Is Binomo Legal in South Africa?
Binomo is one of the largest online trading platforms globally, having numerous customers from 133 countries. It's widely popular in countries like India, Turkey, and Vietnam. Moreover, you can use the application in 12 different languages like English, Chinese, Thai, Hindi, and more.
As a result, Binomo has become a go-to trading platform for beginners and professionals, boasting over 1,000,000 active traders and 30,000,000 successful trades every week. Users have also praised the trading platform for providing access to binary options across the globe.
However, traders still hesitate to invest in Binomo despite offering a wide range of beneficial features on the platform. It's due to the lack of knowledge about the legitimacy of trading with the broker. In this article, let's understand if Binomo is legal or a scam.
For More Information on Binomo, Read our Article: Binomo Review – Is it a Scam? [South Africa, 2022]
Is Binomo Legal?
Yes, Binomo is legal in more than a hundred countries, and traders from India, South Africa, Indonesia, Japan, and more can freely trade on the platform. However, since it deals with binary options, it's banned in countries like the USA, Australia, Canada, Syria, Japan, the Russian Federation, and all countries in the European Union.
To explain, regulators in the countries mentioned above view binary options as a form of gambling and have banned them. Therefore, it's illegal to use Binomo for traders who have citizenship in one of these countries.
But, despite varying opinions, trading in Binomo can't be considered gambling. Users have to choose and pick the right option from different chart types representing marketing activities. It's segregated based on assets, dates, budgets, and other filters. They need to use this information to make the correct decision instead of leaving it to chance.
For those that still doubt the legitimacy of the platform, here are a few ways Binomo has proved to be a safe and legal broker:
#1. Regulation by Finacom
Binomo is currently regulated and recognized as a category A member by the International Financial Commission since 2018.
For those who don't know, the International Financial Commission shows expertise in financial markets and is an independent body that resolves disputes between a broker and its consumers. They also act as a regulatory body for binary trading organizations like Binomo.
One benefit for traders is that the IFC has a compensation fund for all its members. It means that if something happens to Binomo in case of compromised funds, traders would be protected for up to $20,000. The protection guarantees traders of their funds being safe and explain how Binomo values their resources.
All in all, being a Category A member of IFC showcases Binomo's reliability, quality, and transparency offered in their services, making them a prime choice for a broker worldwide. It also assures that Binomo is running legitimately as a trading platform.
#2. Approval by VerifyMyTrade
VerifyMyTrade is a SaaS-based platform that enables traders to measure and check the quality of execution in the forex industry. On top of that, the organization cooperates with the Financial Commission, making it possible to transparently and reliably assess the quality of trades with brokers.
Consequently, Binomo has successfully undergone an audit by the company and has received a certificate for their quality trading service. To add to that, the trading platform has agreed to undergo a monthly audit on 5,000 executed traders by VerifyMyTrade.
#3. Certificates for Securities Trading by VFSC
Vanuatu Financial Services Commission or VFSC is the financial regulatory authority of Vanuatu and regulates non-banking financial services in the country. They've offered CFD trading by Titawin Limited, a Binomo affiliated company.
Additionally, a principal's license for dealing in securities was given to Titawin Limited under the hand and seal of the VFSC Commissioner on August 6th, 2020. As a result, under this license, Binomo can provide its traders access to the fast-moving global financial markets, like indices, equities, commodities, and derivate products.
Currently, Binomo is in the process of acquiring a license from CySEC, a regulatory body located in Cyprus. It shows the broker's dedication to proving itself as a legitimate trading platform.
Still not convinced? Let's take a look at what Binomo offers to their partners who choose to invest and participate in using the platform.
To further prove its legitimacy, Binomo has nurtured an ever-growing stream of profitable partnerships with affiliates. It has attracted various trading experts and aspirants everywhere and has helped them earn significant profits.
Additionally, several unique features have convinced thousands of affiliates around the world. They are:
Binomo has taken several steps to ensure its users and partners are satisfied with their legal service. Therefore, they deserve to be labeled as a safe and dedicated broker for trading aspirants.
Now, let's take a look at some accomplishments Binomo has made since its foundation in 2014. They stand witness to Binomo being a 100% legal trading platform.
Another proof of their honesty and legal service is the awards they've received from professional trading organizations. Also, they've received praise from various regulatory bodies, investors, and other professionals. Here's are two of many awards Binomo has received throughout the years:
Winner of the IAIR Awards 2016: IAIR has recognized Binomo as one of the most reliable trading platforms in the industry. For those who don't know, IAIR Awards are rewarded for excellence in the industry of the global economy, finance, and sustainability.
