Binary Options Mauritius
New and innovative ways of turning profit are popping up like daises, and with the arrival of various technologies those options have only grown in their number.
Trade, as such, has existed form thousands of years, so that this ancient practice should be dressed into new robes hardly seems surprising.
One of the ways new age has accommodated this is via binary options trading which stormed the global market the moment it appeared in 2008.
Ever since, the number of traders all around the world continues to grow daily.
Due to this, we have decided to compile a comprehensive article which will not only point out the basics included in binary options trading but will also offer some helpful tips for Mauritius traders who are considering taking advantage of this exciting, new way of trading which has, at the long last, opened a way for regular people to become a part of the large trading market.
Back to the History
Ever since binary options trading became available to a wide public, the global financial market changed forever. Up until then only those who were either regulated, large traders or individuals with a fairly large net worth could trade binary options via over-the-counter market.
All that changed in 2008 when Us Securities and Exchange Commission made trading binary options legal and Chicago Board of Exchange, shortly after that, started to offer binary options trading for public trading.
The popularity of binary options and the number of people trading binary options hasn’t stopped growing ever since and the reasons for that though simple, are multifold.
Binary Options Trading – how does it all work?
One of the most defining features of binary options trading is most certainly the simplicity that is behind it all.
In binary options trading traders are faced with only two possible outcomes – the price of the asset is either going up or it is falling down.
And while this is simple enough, there is, naturally, a bit more to it and we shall strive to present as full a picture to Mauritius traders.
Another very interesting but also appealing side of binary options trading is the abundance of flexibility it brings along. And that feature is wide-spread since it refers to various trading options, expiry times, strategies one can use, several types of trading accounts as well as the fact that traders are not really limited as to where they can execute the trade from.
Meaning, traders can do it either in the comfort of their home using a computer or laptop or, optionally, they can do it via their mobile devices or tablets since binary options brokers also offer a mobile trading app, a tool we shall tackle in detail later on in the course of this article.
Another interesting fact about binary options trading concerns the issue of investment and the amount of money needed to start trading, which is very reasonable and attainable for a large majority of people. That also explains such a global appeal of binary options.
The amount needed for a minimum deposit is usually within the range of $200-$300, though, interested traders from Mauritius can also find plenty of brokers whose minimum deposit is much lower than that.
The minimum amount for trading is another thing which does vary considerably among the brokers, but is not surprising to find brokers with whom the starting amount is just $1.
But, for some, the most attractive point of binary options trading lies within the amount of time needed to understand how the trading functions.
For years, only those with a hefty amount of money in their accounts, considerable business knowledge and numerous valuable connections could participate on the market and make successful trades.
Binary options trading changed that, cutting the time considerably and allowing ordinary people within the province once reserved for a very limited number of people.
Naturally, the more information Mauritian traders gather and the more time they spend educating themselves about binary options trading the bigger the possibility to make a profit. But that too is much more user-friendly and available than ever before since binary options trading is done online. Hence, the information they will need is also accessible online.
The best way to start and educate oneself about binary options trading and what it entails is to look around broker review sites such as this one where traders can get a lot of interesting and useful information all in one place.
In the following sections of this article Mauritian traders can find info on trading options, expiry times, strategies and many other interesting aspects of trading binary options and this info can be used to get better acquainted with the whole process.
Trading Options Available to Traders in Mauritius
Trading options, as one would expect, is one of the most important aspect of trading in general, but especially binary options trading.
While trading options do vary from broker to broker and it would be almost impossible to find all the options we shall list below with only one broker.
Therefore, we will give you an overview and brief explanations on options which are most frequently found on binary options trading platforms.
Interested Mauritius traders should take time to explore these options so that they will be able to select those they find most interesting for trading.
- Pair Options
- 60 Seconds
- Boundary Options
- One Touch
- No Touch
- Range Options
- Long Term
The most basic trading option, High/Low, is often the one used by those traders which are only starting to execute binary options trading. Since it is simple and easy to understand and use, traders simply need to choose one of two available options – up or down. That means, that traders need to make an educated guess of whether the price of an asset will either rise or fall.
60 Seconds is another popular options traders use, because of its short trading period. This allows traders to execute multiple traders without waiting for a long time.
