The role of your binary options broker is very important and choosing a broker is not a decision that should be taken lightly. If you are new and wondering what are binary options, start with our article here. Otherwise continue reading to learn about all aspects of binary option brokers.
Starting with our current top rated brokers.
Top Rated Binary Brokers
$50 Cashback BONUS
Deposit BONUS for new traders!
Bonus 25% of your deposit amount
Note: that the above is a general world list. We have dedicated top broker lists specific to many countries and regions which take into account aspects like local payments and regulation.
Japan, Indonesia, Thailand, Malaysia, Singapore
United Arab Emirates (UAE), Saudi Arabia
What is a Binary Options Broker?
A binary options broker provides you a foundation on which to trade financial markets.
They provide you with streaming prices (market making) and access to the assets you wish to trade. A binary options broker is responsible for settling trades, providing the platform and processing deposit and withdrawal requests.
Your broker is also responsible for holding the funds in your trading account. Meaning they are in a position of trust.
For most retail traders, your binary options broker will provide you with the platform in which you will place orders, execute trades and keep track of your positions.
Zen Trade Binary Options Platform
Web based platforms are the most common. However a few brokers do offer streaming binary options pricing through MetaTrader 4 and 5. All brokers should offer mobile versions of their trading platform.
Great platform and pricing amounts to nothing if your broker is not able to process your payments cheaply and efficiently. Depositing and withdrawing to and from your binary options account can be easy and often free. Providing you choose a broker who has invested in these features.
Your binary broker should offer a wide variety of deposit methods.
Most binary brokers will offer depositing via credit card (Visa, Mastercard etc) and e-wallets such as Neteller. The better ones will be able to offer you the ability to deposit and withdraw via local bank transfer.
When choosing a broker, make sure you specify your country when asking what deposit and withdraw methods are available to you.
Demo trading accounts are another common feature provided by binary option brokers. The account should reflect real time trading conditions, including payouts, execution and price feeds.
Most brokers will require you to sign up to access the demo trading account. Zentrader is one broker that offers access to their demo trading platform with no sign up required.
Trade support is often an afterthought when selecting a binary options broker. It’s only when a trader has a problem or dispute, the importance becomes apparent.
In this day, binary option brokers should be offering support around the clock. It’s also worthwhile asking a broker their policy on resolving disputed trades.
Binary Options Trading in Kuwait
Binary options trading in Kuwait is gaining traction fast as the millennial generation born just after the Iraqi invasion of 1991 look to take advantage of the new technologies and opening up of the financial markets to seek alternative ways of investing and making money. In the words of a managing partner in Gambiorone Law, a law firm providing legal services to investors, the “number of people signing up (from Kuwait, Saudi Arabia and Egypt) is unbelievable”. In this article, we’ll look explore the state of the binary options market with a view to helping local investors.
Kuwait is by per capita income, one of the top 5 richest countries of the world. However, Kuwait is a predominantly Muslim country. Even though the country has taken steps to liberalize its economy and open it up to foreign investors, there is still a tilt towards Shari’ah compliant investment vehicles. Islam prohibits Riba or interest-bearing investments; a situation which has undoubtedly introduced some challenges for those who want to trade binaries here.
There are no local binary brokers in Kuwait. Therefore, all trading in Kuwait must be performed with offshore brokerage firms. Those firms that do offer the Islamic-style binary options accounts are quite few. The Shari’ah compliant trading accounts are accounts which do not permit any form of interest gain for swap or overnight positions. The laws in Kuwait governing the establishment of foreign companies, especially those in the financial investment space, are generally strict. Most foreign brokerages who would have wished to capitalize on the relatively wealthy nature of the Kuwaiti society therefore prefer to operate from other countries where the requirements are not so stringent and to target the Kuwaiti market from outside.
Best Brokers in Kuwait
Binary options are not regulated in Kuwait, but there are no local brokers as well. The best bet is to open the account directly from the website of an offshore broker located in a country where this trading type is regulated.
Only few countries offer very solid regulation of the binary options market or the products used therein. You must therefore follow the principles for selecting a good, suitable and well regulated broker. Above all, such firms must offer methods through which you can deposit and make withdrawals from your trading account. You can make your selection from the list of brokers that we have shortlisted below:
The financial markets in Kuwait are regulated by the Capital Markets Authority (CMA), working in conjunction with the Boursa Kuwait and the Central Bank of Kuwait. These agencies have oversight and regulatory function on the Kuwaiti Stock Exchange and all companies offering investment activities.
