Trading binary options in the Kingdom of Vietnam

For UK investors, trading with binary options is a tax free form of investment with very fast results – minutes less than months or years. The word binary is used because there are only two possible outcomes – the trade is successful and the investor makes a significant profit (usually between 75% and 95%) – or the trade is unsuccessful and loses all of it. investment amount.

However, in 2018, European regulators banned the sale or promotion of binary and digital options to retail investors in the EEA. This includes the Kingdom of Vietnam. Only professional clients or professional accounts are currently allowed to trade binary with regulated companies. A professional trader must meet 2 of the following 3 criteria:

1. Open at least 10 ‘significant’ trades per quarter (brokers define ‘significant’ differently)
2. Own a portfolio or trading capital of €500k or more
3. 2 years of experience in the financial industry, or experience with complex trading instruments.

Unregulated companies may not comply with the new ESMA rules and will continue to accept UK merchants. This does not increase the risk for the trader and makes finding a reliable broker even more important. However, it is possible to find brokers regulated outside the EU that will accept EU traders and still be regulated by respected bodies.

So ‘binary’ (or ‘digital options’) is a high-risk form of investment, but that risk is offset by the potential for very high rewards with minimal wait times. Most brokers are regulated, providing consumers with the kind of protection they expect while using financial instruments of this type. Profits from binary trading are currently considered tax free by HMRC.

 

Top Brokers in the Kingdom of Vietnam 2020

 

What are binary options?

Binary option meaning – A binary option is a derivative instrument, which is traded on any asset or market. For example, stock prices (Twitter, AstraZeneca, etc.), indices (FTSE, DAX, Nikkei), commodity values (gold, crude oil) or exchange rates (EUR/USD, GBP/USD). Even cryptocurrencies like Bitcoin or Ethereum can be traded.

The main difference between traditional and binary stock brokerage transactions, is the clear definition of risk and reward before the trade is executed. An investor knows exactly how much to risk, and especially, also knows the exact value of any potential return. No calculator, formula or level of math is needed to work out profit and loss on binary options.

The structure of these transactions is what has led to the widely used terms of all or nothing , or cash or nothing .

The only decision for a trader is if the value of the underlying asset will increase or decrease. The degree of price change does not matter. The trader is purely speculating on whether the price will be higher or lower than the current price, at a particular time in the future.

Short-term price movements can be triggered by news stories or headlines, quarterly statistics, buyback rumors or even global security fears.

Trading binary options offers a Yes/No proposition. Although there are variations on High/Low options, this type of investment will always result in binary black and white, Yes / No, binary . As trades can be closed, exchanged or sold mid-trade, the payouts have absolute numbers of 0 and 100, and the price moves between as the market dictates – until closing.

Shelf life

Each binary option is offered with an expiration time. This is the point where the transaction will end. So price at expiration is one of the decisions that will determine whether an option is won or lost (in the way of money, or out of money in binary terms). This expiration can vary from just 30 seconds or 1 minute, (called ‘turbines’), to a full day (‘end of day’), even longer in some cases – up to whole year.

In general, however, binary options are used for short-term trading – usually less than 30 minutes (5 minutes is the most common). The longer maturities – and the fixed risk factor – make them useful tools for hedging or diversifying other holdings.

The payouts vary depending on the asset and the expiration time. The difference can be significant for traders looking to use binary options long term, needing to shop around to find the best payout for the asset class (or classes) they intend to trade.

 

 

Legal investment

Although binary trading is in a growth phase, it is still a relatively unknown product. Over time, this is likely to change. As digital options (as they are also known) offer a very simple financial arrangement. They are a legitimate way to play the financial markets.

Binaries offer a clear trading choice, but they are also high risk/high reward. However, there is no leveraged exposure with binary trading, so the risk and reward ratio is also very simple to manage.

Are binary options safe?

Binary options suffer from a poor reputation. This is essentially a result of dishonest and irresponsible marketing and cybercrime, rather than an issue with the product itself. With tighter regulation and better understanding by the public, these options can – and will – move into the financial mainstream. That’s where they originally grew.

While FCA regulated agents and businesses may still have their flaws and faults, they are not scammers. The angry emails we receive are focused entirely on unregulated brokers, promising very easy money, or a route to making a lot of money fast. Read our section on avoiding broker scams below.