One Touch, maybe a bit more convenient for traders who have been in binary options traders for longer, this option is based on a very precise price prediction. That means that in order to make profit from the trade, the trader has to pin-point the exact price of the asset being traded.
In a sense like One Touch, No Touch is focused on the fact that an underling asset trader is using in a trade cannot touch the specific price in the time set for the trade.
Pairs Options is another frequently used option in binary trading, in which traders have to make an educated guess about the performance of two underlying assets in comparison to price direction of one of the assets in the pair.
Long Term options is the one where traders trade underlying assets for a longer periods of time which makes it a bit easier to predict what will happen with the direction of the price and hence, carries a smaller amount of risk involved.
The point of the matter is, the more traders get familiar with the trading options and the more time they take to understand the guiding principle of each options, they will increase their chances of making a profit.
Not all options will be interesting for all traders which is why it is important to find those which will accommodate specific trading styles all traders develop over time.
Selection of Expiry Times Available to Mauritius Traders
Those Mauritius traders who are interesting in doing binary options trading also have to pay attentions to expiry times.
As one would expect, the larger the selection of expiry times the more traders can experiment with. Quick look around any of the numerous broker platforms available for trading will point that there are three basic periods: long, medium and short.
Mostly, short expiry times go from just 15 seconds to 30 min with 30 sec, 60 sec, 2 min,5 min and 15 min being also available.
With medium expiry times the range starts with 1h, 10h, 24h and usually finishes with the End of the Day expiry time.
Lastly, long expiry times go from End of the Week, End of the Month, 30 Days, 150 Days and End of the Year.
While it is easier to predict what will happen with the asset price in the longer period of time, short expiry periods have their benefits and traders simply need to find the option which works best for them since there isn’t a universal answer.
Assets Mauritius Traders Can Trade in Binary Options
Trading assets which can be used in binary options trading include:
Essentially, those are actually categories and interested Mauritians can check the asset index available with every binary options broker to see which underlying assets (specific assets being traded) are available with a specific broker.
The number of underlying assets, again dependent on the specific broker in question, can go all the way up to 200 which is a great range to choose from.
Mauritian traders interested in binary options can read a short explanation of the most features marking each asset further below.
Silver, gold, corn, coffee, oil – all these goods have been around for thousands of years and people have been trading them for just as long.
These assets are fairly stable and are dependent on the weather conditions, political situations at hand and demographics. Bearing that in mind, it is wise to follow the news concerning these so that the traders have a better understanding of what might happen to the price.
Not very prone to sudden price changes, indices might be somewhat difficult to predict as far as the price direction is concerned.
S&P 500, Nasdaq, FTSE 100, Dow Jones are among indices Mauritius trades can choose from.
A very well-known asset in the trading market, stocks are traded more by professional traders.
Coca Cola, Microsoft, Audi, Toyota, Google, Apple are among the stocks available with binary options brokers. Traders interested in trading stocks are advised to keep up with the news and information available about stocks. Considering how well-known loads of stocks are, there is a lot of information available which makes it easier to follow.
Still the most popular asset with binary options traders (and this has been so since the very beginning of binary options trading), the simplicity which marks trading currency pairs makes it easy to understand why that is so.
There are plenty currency pairs to choose so with every broker, but in most cases traders like to trade well known pairs like GBP/USD or EUR/GBP.
Binary Options Strategies
Every trading venture has its strategies and binary options trading is not an exception to this rule. In this article we shall briefly touch upon 3 important and frequently used binary options strategies.
While this strategy is more often than not used by those binary options traders who have more experience, it can be used even by those who are relatively new.
The guiding principle of the reversal strategy is that the asset, which is moving in a certain direction (be it up or down) and then reaching its peak is not very likely to stay so for a prolonged period of time. Instead, the asset will return very close to its original position or precisely to its original starting point. The trick wit this strategy is to know when the asset has reached its peak and then to determine when it will head toward the more stable value.
Often called Bullish/Bearish strategy, this is a strategy which is firmly situated around the trend line which has to be monitored sop that the trader can determine which way the tread is heading – downwards, upward or if it is changeable.
According to that date, trader will make his/her decision on which option to use – PUT, CALL or NO TOUCH.
