Binary Options Trading in Turkey
Turkey plays a very important role as being the link between Europe and the Middle East. With a highly diversified and young population, many Turkish residents have been looking at new ways to making money. In today’s society, the technology available on the internet, among other things has led to the trading of binary options. This has sparked a new revolution among Turkish investors, but will this last and be accepted by Turkish regulatory authorities? Let’s find out!
When the trading of binary options first became popular in turkey, the investment practice was widely unknown and underdeveloped. Since it came to be in 2008, it has become widely popular among investors and brokerages from all over the world, including Turkey. However, recently the financial markets regulator in Turkey known as Capital Markets Board (CMB), has banned and made the trading of binary options an illegal investment practice for investors and brokerages in Turkey. This has caused a widespread uproar amongst investors and brokerages in Turkey.
So, since binary options trading is now deemed illegal in Turkey, is it impossible to trade binary options if you are a Turkish citizen? The answer to that is no. Turkish investors still have options available to them with an extensive list of international binary option companies to choose from.
Currency Pairs & Spread
The common currency pairs traded by Turkish investors for binary options has been decreased due to the new rules set by the CMB. In efforts to curb the forex market and trading of binary options in Turkey, the CMB enacted rules that made trading the local currency, the Turkish Lira (TRY) quite unprofitable.
For traders who are able to find international brokerages to trade with, they trade the most common currency pairs called ‘Majors’, which include the following currency pairs; AUD/USD, EUR/USD, GBP/USD, JPY/USD, USD/CHF, and USD/CAD. These are the top currency pairs traded among most binary options traders, and have the tightest spreads due to their frequent trade volume.
The second most traded currency pairs are a group called ‘Crosses’. The currencies include EUR, JPY, GBP, and CHF among others. This group of currency pairs are not traded as often, thus resulting in slightly larger spreads.
Some Turkish binary option traders enjoy trading more rare currency types. This group is called ‘Exotics’, and have the largest spreads. Some currencies involved in this group are MXN, TRY, THB, SGD.
As of now all the remaining platforms that were from Turkey have been blocked and shut down by the CMB. As a result, Turkish traders look to international trading platforms for the trading of binary options. However, many of these international trading platforms have their IP addresses blocked by the CMB in Turkey, making it impossible for Turkish investors to trade on them while in Turkey.
That being said, there still are a number of international platforms available to Turkish investors, just some of the most popular ones have been blocked. All the best binary options platforms have mobile and desktop applications or access. As well they feature intuitive and responsive designs with impressive charting and analysis tools. They are powered by top of the line software which provides lightning fast speeds during execution of trades. Most binary platforms available to Turkish traders are impressive and technically advanced.
Obviously, there are now no bonuses for Turkish binary options companies. Although, there was before it became illegal. Now Turkish traders benefit from the bonuses of international brokers. Bonuses are not something new to binary options. 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
Ordinarily, there are many ways to deposit and withdrawal money to your binary options account. However, Turkey is not an ordinary situation when it comes to binary options trading. Many Turkish investors prefer to deposit or withdrawal funds using e-wallet providers such as PayPal, Neteller, and Skrill. Also, credit cards are a popular method for some. These methods are popular due to their feasibility for Turkish investors.
Legality & Regulations
Binary options trading in Turkey was and has been legal for quite some time. However, recently the regulatory authority of Turkey, known as the Capital Markets Board (CMB), has made the investment practice illegal for brokers and investors within Turkey. The CMB has categorized the trading of binary options as a gambling product instead of being a financial-market instrument.
The CMB does not take the trading of binary options lightly, and are enforcing strict laws with severe consequences for those who disobey. It’s not only illegal in Turkey, but brokerages are now being criminalized for offering binary options services to their clients as well. The CMB takes the matter very seriously and is putting measures in place to prevent the advertising of foreign binary options companies to Turkish investors.
- Are binary options legal in Turkey?
No, it was at one time, but is now illegal and Turkish investors and brokerages can even be criminalized for participating in binary options trading.
- Is it safe to trade binary options in Turkey?
The trading of binary options is not permitted in Turkey, hence causing some risk for investors going against the law to trade with international brokerages. If Turkish investors do wish to trade, they must take precautions and choose a licenced and reputable foreign binary options brokerage that isn’t blocked in Turkey.
- How can I trade binary options in Turkey?
You must open an account with an international investment firm offering binary options trading. The brokerage must not be blocked or banned by the CMB in Turkey. Once a broker is found, it can be done online in a few simple steps. Some companies do not even require a deposit to start trading.
Best Brokers in Turkey
Binary options trading is illegal in Turley, so all the best binary options brokers in Turkey have been banned from providing this service. Turkish investors must seek international trading platforms for binary options.
This article has attempted to shine light on the complicated and unfortunate binary options market in Turkey. We have discovered that the trading of binary options is illegal and strictly permitted in Turkey, but that there are still options overseas for traders. As well, we have looked into various aspects of binary options trading in Turkey pertaining to the Turkish investor.