Advantages of binary trading

Many of the benefits of using binaries are related or linked. Here we list some of the benefits of using this form of investment – not only for the retail investor, but also for market makers or brokers:

Risk Management

Risk management when trading binary options is clear. The amount of the trade is the full amount at risk. This clarifies the risk not only for the trader, but also for the broker. Their pricing model reflects an accurate knowledge of their liability.

Transaction fees and spreads

The certainty of risk provides a solid foundation for brokers to work within and manage. This results in a low trade feed, tighter spreads and higher payouts. To further protect themselves, they can use a liquidity provider or hedge their positions. The expensive brokerage costs of clearing become unnecessary.

Take advantage

Leverage, or equipment, is not usually available with binary trading. This benefits the broker again, as it means that all trades must be fully funded. In other words, no trader can default to a trade. With leverage, if things go wrong, there is a real risk of the broker not getting paid. This is a big difference from spot or staking forex trading.

Selection of traders

Layers of complexity can be added to the standard flat payment option. From a ladder option, to boundary transactions or more advanced ‘nesting’ options to generate ‘strange chains’ and more. – the binaries can be used in many different ways.

A binary trading offers the greatest degree of flexibility. They even provide a mechanism to speculate on a flat market, arbitrage, or to look at the trading volume of the underlying asset.

Robots and automated trading

Automated trading robots (‘bots’) usually rely on signals and algorithms triggered by price charts. Again, these robots attract many unwanted operators, and the automated nature of the transactions increases the risk even further. New traders should be especially careful. A great deal of ‘diligence’ is required when trying to find the right robot service.

Another approach is for traders to build their own robots using their own entry points. A large number of brokers now offer traders the ability to put their own trading robots or bots against each other, using simple tools. These hacks allow to combine technical analysis settings, such as moving averages, bollinger bands, or RSI/MFI patterns, and then open trades when those criteria are met. It has made binary options ‘pro’ robotics available to everyone.

Top Robot

 

Scam

Binary trading in itself is legal, and not a scam. However, there are brokers and signal providers that are not trustworthy and operate deceptively or fraudulently.

It is important not to write down the concept of binary trading, which is purely based on dishonest brokers. Scammers continue to drag down images of this form of trading. Regulators and rule makers are slowly starting to get to grips with these practices and the industry is being cleaned up. If you would like to make a complaint about an operator to our watchdog, please let us know through the Contact Us page.

Being aware of the above methods will help those new to binary trading avoid brands with less liability. Improved regulation and more awareness should hopefully reduce these types of complaints. This in turn can allow the binary to move forward.

Became a victim? MyChargeBack.com services can help.

Learn more about binary options scams

The recent binary ban in the EU is unwise, and could ultimately push more traders into scams.

 

 

Trading Strategy

Our strategy pages include over 20 known systems, drawn from a wide range of forum and club conversations, plus expert advice and advice. From high-risk Martingale, to complex systems like Rainbow. We also cover more expert audience, like forex, technical analysis, best price action indicators, trading signals and winning strategies. All of this is aimed at helping you gain an edge and win.

Learn more about binary options strategy

Signal

The signal is an alert, sent to the trader. They are designed as a trading tool, helping traders to spot opportunities. They can be communicated through a variety of methods – email, SMS or from a website or direct signal group. Much of the irresponsible marketing associated with binary scams is associated with signals – or automated trading robots that use them. There are some very good vendors out there too. However, in general, learning how to trade binary is a safer route than using signals to make up for a lack of trading knowledge.

Do signal work?

Sometimes, but rarely in isolation. Some providers offer an education combination in addition to signals, and that represents a good combination. Traders must be able to fully evaluate signals before they can judge their quality. We also highlight some of the best providers on the signals page.

Learn more about binary options signals

Brokers and Reviews

A binary option can be used in a number of ways, and across a huge range of commodities and markets. This means that finding the best dealer, best account or best trading platform, really depends on the needs of each individual investor.

For example, some brokers may focus on foreign exchange (foreign exchange) and trade in Japanese Yen, Euro or Vietnamese Pound. Others may be strong in commodities and offer only a handful of forex markets. Similarly, returns (or payouts) can vary across asset classes, and with these varying by as much as 25%, it’s easy to see how important making the right choice is.