The basis of this popular strategy, it involves candle bars and their length. Pinocchio bar is the one which has a very short body and a rather long wick. And, like the proverbial Pinocchio, the longer the wick (nose) the more deceitful the information is. Because the long wick hints at the direction the price of the asset in question is heading towards but, at the same time, this actually means that the prospect that the price will soon turn and head in the opposite direction is a realistic possibility.
Any of these strategies can be used by Mauritius traders as an additional help when they try to make and educated guess concerning the funds they are willing to trade, as well as which underlying asset to trade in combination with a specific trading option and expiry time.
Binary Options Accounts
As mentioned at the very beginning of this article, binary options brokers offer several different types of trading accounts. This is done in order to accommodate various traders across the globe so Mauritians wishing to trade binary options will find an interesting selections of account too.
Accounts binary options brokers offer vary in the amount of money needed as a minimum deposit to open each account and, according to that, it also offers various different features and possibilities.
Mauritian traders can find details about account types on brokers’ platforms and find the one which suits their needs the most. The number of accounts on offer, naturally, varies depending on the broker. But, traders can find from three up to even seven different accounts.
Lately, given to the popularity of binary options trading, brokers also offer Islamic accounts which are designed so as to respect the Sharia law so Muslim traders can also become binary options traders.
Binary Options Trading Tools
Trading tools can and are a vast help in binary options trading and bearing in mind that this is an online business venture designing efficient tools is a great advantage.
The two tools/features we shall tackle here refer to the demo account and the mobile trading app.
Mobile Trading App
The world of 21st century is not one which tolerates waste of time, nor does it easily forgive wasted opportunities.
Binary options brokers, well aware of that, have come up with a solution for that problem which allows binary options trader to benefit from trades even when they are on the go instead of home, behind their computers.
Since iOS and Android devices are among those most commonly used, large number of brokers have made mobile trading apps for those devices available on their platform.
Interested Mauritians can take a look around the broker platform and see if the broker of their choice is offering mobile trading app. In most cases, mobile platforms are very similar to the one the broker is using when traders trade using their computers and they are designed to be simple, easy to navigate and user friendly.
In any case, using a mobile app to execute trading has the 2 in 1 appeal – saves time and makes use of all the trading opportunities available at any given time.
For the reasons of pedantry, one could say that demo account is not precisely a trading tool. However, weather we wish to call it a tool or a feature, the fact remains that making use of the demo account can be very useful. Though, there is one drawback potential Mauritius traders might face, and that is that not all binary options brokers offer this on their platform. What traders can do is to contact customer support and inquire if this is a possibility with a broker they are interested in or not.
The main function of the demo account is to allow traders to “test the waters” a bit before they actually set off and start to trade. Demo account replicates the real account and gives traders the opportunity to test various trading options and expiry times with one significant difference – instead of using real funds traders use virtual ones.
That means that they are given a safe environment where the loss of funds is not possible but they still get to experience what it feels like to be trading binary options.
Demo accounts are usually made available to registered traders for a specific period of time in which traders can test it and practice after which they will start trading binary options with a real account and real funds.
Educational Materials/Academy Section
While it is always a good idea to browse the Internet and seek god, solid information that can be helpful it is also advisable to make use of the educational materials/academy section on the broker platforms.
The section was created in order to help traders and get them familiar with specific aspects of binary trading. A specific amount of educational materials is always free to browse and use while some other sections, especially advanced lessons, are usually available to registered traders or to those holding a particular trading account.
But, the fact is that tutorials, e-books, demo tours, and all the other materials made available by the broker is there to be studied and used by the traders in order to turn this to their benefit.
Binary Options Bonuses
Binary options brokers always offer certain bonuses to their registered traders. What is important is to know which terms and conditions apply to each bonus and what do traders have to do in order to be able to eventually withdraw the bonus.
Now, bonus is here to be take or not by the trader, but prior to that traders should look in the terms & conditions section on the broker platform and read the conditions attached to the bonus being offered by the broker.
Some brokers, like Banc de Binary, have a separate section devoted to explaining particularities connected to the bonus and the conditions which have to be met in order for traders to use the bonus.
As various brokers have their own bonuses, giving specific conditions is not possible, which makes reading the broker details on their bonuses all the more important.