There is a law that regulates banking and investment finance activities in Kuwait. This law is housed within Law No. 32 of 1968 and was amended in 2003. Many of the investment companies operating within Kuwait offer investment models which are Shari’ah compliant. The Shari’ah Control Board exists to ensure that companies that are registered to provide Shari’ah-compliant services actually do so.
The restrictive nature of the financial market space in Kuwait has led to many locals who intend to trade in Kuwait to open and operate accounts with offshore brokers. This puts added responsibility on the traders to ensure that the brokers they open accounts with are regulated entities in the country of domicile.
Deposit Methods Available In Kuwait
With a tightly regulated and controlled banking system, traders in Kuwait need to be able to use make deposits to the trading platforms. Thankfully, the Kuwaiti government has worked hard to ensure convertibility of the Kuwaiti Dinar with international currencies. Therefore in addition to the traditional bank wire method, there are other country-specific methods of depositing money with a platform that are available to Kuwaiti traders. How do they work?
a) Bank wires: Kuwaitis can make deposits to their brokers with bank wire transfers.
b) Credit/debit cards: Popularly used cards are those from MasterCard and VISA. Debit cards are usually attached to bank accounts and are converted into the currency of the broker when the deposit is initiated. The use of credit/debit cards are therefore not a universally accepted method: some brokers will reject a Kuwaiti bank card. The broker that is chosen and the payment method offered on the platform will determine if local credit cards can be used.
c) Kuwaiti Specific Digital Wallets: There are some Kuwaiti-specific digital wallets that enable Kuwaitis to make deposits with certain brokers. An example is Boloro Kuwait.
d) Mobile Payments: Selected brokerage firms in the Middle East will accept payments made from selected mobile payment platforms such as M-Pesa, and SEQR M-payments.
e) Global E-wallets: The use of e-wallets with global or near-global access on trading platforms is increasing. In addition to the major ones such as Skrill, Neteller and Webmoney, there are other country-specific e-wallets which can be used to transact on the major ones as well as on the trading platforms.
Is it legal to trade binaries in Kuwait?
Yes. It is not illegal, but the regulations for setting up such companies in Kuwait are extremely stringent. Kuwaitis who are interested in binary options trading in Kuwait must use offshore brokers, preferably the regulated ones.
Are binaries regulated in Kuwait?
No. The regulatory activities of the Capital Market Authority do not extend to offshore binary trading.
How to trade binaries in Kuwait?
There are virtually no local brokers in Kuwait. In order to trade in Kuwait, you must first open a trading account with an offshore broker. The presence of introducing brokers in Kuwait is negligible, therefore traders must rely on online communication with brokers to be able to trade binaries in Kuwait.
Halal Binary Options
Binary option trading online is a relatively recent development which has made it possible for many traders to access the market. This was not always possible in the past. This type of trading is open to people of all nationalities and religious beliefs. However, it is worth noting that a quarter of the people living on this planet have Muslim beliefs. As such they are likely to take advantage of this type of trading. Unfortunately, a standard trading account can be linked to interest and this is considered a serious sin in Islamic cultures. To enable Muslim traders to benefit from the financial markets several brokers have created a specially designed account for Muslims.
The Idea Behind Halal Binary Options
The reason this is essential is connected with the Sharia law; this is the pathway which all Muslims should follow; effectively a guide as to how to live your life properly. The principles of Islam cover all aspects of modern living including Halal binary options trading. One of the founding financial principles of this religion and way of life is that you must never lend money and charge interest. An alternative way to locate finance is to use a risk sharing approach. This involves selling something and agreeing to buy it back or even providing a deferred payment for your sale.
How Sharia Law Effects Binary Options
Whilst a quick trade will not attract any interest earning potential, any trade which incorporates an overnight period will be subject to either earning or being charged interest. This applies to all brokers and can be accrued without realizing as you are able to invest in money markets around the world. These markets open and close at different times and any time a market closes with a trade open there is the potential for interest.
It is therefore extremely difficult for any trader to be certain that they will not cross the Muslim haram laws and fall foul of their religious beliefs.
Halal Binary Options – Solution, Not Limitation
The answer has arrived in the form of a specific Halal binary options trading account; also known as the Islamic trading account. This account is dedicated to ensuring there is no opportunity for the trader to earn interest. This includes things such as closing all trades at the end of the business day and reopening them in the morning.
There are several important criteria which need to be acknowledged and delivered if a broker intends to offer Halal binary options:
These include the ability to complete a trade immediately as well as settle any transaction costs before the opportunity to generate interest arises. It, of course, goes without saying that it should not be possible to earn any interest on any of your trades.
There are many different brokers who do offer this service. However, it is important to note that any Muslim trading without knowledge of the financial markets is automatically contravening their religious beliefs.