List and compare all binary options brokers

Payment method

White label platform providers such as SpotOption, Tradologic or TechFin financial also indicate what products the homepage can offer, so an exclusive broker with a bespoke design may be preferable. The payment method is worth thinking about – if traders want to use Skrill, Paypal, Neteller or wire transfer, they need to check out a broker that offers that.

Trading Application

Mobile trading applications offered by binary brokers or dealers can also vary in quality. Some programs are specific for features of specific models, like iPad or iPhone. Others ensure cross-platform compatibility, catering to Android, blackberry and windows tablets and devices. Some traders may have the right need for any handheld application, others less so.

Trade size limits may dictate certain investors to or from certain trading accounts. Some brokers offer minimum trades of just £1, while others cater to investors willing to invest £200,000 in a single trade. Therefore, each investor needs to consider his or her own trading style before deciding to open an account. Even working with the ‘cheapest’ broker is not as easy as one might think.

How to compare the best trading platforms

Our comparison table provides a quick summary of the key points when comparing brokers. Our detailed review then allows potential new users to evaluate a finer score that can confirm their decision. Below is a list of some important comparison points for brokers;

• Payout
• Over the counter or exchange trading options
• Minimum Deposit (Plus Deposit and Withdrawal Methods)
• Minimum trade / Maximum trade
• Exchanges
• Food event news
• List of Assets (Extended list may include ETFs, bonds, and trusts)
• Chart / Charting Tools (Chart Types, Forecasting Tools)
• Available shelf life
• Regulations (FCA, CySec, CFTC, etc.)
• Range of options available (Boundary, Ladder, High Productivity, etc.)
• Welcome Bonus
• Customer Complaints/Feedback
• Account types and benefits (VIP, Basic, Platinum)
• Plugins and Integrations. (Example: MT4 / MetaTrader4 / MetaTrader 5)
• Promotion of Privileges, Contests, Leaderboards or Contest Prizes

Some points may be more important to certain traders than others. So finding the best of the users will be an individual choice for each new client. A speculator holding a position in the monetary policy of the Bank of Vietnam or the ECB may be best served by a broker, while one who wants to bet on the growth of Apple, Facebook shares or Vodafone may want otherwise.

Demo account

Most of the top brokers offer demo trading accounts. This allows new customers to try the services on offer. They can see if the market range and investment size are right for them and proceed with a funded account only when they are satisfied that the right trading account has been found.

Brokers who offer real or virtual balances, have confidence in their trading platform. They are willing to let new traders see it, and try it out, risk-free. The review for each broker will include whether or not they offer a demo in the Master Key Details section.

top 3 demo accounts

 

Trial Sites and Apps

The majority of these demo accounts will work on both the website and the mobile app. Both systems can be tested before depositing. The best demo accounts have no time limits and allow traders to ‘top up’ the balance if required. This account type allows users not only to try out the broker, but also to use a demo account to try out new trading strategies or even back-test a strategy based on past financial data. All without risking any cash or your own wealth.

Comment

Our broker reviews are written after genuine trading on each platform, brand or white label. They cover all aspects of each vendor – good or bad.

The reliability of reviews is important to us. So they are checked and updated regularly and the feedback we get is part of the overall rating. For binary trading to move into the financial mainstream, comparison services need to be open, honest and transparent – and that’s what we strive and deliver in broker reviews.

Regulation

Binary brokers are regulated through a number of agencies. CySec regulates the majority of brokers based in Cyprus and Israel. Operators with equipment in Vietnam will need a license from the UK Gambling Commission (the concept was initially classified as ‘staking’ in the financial markets – a view that is now changing) . European regulations, however, allow suppliers to serve Vietnamese customers. The MiFID Law II allows ‘licensing’ of this regulatory power.

However, in the UK, there is a stronger layer of consumer protection if the broker is regulated by the Financial Conduct Authority (FCA). Some companies also register with the FCA – but this is not the same as regulation. This is a particularly important sign.

In the US, the CFTC only licenses two brokers to operate there – Nadex and CBOE. In Australia, ASIC (Australian Securities and Investments Commission) oversees brokerage firms. Some companies are also regulated by the Malta Gaming Authority or the Isle of Man GSC.

