are multiple companies located outside of the country, which are able to access the South African market. These companies are legally allowed to offer options trading services to clients in the country.
Offshore brokers are allowed to access the market
As explained above, binary options traders living in South Africa will at this moment have to register and trade at offshore brokers. This is the only legal way of investing in financial assets in South Africa until the country will regulate online financial betting.
At this moment there are many financial service providers located on the market. Most of them operate from Europe or other jurisdictions. It however matters a lot what kind of brokers traders choose to register at. Not all brokers are safe.
Are offshore brokers safe?
This depends what kind of brokers we are talking about. Some binary options brokers that accept South African traders have a valid license issued in a reputable jurisdiction, however there are also brokers that do not have any licenses of any kind.
Obviously those that do not have any licenses are not safe and cannot be trusted. Usually there is a very good reason why a broker doesn’t have a license. Most of the time this is because the broker didn’t even apply because then it would have not been able to continue to scam traders.
But it also matters what kind of license a broker has. The most reliable licenses are those issued in Europe. At this moment Europe and European countries are the jurisdictions with the strictest online investing trading laws and regulations.
It doesn’t really matter what European Union country has issued a license. All EU countries that offer financial service provider licenses have the same laws because they are forced by the European Union to harmonize their legislations.
A binary broker that has multiple European licenses including a United Kingdom license is 24Option. 24Option is also one of the very best brokers when it comes to payout rates and easiness to withdraw earning. It does accept traders from South Africa.
Trade at European binary options brokers
So, if you are a financial investor from SA then you should always register and trade at brokers licensed in Europe. These are the only legal SA brokers available at this moment. All other kinds of brokers are most likely fraudulent.
Finding the Best South African Binary Options Brokers
So, now you know what kind of binary options brokers are legal in South Africa and which ones should be avoided. However, the fact that a broker is legal does not yet mean that it also offers high quality services. Below you’ll find a list of criteria that determine the quality of a broker.
Availability of South African assets – If you are a South African then you will obviously enjoy trading financial assets involving South African assets such as the ZAR. We made sure to only list those brokers on this page that do offer the ZAR as trading asset.
Naturally, the listed brokers also have a large number of mainstream assets as well such as forex currency pairs, stocks, commodities and indices. A large asset portfolio can help you create advanced online investing winning strategies.
Multiple options types – If you are an advanced online investor then you will enjoy trading multiple advanced trading contract types such as one-touch contracts, boundary contracts and 60 seconds contracts. Even if you are not an advanced trader yet, you should still only register at a broker that does have these contracts.
High payout rates – This part is self-evident. You obviously want to register and deposit money at a broker that offers very high payout rates, preferably above 85%. The higher the payout rate is, the more money you will be making on contracts that are successful.
The brokers I have listed on this page all offer above the average payout rates. While most brokers offer payout rates of around 65%-75%, the brokers we listed on this page all offer payout rates above 80%. This is considered to be very high in the business.
Safe and secure payment methods – You will naturally want to deposit and withdraw money with safe payment processors at the registered brokers. For this reason we only listed South African binary options brokers that offer payment processors that are legal in SA as well.
Binary options bonuses – Some binary options brokers that accept South African traders also offer bonuses. Bonuses are free money rewards offered to new registrants for trading purposes. You will be able to use the bonus money in order to buy real money contracts and win real money profits.
Most brokers only have bonuses of around 25%, however, the brokers we listed here all offer much larger gifts of this kind. So, check out the listed brokers if you are convinced. We truly believe that these are the best legal South African binary options brokers available on the web today.
Additionally, you should also consider sticking around a little bit more on our website before you begin trading in order to check out the online trading educational material and articles we have created. These will help you trade financial assets more efficiently.