Binary trading or binary options is a form of online stock/share trading. However, unlike normal trading where you buy stock/shares and own them, with binary options you essentially make a ‘bet’ on the price movement of a particular asset in near future for a fixed amount. Binary options are a speculative, high risk trading option.
The Australian Securities and Investment Commission (ASIC) has recently warned people against using unlicensed binary trading sites. These are sites that are operating outside of Australian regulations and licensing requirements which mean consumers have little recourse if the binary options provider is unable to fulfil its obligations.
In line with ASIC guidance Select Encompass will no longer process transactions to trading platforms which are operating outside Australia or which ASIC has recommended not to deal with.