No, trading binary options are not the same the world over. The legal and regulatory aspects applicable for the binary options trading process varies across the globe. For traders from a specific nationality, the binary options investment process is lawful and convenient. However, there are a few nations where the process is considered unlawful, making the process complicated or inconvenient for the traders.
Since binary options are comparatively new financial derivatives in the trading world, the legal status accorded to this form of investment varies between countries. However, most of the regulations are imposed on the brokers rather than the traders and it is possible for traders to participate in the trading process literally from any country. However, when we check in to the terms and conditions pages of most of these platforms, there is a declarative warning in the web pages that require the traders to verify the legality of the trading process as applicable in their jurisdiction. It is indeed kind of tricky.
When dealing with the decision making process of whether to trade or not, the choice obviously narrows down to dealing with trading platforms and brokers who are governed by regulatory bodies authorized by your jurisdiction. Again, there are different regulatory bodies and not all regulatory bodies are accepted by all jurisdictions. A bit of homework is required before you ultimately decide to sign up with the site.
The major regulatory bodies for the binary options trading process are:
- CFTC – Commodities Futures Trading Commission in USA
- CySec – Cyprus Securities and Exchange Commission in Europe
- FSA – Financial Service Authority in UK
- ASIC – Australian Securities and Investments Commission in Australia
- DIFC – Dubai International Finance Center in United Arab Emirates
- FFMS – Federal Financial Markets Service in Russia
In most cases, it will be seen that the brokers have obtained licenses from the government bodies that control their financial activities. This in turn enables the brokers to prove their integrity to their clients who are to invest money with them.
Ultimately, it is about the security of the money being invested. If you are able to invest and not withdraw your returns, that is indeed a messy situation – you do not want to get in to legal issues in your jurisdiction. You should be paying taxes on the profits you thus make. Lot of financial stuff involved in the process and you should research in to “what rules your right to trade” in the country where you live and you should decide accordingly.
Most UK Banks offer specialist banking for students under 18; with the majority of them guaranteeing an interest-free overdraft until studies are completed. Some have a limited overdraft and others offer much higher amounts; so as with anything else it is wise to shop around. Take careful note of the wording, as while some banks offer guaranteed overdraft amounts; others will list up to a certain amount, and if you’re not careful you could end up with hefty charges.
Whatever the set overdraft limit, do not ever exceed that amount whether you are paying interest or not; as even when you are paying interest on your overdraft the charges will increase dramatically if you break the limit. If you have an emergency and need extra funds, you should talk to your bank about an extension or any other options that may be open to you.
Exceeding your limit could cost you 25% interest, or a fixed charge on every transaction made beyond the limit: i.e. going over by £30 in three different transactions could end up costing you an extra £75 if the transaction fee is £25.
Opening a bank account will mean that you will have your credit history checked and as a student you probably have no score yet, and most banks take this into consideration with their special accounts for students under 18. However, the way you use your bank accounts and overdraft facility will make its mark on your credit rating, which will affect you in the future so take great care.
After graduating this type of account no longer applies and you will need to open a different account which will have various perks and drawbacks, so again it is important to study the conditions carefully before choosing where to go next. Many banks offer a top graduate account for a year or more after graduation; which will still give you the opportunity of interest-free overdraft, as well as a payment plan to eventually clear the debt.
Any overdraft should be used with caution and only when absolutely necessary, as most students already have their student loans to pay off once they graduate, and making use of an overdraft is only adding to your debts.
Student bank accounts that have special dispensations like interest-free overdraft will not pay any interest on accumulated savings, so if you are lucky enough to be able to save money on a regular basis, it is advisable to open a separate savings account where your money will earn interest.
Your children might need a solid financial education since his or hers first ages of life. Sure, we are not talking about making your kid work for every penny, but to teach him the importance of being balanced. Especially during those times of financial recession, we bet that you would have been a lot happier if you hadn’t been forced to learn the lesson of being calculated in a hard way. Your child could learn the rules of being responsible with money since the early ages, and this is surely a characteristic that would be useful later.
You don’t have to start this education with real money. On the contrary, it is recommended to reward the child with promises, sweets, clothes or other objects needed. As soon as the child learns about the fact that he should do something for a reward, you can get to the next stage.
Start giving money to your child. However, tell him not to spend it all at once, but to raise the money for a more expensive item. Of course, it is important to motivate the child. Sometimes, bigger sums than the ones initially expected would represent a solid motivation, especially if the child was able to retain from spending too much.
Later, you can even teach the child the basics of investments. Maybe your child has a bright idea, so you can teach him about getting on the internet to find the micro-loans that would make his dream true. Or maybe you want to teach him how to invest the money that he has earned, and in this case, the micro lending websites could help you to find a solid but cheap method to invest. This way, you will have your own small family business that you can manage along with your child!