Best Platform for Beginners at FE Awards 2015: The FE awards rewarded the trading platform because of its beginner-friendly interface. Additionally, the FE awards are given to the most reliable companies in the banking sector.
Furthermore, Binomo has received many awards presented by esteemed organizations and regulatory bodies for trading, assuring customers it's a legal and safe platform for trading practices.
If users have any issues while investing or using the trading platform, Binomo has offered various support touchpoints for their customers across the globe. They deliver the following features to ensure users don't have any issues while contacting them:
- Audio assistance through phone calls
- Chat boxes that store chat history
- Concise emails with clear-cut information
- Video calls to solve in-app issues
Further on, Binomo has taken extensive measures to deliver top-tier customer service and keep its users alert at all times. Therefore, they provide support in several languages like English, Spanish, Thai, Vietnamese, Chinese, Hindi, and more.
#7. Trading Fees and Costs
Traders have to pay fees while using the services of the trading platform. However, the commissions taken are within legal boundaries and mentioned in the client's agreement, which users are obligated to agree to before making a Binomo account.
Moreover, Binomo does not charge fees while users open or close an account. The initial deposit asked before making a real account isn't a commission but the minimum amount the customer can use for trading on the platform. These are the fees Binomo charges the users of their platform:
#8. Withdrawal Fee
Binomo may charge a withdrawal fee on rare occasions. To explain, users can freely start trading to try and make a profit. After a while, they can request a withdrawal without paying any commission. However, the amount withdrawn must be twice the amount of their deposit.
In short, if users don't perform any trades or only earn a small amount of profit, Binomo will charge a fee of 10% at the end.
#9. Subscription Fee
Binomo charges a fee of $10 or €10 if a trader's account doesn't feature any activity for 30 consecutive days. Additionally, they will be charged the same amount every month if the account stays inactive.
However, users don't even need to invest money to learn and use the trading platform's features. The demo account is what you need to begin your Binomo experience with!
#10. Binomo Demo Account
To learn more about how Binomo works legitimately, users can explore the platform's demo account before trading with a real account. To clarify, using a demo account will allow users to evaluate the broker and look at all the tools and features they want on an online trading platform.
All in all, Binomo offers traders the opportunity to practice strategies and become familiar with the platform with an option to have a demo account. To create one, all traders need to do is sign up using their email, and they'll receive $1000 as dummy money.
#11. Financial Instruments
Traders can choose between 73 different assets to invest their hard-earned money. Over the past few years, Binomo has expanded its list of financial instruments to provide more options to its users. Let's take a look at some of them:
Foreign exchange trading is the most popular option among traders in Binomo. It's the exchange of one currency to another for trading purposes. Therefore, the platform features the most popular currency pairs like: USD/EUR, AUD/CAD, AUD/USD, and more.
Binomo offers CFDs on stock from companies around the world. Above that, unlike other brokers, the trading platform doesn't charge opening fees for stock CFDs, meaning traders are free to purchase them without paying additional money. Some stocks featured on Binomo include Facebook, Intel, Netflix, and Apple.
The platform offers Bitcoin and Litecoin CFD's in the cryptocurrency department. Also, users can trade money from Crypto IDX by choosing it from the asset list. Regardless, Binomo allows seamless deposits and withdrawals for cryptocurrency, thus, making margin trading leverage and short selling easy for users.
Traders can purchase and sell digital options on exchange-traded funds in Binomo. These include semiconductors, energy, technology, and metals. Additionally, ETFs can only be traded as a single trading instrument on the platform.
Note: If any of the aforementioned assets are banned in your country, it is illegal to trade them, meaning users can't purchase or sell them on Binomo.
Frequently Asked Questions
No, Binomo is not a scam. It's a legitimate online broker used by thousands of traders every day from 133 different countries across the globe. Additionally, the trading platform is a category "A" member of the IFC.
All in all, Binomo is committed to maintaining the highest standards of conduct and business practices and isn't a scheme to take fraudulently take your money.
No, South African traders shouldn't hesitate to use Binomo, as binary options are completely legal. The main reason behind this is that there aren't any regulations regarding trading, which means no regulatory bodies to ensure brokers comply with the law.
In other words, government authorities won't punish traders for practicing trading on the platform. However, investors should be cautious as there aren't any restrictions or rules brokers have to follow.
With everything said above, we can say that Binomo is a safe trading platform for people in South Africa, India, Europe, and worldwide. With reliable customer support, a wide range of accolades, and an extensive number of features, traders won't regret choosing Binomo as their trading broker.
However, it's important to remember that trading is connected with the risk of losing funds, so traders should trade responsibly.
There we go! Create a Binomo account and start trading with no fear by taking the next step towards becoming financially independent in the future.