Payment Options and Procedures Mauritius
Payment options and procedures are of immense importance for both brokers but even more so for traders. Considering the fact that traders all around the world trade binary options varied payment methods are very important. Brokers, in general, offer plenty of methods which satisfy, more or less, traders’ needs.
Aside from the usual wire transfer, brokers also support all major credit or debit cards such as Visa, Maestro, Diners, MasterCard and, to some extent, American Express too.
E-wallets like Neteller, CashU, PayPal and Skrill are also listed as payment methods with loads of binary options brokers.
Visa, MasterCard, American Express and Amex are all available payment methods available in Mauritius and so is Neteller.
Mauritians who are interested in binary options trading can also contact broker customer support and ask further questions concerning payment methods, especially if there is a local payment method a trader would like to use but that option is not listed with the broker of their choice. Sometimes, there is a possibility to reach some agreement with the broker.
Another thing that Mauritian traders have to know is that the procedure with making deposits and requesting withdrawals does take a bit of time. Not so much when it comes to deposits, but withdrawal procedure is a bit more complex.
Firstly, brokers enforced the so called KYC policy (Know Your Client policy) which is there to protect both the broker as well as the trader since in enforcing this policy the possibility of fraud, identity theft or money laundering. In most cases that means that traders who wish to register and trade binary options need to submit certain documents: copy of a photo ID, copy of the Credit card used in trading and a proof of address (a utility bill would do, not older than 6 months).
Withdrawal request cannot be processed until the copy of these documents are not made available to the broker.
Also, the withdrawal process itself takes a bit of time. To process the request, and depending on the broker, several hours up to 3 days might be needed, with additional three to seven business days for the funds to reach the traders’ account.
Mauritian traders must study the instruction on payment methods, deposits and withdrawals which has to be available on broker trading platform since it is always possible that some segments might be and usually are, different from one broker to the next.
Binary Options Robots
Those Mauritian traders interested in binary options trading have probably seen the auto-trading binary options possibility. And, indeed, lately that has become all the rage among the binary options traders. Auto-trading binary options or Binary options robots can be a handy way for newbie Mauritians to start trading binary options.
In the first place, human input is really taken down to a minimum if it is needed at all.
This way of trading is based on receiving binary options trading signals from reputable, trustworthy brokers. In reality, binary options robots do all the work instead of traders which does allow for a more stress-free environment for traders themselves.
This, does not mean that risk is not involved, but in this way traders can have some time to observe the trading process and learn before they start to trade binary options manually.
Some research is needed, naturally, since there are some scam brokers on the market, but a some digging will soon point trader in the right direction. Using Binary Option Robot is a safe auto-trading option which Mauritian traders can use.
Types of Binary Options Brokers Available to Mauritian Traders
Types of brokers available to Mauritian traders can be slotted into several different categories and those are:
- Registered and non-registered binary options brokers
- Accepting and non-accepting US traders binary options brokers
- Various software binary options brokers use on trading platforms
Regulated Binary Options Brokers
When addressing the issue of regulated vs non-regulated binary options brokers the story is, well, binary.
Strictly speaking, it would be better to begin the journey of binary options trading with a regulated binary options broker. The reason for this is straightforward – regulated brokers respect the rules and regulations established by regulatory authorities such as CySEC (Cyprus), FMA in New Zealand or FSB in South Africa. Of course, there are plenty of other regulatory authorities strewn around world, but these are some of the well-known ones.
So, to pick a broker which is registered is recommendable but to sidestep a broker which has a good reputation simply because they are not registered is not a wise decision. Which is where research comes into the game plan again – browse the broker review sites which can give Mauritanian traders plenty of helpful info on various brokers.
Certainly, opting for big names in the binary options trading industry like 24option, IQ Option or Banc de Binary is a great choice but traders are free to roam around and find other reliable binary options brokers.
Accepting or Not Accepting US Traders
Due to the fact that United States has a somewhat different regulation when it comes to binary options trading, some brokers can accept traders from USA while some others are not.
This bears no consequence for traders from Mauritius but rather restricts the options when it comes to brokers for US traders.
Binary option brokers also differ in the sense of which trading software is used on their trading platform. And, naturally, there is plenty to choose from.
The already mentioned registered broker, 24option, uses TechFinancials software while broker Porter Finance uses Panda TS software which is also a frequent choice for the software used on trading platforms.