In Europe, an organization called ESMA (European Securities and Markets Authority) also proposes legal or regulatory guidelines that the majority of regulators in the country adhere to. Recently, they suggested that binary options should be banned for retail investors – although this policy is rather ill-advised and outdated. Such changes will punish honest regulated brokers, leaving dishonest scams to continue operating.

Benefits of using a regulated broker

Regulated brokers offer a greater degree of consumer confidence than unregulated firms. They are obligated to keep traders’ funds in separate accounts and not in corporate accounts. They must provide a dispute process for their clients and treat them fairly and fairly. In addition, regulated companies can only market responsibly and within authorized trading zones. Responsible brokers welcome regulation as a way to increase consumer confidence.

 

 

Copy trade

Copy trading is a growing investment sector. It allows users to copy other people’s transactions. Copying determines how much to invest and whether to copy some or all of the trades opened by a particular trader or trader.

Copied traders also benefit, as the broker will often reward these clients through commissions, or increase sales and profits based on the volume of trades they generate.

Copy trading (or ‘social trading’) is a useful function for those who do not have the time or knowledge to trade on their own. When it comes to copying, however, the time and effort spent finding the right traders to follow pays dividends. Social trading is similar, but geared more towards sharing social media style information.

Learn more about social trading and copying

History

A brief history: The concept of binary options, or ‘digital’, has been around for many years. They were initially only available to large-scale investors – institutions, wealthy individuals, and funds. Options were offered ‘over the counter’. However, in 2008, the US Securities and Exchange Commission allowed these fixed return options to be traded through an exchange.

This allows the Chicago Board of Options Exchange (CBOE) and the American Stock Exchange to offer binary trading on certain underlying assets. Initially, the asset range was limited, as was the choice of options. Nadex also started offering exchange-traded options (suitable for buyers and sellers) in the US as the market evolved.

Demand for digital transactions grows

However, as popularity and trade increased, the assets traded beyond Forex and stocks and option types also expanded. Rapid developments in software and the globalization of trading have led to an explosion in these ‘digital’ options – and the trend of expansion continues.

The barrier to entry for potential market makers or brokers is much lower in the binary sector. This, coupled with the boom in internet trading during the same period, has caused regulation to lag behind the industry.

However, the growth of binary is not likely to slow down. Simplicity, coupled with the clarity of risk, allows most people to view a particular asset but manage their risk much more easily than contracts for difference or to buy stocks.

Education

To learn binary options, traders have a lot of opportunities and courses. Every trader is different, results will vary from different learning methods. Some may prefer a pdf or spreadsheet on the subject, while others will learn the most from diving and gain some experience. Here is a selection of learning methods:

• Conferences and demonstrations
• E-book / Manual / Book
• Video and Youtube Binary Options Guide
• Do it on a demo account
• Knowledge and FAQ page

Learn binary trading through tutorials

Brokers are willing to give traders the confidence to start trading – and many offer some or all of the above for potential new clients to learn about binary options. stool, usually for free. Some tools are only offered when a trader is registered – this is purely so the broker has some contact details for things like trading seminars or web-based demos.

Conferences and demonstrations

A great way to learn binary options is through a demonstration or webinar. Some brokers offer weekly seminars, some in a variety of languages. They provide ‘walking’ style demonstrations that can be really helpful.

Other companies will offer a training course, but usually require a deposit in advance. This training will follow the basic How-to-Instruction format, but can then be quickly moved on to more advanced subjects as required.

E-book

Some traders benefit from downloading an e-book guide and learning about binary options at their own pace. In their Education centers, brokers often provide a great ‘tutorial’ for traders looking to learn the basics. A note of caution is that each broker will focus on their own trading platform and quote for some explanations and screenshots.

Brokers want new traders to use their service. The good news is that while the interface of some trading platforms will be different, the basic functions are the same – so knowledge is easily transferable.

Several independent books have been written, including the ‘popular for dummies’ series. We list the best here.

Video

Video tutorials are the most common method of learning. Some brokers make more effort than others, and viewers may also be presented with the same video at different brokers – only the voices have changed! However, there are some very good video sets available and they are viewable without registration. We have embedded a video from IQ Option showcasing their online binary options trading and trading platform. They offer a full range of videos on their website.

