Legality of binary options in australia??

[addz123]

Does anyone know if it's illegal to trade/promote non-australian regulated brokers in australia?

According to ASIC, a broker needs to be regulated in Australia to be legal:

http://asic.gov.au/about-asic/media-...ion-providers/
Any entity that deals in, or provides advice about, binary options to Australian investors must hold an Australian financial services (AFS) licence, or be authorised by an AFS licensee.

However, i know there's lots of CySEC regulated brokers accepting Australian traders, so i don't know if these are allowed too? Is it illegal for non-australian regulated brokers to accept clients in australia?

[JohnA]

According to that quote you wrote, yes, it's illegal for non-Australa licensed brokers to accept Australian clients.

I'm however unsure as of what would happen to brokers that break this law. I'd guess the maximum that could happen is they will eventually IP block them once they decide to actually enforce that law.

On the other hand, there are a handful of Australian binary brokers that have the required licenses.

[addz123]

Well if you're promoting non-licensed brokers to Australians heavily then its illegal for an affiliate too.

[JohnA]

That's interesting.

On the other hand, I'd be curious to know what exactly they can do, especially if you are located outside of Australia.

Maybe IP block your site? - It would seem far fetched that they would (or even could) take legal action against you.

[MrBinaryAff]

That's interesting.

On the other hand, I'd be curious to know what exactly they can do, especially if you are located outside of Australia.

Maybe IP block your site? - It would seem far fetched that they would (or even could) take legal action against you.

I think they can, depends where you are hosted and who is the owner of the domain.

[roccolondon]

It's definitely illegal !!!


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[MrAJ]

There have been letters to affiliates threatening huge fines when they continue to promote non-regulated brokers. I'd just stay away.