Binary options legal?
Mistakenly believe some still Binary options are a kind of gambling and therefore illegal. The is however definitely not so. Binary options are a highly speculative financial products and steuerechtlich and legal point just reviewed – as an investment. This Binary options are legally tradable.
Are Binary Options Legal? When new products of this type offered on the financial markets, to ask such questions. Especially investors with less experience sometimes distrust these financial instruments, of which you have not heard much. If they come from Germany, the traders trust a regulated by BaFin broker, but Binary Options Broker domiciled very often in other states. Especially Cyprus offers the appropriate providers a tax-favorable seat. Are there the same rules as in this country?
Development of binary options
Binary options are a realtiv young financial product, because it is available for private investors only since 2008. The US Options Clearing Corporation had since 2007 when the CFTC (Commodity Futures Trading Commission) demand, to what extent these options that the institutional trade was already announced, could be made available to private traders. From June 2008, the CFTC these financial instruments for the private trade was free, they have since been offered at the Chicago Board Options Exchange. The American laws are particularly strict, that reason can be formulated clear that binary options are legal.
Nevertheless, it must be said limiting that Binary Options OTC traded, ie OTC (Over-the-Counter). This also means that not the SEC is responsible for it and that the brokers who sell them to the traders and take back from them, but do not necessarily require a license. This resulted in just the first two to three years to be able to establish that some black sheep in the relatively unregulated market. These are unlikely to be still found in, 2015.
What these licenses mean?
The license of a broker is the securitization of a regulation. Financial authorities as the CySEC or the German BaFin regulate broker Online Scam and paying attention to the observance of standards. A license requires the broker to work as usual in the financial sector for specific guidelines and statutes, in Europe, these are defined by the EU directive MiFID on financial markets.
That such a license only for lawful products will be awarded, is obvious. Compliance with the guidelines is above all to protect investors. Traders can therefore rest assured that the broker works reputable and customer deposits are protected in a possible broker bankruptcy.
As regarded the German government to Binary Options Trading?
The German government does not mind that investors act with a foreign broker binary options. The EU’s MiFID directive was adopted specifically that in Europe the cross-border trade is facilitated and harmonized. Finally, it is also possible to open a foreign bank fixed deposit or a loan. However traders need to consider the tax aspect.
Who has an account at a domestic brokerage, must worry about is the payment of capital gains tax on its profits: The broker automatically handles as a withholding tax to the revenue department. Foreign brokers onlinescam do not do that, the trader must specify the profits and then pay the tax himself so in his income tax return.