Names such as TradeSmarter, OSystems, TraderSoft, Leverate and HalloMarkets are other software used by binary options brokers on their platforms.
However, Mauritian traders can also encounter information on trading software which mentions – proprietary platform. This basically means that a binary options broker, instead of using a specific software, uses one which has been especially designed and developed for that particular broker.
IQ Option and StockPair are some of the binary options brokers which have developed their own proprietary trading platforms.
Mauritius Local Legislature
Binary options trading is legal across African continent so Mauritian traders shan’t have problems concerning that aspect.
However, countries, like the already mentioned USA, have different ways of classifying binary options trading so the best approach, since we are not experts when it comes to legislation, would be to enquire with the local authority body. That way Mauritian traders can get the best and most accurate info concerning this issue.
As we have already said, the best way to go into binary options treading is to do so with a registered broker and then, after traders gain more experience, they can opt to branch out and test other brokers who might or might not be registered.
Local Tax Laws Mauritius
The story of tax is rarely, if ever, a subject people enjoy discussing. Nevertheless, tax is a fact of life and when individuals make profit that law states that tax has to be paid.
Since we are not an authority when it comes to tax, nor awe experts, Mauritian traders concerned about the tax issue are best to turn to local professionals who work in this department.
The issue of tax can get a bit more complicated when it comes to binary options trading since every country has a different way of looking upon binary options and, since binary options happen online with brokers who have locations all over the world, even some international tax law might be applicable.
Security, no matter the circumstances, should never be taken lightly nor should that be something deserving only a cursory look. On the contrary, security is of utmost importance, especially when the subject is connected with financial transactions and sensitive date being imparted. Both those things are included in binary options trading.
For that reason, reliable binary options broker will invest time and funds making sure they provide the best possible security to their registered Mauritian traders.
Naturally, using tested, efficient trading software is one part of the story but using safety technology is another.
Majority of binary options brokers use Secure Socket Layers technology (SSL) when it comes to making sure information being exchanged is secure. This technology encrypts data being exchanged between traders and the broker platform thus making it secure and not prone to being manipulated by the third party or used in any other way which could be harmful to traders.
However, traders also have to make sure they have all the necessary details when they consider a certain broker they would like to use for binary trading. One way, is of course, going to the broker platform and looking for details about security which is usually given in both FAQ section but also in banking & security section.
In fact, traders can actually ascertain whether or not a trading platform is secure by looking for a tiny green padlock or a green bar in the URL section which will prove that the broker is using a security technology. Letter HTTPS also confirm this is so because the letter “s” stands for security in this case.
Yet, traders themselves have to be responsible too – use passwords which are strong, make sure their computers/mobiles are safe and free of viruses.
Risk warning is another serious issue binary options brokers have to make known to their traders. And reliable, trustworthy brokers will do so. In most cases the risk warning will be visible on the homepage, at the bottom.
It is important that Mauritian traders read the risk warning and understand what sort of risk is involved in trading binary options trading.
Carefully studying terms & conditions and the risk warning is a must for all those considering to trade binary options.
Risk is present in any kind of business and any kind of trading, but all those willing to take part have to be aware of the risk but they also have to behave responsibly themselves and not rush into trade, investing funds they cannot stand to lose in the first place.
Useful Tips for Mauritius Traders
To end of this in-depth article, we shall offer a “step-by-step” summary of useful tips Mauritius traders can use to their benefit.
First step is to get all the available information on the broker they like and there are plenty of sources to use – from the trading platform itself to reading broker reviews available online.
The more traders know about the broker the easier it will be to navigate binary options trading.
The same principle can be applied to other aspects of binary options trading, such as getting familiar with the trading platform too. Exploring various trading options, expiry times, trading tools and features such as demo account and mobile trading apps.
Dedicating time to study and read various sections on the broker trading platform like educational materials and, more importantly, terms &conditions as well as the FAQs, is not a step new traders should skip. Knowing all binary options trading entails is essential.
Moreover, Mauritius traders should also put customer support to the test – ask questions and then monitor how quickly the response will come, but also try to gauge the quality of the customer support agent’s response and how helpful it was to the trader.
Making sure traders know the risk involved in trading binary options trading, being informed and making sure the safety is top notch will enable traders to have a good starting point in binary options trading.