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Digital Options Set for Increased Regulation
Traders Magazine Online News, March 27, 2019
Digital options continue to go from strength-to-strength despite tighter regulations from governments around the world. It has critics, with some comparing it to gambling. However, with minimum deposits as low as $10 and 86% returns on the ‘riskiest’ trades, it is little wonder that it is taking the trading world by storm.
Notably, if one wanted to invest their money with little risk, the returns are very small. Most banks offer 1-3% returns. When you consider that inflation can fall within that range, your money basically remains stagnant. Notably, banks invest deposits in a similar way to binary options. They speculate on the market and make data-backed decisions. They then give savers a small portion of the returns.
For centuries banks and governments have controlled the gates to true wealth building. Those with expert knowledge of global markets will never become broke. They don’t have to manage inventory, provide great customer service or ride downturns. In fact, every good investor hopes for economic turmoil. A lot of money is made during periods of uncertainty.
Wherever people invest money, you will find fraudsters. The digital options industry is no exception. People have launched websites with the sole purpose of scamming people. They have ridden the momentum of digital options in order to ‘steal’ billions of dollars collectively.
Despite tighter regulation, government agencies have struggled to control the digital options industry. Many have moved their operations to countries with loose laws. The EU moved to ban digital options altogether, but what use is a ban if anyone can find the platforms and trade within minutes?
Arguably, governments are trying to control something they don’t understand. There are legitimate platforms out there, which have enabled people to build a fortune from home. The trading floor has been opened to every man, and that is an incredibly powerful feeling.
If the failed war on drugs has taught us anything, it is that you can’t stamp out what people love to do. They will only move it underground, and this simply makes things worse. For instance, as governments begin to crunch down on digital options, many platforms are now beginning to accept cryptocurrencies. This results in anonymous trading. On the other hand, it also enables brokers to remain anonymous.
The best thing governments can do is to educate people on the pros and cons of trading digital options, and how to do so in a safe and secure manner. Arguably, the reason why governments are keen to regulate the digital options market is that they don’t benefit from it. Most digital options platforms set up in tax havens. Moreover, they provide an attractive alternative to ‘traditional’ investment products such as bonds and savings.
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