Knowledge Base & FAQ

Most brokers will offer an education area or “knowledge base”, but the quality varies. Companies are constantly updating their training catalogs, so there is no clear winner in this category.

Brokers want to encourage trading, so they make it easy for traders to learn the basics. More advanced information is hard to come by from brokers – but hopefully the technical and strategic analysis pages on this site help.

Here are some of the questions and topics we are asked about most often regarding online binary trading. Hopefully these short paragraphs can provide an answer – but if not, there are several links to more in-depth articles explaining each topic area.

Types of Binary Trade

• The most common type of binary option is the simple up/down or the high/low. This is a forecast of the direction of price movement. At the time the option expires, will the price go up or down? Also called the classic or standard option.
• A slight variation for up/down trading is the over/under option. It follows exactly the same principal, but the target price is a preset, not the current price. All the same logic applies the price up or down based on that value and where it will expire – but the starting point is somewhere above or below the actual market at the time.
• Touch / No Touch is a slightly more complicated scenario. Here, a value or price is set (sometimes by the investor himself if their broker offers a feature such as an ‘Option Builder’). If the real world price touches or crosses that barrier, the ‘touch’ option will pay out. If the price never touches the barrier price, the ‘No Touch’ will pay out and any ‘Touch’ bets will be lost. Also named “One Touch” on occasion.
• In/Out, ‘Range’ or ‘Boundary’ requires two barriers to be placed. One is higher, and the other is lower. Then the binary option is whether the price is within ‘(or between) these two boundaries. The ‘out’ option will be activated and thus pay out, if the price ends outside either or the barriers are set.
• Ladder options . They work in a similar way to ‘over/under’ options, but the payouts differ based on how far the target price is from the current value. There is a wide range of levels and different payouts for each level. These are the vibration scales of the ladder. Payout for ladder options can be up to 1000% if the required price movement is large enough.
• Pairs are a type of trading where two related assets are matched (e.g. Gold and Silver) and traders look at which assets increase or decrease the most.</li >

Set call preferences and preferences

Put and Call Options are simply terms given to buy or sell an option. If a trader believes an asset will increase in value, they open a call. If they expect the value to drop, they place a trade.

Some binary options brokers change their trading buttons every few seconds, from Call and Put, Down and Up to avoid confusion. Others distribute with full put and call terms, using arrows instead. The symbols are always clear so that mistakes are not made.

Question

How to place a binary trade

 

 

Steps to open a binary trade;

1. Identify the underlying asset to trade, such as gold price, Facebook stock price, or GBP/USD rate
2. Set an expiration time (Optional time to end) and d based on the size of the trade or investment
3. Decide if the value will increase or decrease (Call or Put)

How much can be won?

In general, binary options pay in the 75% to 95% range. This ratio is clarified before the transaction is made. Unlike the price above or below the entry price, the closing price doesn’t affect the magnitude of the payout .

As binary trading becomes more sophisticated, the amount that can be won is also growing. Some brokers now offer trades that do depends on the size of any price movement. There are also transaction types (mentioned below) where payouts can reach up to 400%, 500% or even 1000%.

Are binary options gambling?

It depends entirely on the trader’s attitude. If a trader adopts no strategy or research, any investment is likely to depend on luck and the odds against them. On the other hand, a trader who makes thoughtful trades can ensure they have done all they can to avoid depending on luck.

Is it Halal Binary Options?

Interest, or riba, is prohibited under Shariah law. Binary options, even those considered long-term, are not subject to rollovers or rollover fees. Many brokers have developed Islamic trading accounts that adhere to the Muslim guidelines (providing instant trade execution and no interest). But traders need to be careful before deciding if binary options trading is legal, halal or haram. The answer may not be clear. Traders can use binaries without a plan or strategy – bet effectively or use them for gambling. This would be prohibited for most Muslims. For this reason, we cannot explicitly categorize transactions as binary or haram. It will come down to the individual.

Binary options trading guide:

• Broker
• Demo account
• Binary trading strategy
• Fit Deposits, No Bonuses Bonuses and Signup Offers
• Signal
• Robots and Auto Traders