Binary Options Trading in Norway
In today’s investment world, many traders enjoy trading binary options. It can be such a lucrative investment practice, and today many traders are choosing Norway as their hosting destination for binary options brokerages. Let’s find out what Norway has too offer in terms of binary options trading.
Norway is a popular destination among binary options traders. This is largely due to the countries relaxed take on financial investments. In 1990 Norway lifted all remaining regulations pertaining to the financial markets which allows for the trading of binary options. Another attractive feature in the Norwegian binary options markets is the lack of exchange control for dividend payments, as well as the branch profits and service fees.
As well, there is a great deal of protection for investors. If for any reason there is a dispute between investors and the brokerages, it is referred to the central bank for rejection or approval. The central bank (Norges Bank) in Norway seems to be the most important directive for referring to any mishaps or controversy. As Norway is one of the most financially stable countries in Europe, has a stable political situation, and lack of regulations, makes it a very attractive country for financial investing practices such as binary options trading.
Currency Pairs & Spread
Common currency pairs in Norway are much the same as other countries who trade binary options. The majority of traders’ trade what are called ‘Major’ currencies. These currency pairs include: AUD/USD, EUR/USD, GBP/USD, JPY/USD, USD/CHF, and USD/CAD. These currency pairs have the tightest spreads due to their frequent trade volume. Another currency pair unique to Norway traders is the Norwegian Krone (USD / NOK). The Norwegian Krone is the national currency of Norway, hence making it a popular currency to be traded. This currency pair falls under the category of ‘Exotics’, which include other currencies such as: USD/SEK, USD/ZAR, USD/MXN, USD/SGD. These currency pairs have wider spreads, but are still popular among some traders.
Norwegian traders have an abundance of platforms to choose from when it comes to binary options trading. There are no regulations which opens up the window for investors and brokers to a variety of options in trading platforms.
All the best trading platforms offer mobile and desktop applications which provides investors access to the platform from anywhere. As well, the platforms offer intuitive design and usability for executing trades, technical and analytical analysis, and market research. These platforms also boast powerful and technical software for a seamless trading process. In Norway, there is no shortage of reputable platforms to choose from.
Bonuses are not something new to binary options. This is the case for Norwegian brokerages as well. There are various bonuses that companies offer their clients, enticing them into signing up, making more deposits, or simply to keep them trading with their platform. Some of the most common types of bonuses are as follows:
- Welcome Bonus – This is the most common type of bonus, usually receiving an amount of money just for joining a brokerage and making an initial deposit.
- No Deposit Bonus – Another bonus, like the welcome bonus, rewards you with money just for signing up and doesn’t even require a deposit.
- Mobile Bonuses – This is a bonus for downloading a brokerages mobile application and using it.
- Refer a Friend Bonus – Receive money for getting a friend to sign up, they may be required to make an initial deposit.
There is a wide variety and different variations of these bonuses, but they always result in the trader saving or gaining some money for trading on the platform.
Deposit and Withdrawal Options
When it comes to deposit and withdrawal methods for binary options, there are many avenues one could go. The most popular methods among investors in Norway are as follows.
- Debit & Credit Cards – This option is popular due to its quick and easy withdrawal and deposit process. The versatility with credit cards is very popular among foreign investors, which make up a large portion of the Hong Kong traders in binary options.
- Bank Wire Transfers – Another popular option due to its seamless and simple process.
- E-Wallet Providers – A very popular method among Norwegian investors. Popular online money transfer options in Norway include Neteller, Skrill, and PayPal.
Legality & Regulations
Binary options trading in Norway is legal and is not regulated under any regulatory authorities. However, the brokerages who operate out of Norway and offer the investment practice of binary options trading are or should be regulated by the FSA (Financial Supervisory Authority of Norway). This regulatory power oversees all the financial markets in Norway, requiring companies to report their finances to the FCA of Norway to prove they are abiding by the rules set in place. The FSA of Norway also insures companies that they oversee are up to standard and protects investors from fraud and malpractice. As well, the FSA protects investors from fraudulent brokerages they do not oversee, by providing warning lists of brokerages not to be trusted. These lists include many of the binary options companies who are fraudulent.
Another important regulatory body governing the markets in Norway is the MiFID. As Norway is apart of the greater economic region of Europe, the financial markets fall under these guidelines, just like all of Europe.
- Are binary options legal in Norway?
Yes, the trading of binary options is legal in Norway. However, like most of Europe, the practice is unregulated.
- Are binary options regulated in Norway?
No, it is unregulated. However, they are somewhat overseen and looked out for by the FSA of Norway and the MiFID. As well, the central bank of Norway plays an important role in certain aspects of binary trading and the financial markets.
- How can I trade binary options in Norway?
First you must open an account with an investment firm offering binary options trading. Its is really quite simple, and can be done online in a few simple steps. Some companies do not even require a deposit to start trading.
- Is it safe to trade binary options?
When trading binary options with a brokerage operating out of Norway, it is safe. They should be a reputable company operating under the FSA of Norway.
Best Brokers in Norway?
In terms of binary options brokers in Norway, there are few. Norwegian investors prefer to trade with the best brokerages regulated in other countries, while still residing in Norway.
This article has overviewed the investment methodology of binary options trading in Norway, shining light on the regulations, platforms and other aspects of this lucrative investment opportunity. We have learned why Norway is a popular choice among binary option traders, and what’s unique to the investment method in Norway.