Binary options were banned to retail clients in the European Economic Area on 02.07.2018 by the European regulator ESMA. This ban was placed so the EU would protect their citizens from taking a high risk that is associated with trading binary options. The ban is temporary, but for now, it does not seem it will be lifted anytime soon so I have prepared a guide what you can do, if you are based in Europe and still want to trade binary options.
The ban applies only to EEA countries
Because the ban on retail binary trading applies only to traders that are based in one of the European Economic Area countries, traders from some countries that are in Europe (like Switzerland) can still freely trade binary options.
How to avoid the ban that applies to binary options in Europe
One of the most convenient options is to choose a product that is very similar in nature to binary options. This does not mean you will have to trade a product that is completely different from binary options that you so love, but a product that complies with the strict ESMA rules. One of such products is, for instance, FX Options that are available on a platform of a CySEC regulated broker IQ Option.
Trading with Non-EU Branches
The second option in order to trade binary options in Europe is to trade with an off-shore broker. There are a lot of brokers that accept EU based clients and allow them to trade binary options. However, choosing such a provider is very risky as they are often not regulated by any reputable financial regulator. Trading with such brokers is not recommended as there are a lot of scams that are not overseen or monitored by any authority.
Requesting a professional account
The third option is to ask a broker for a professional account. If you do so, please note that you will have to meet 2 out of 3 main requirements (these include proving that you have a sizable portfolio, relevant work experience, and active trading history). Every broker that accepts binary options professionals has very similar conditions, the best option to find these requirements is to ask your broker or read dedicated articles on how to get the PRO status (like we have for instance, for the IQ Option broker (How to get the PRO status)).
Summary on how to trade binary options in Europe
So here you have it, 3 options that you have if you are based in Europe and you still want to trade binary options. Because getting the PRO account is quite difficult and trading with an unregulated broker is very risky, the best option, if you are a retail binary trader from Europe, might be for you to choose an alternative to binary options.
Thank you for the informations.
I am not from Europe but i’ll move to Europe soon.
i have an account in IQ OPTION with my Moroccan identity card and number, will this ban effect me to ?
Given the fact you are still Moroccan, the ban might not affect you. But it’s possible that they have IP exclusion in place so when you move to Europe, the option to trade binary options will just no longer appear. I think the best thing to do is to ask directly IQ Option to be on the sure side of things.
what if i used vpn
That would not work since you need to verify your account with a copy of your Identity card.