In 2014, binary options trading entered the mainstream. Many experts had consistently predicted that it would grow to become a major conventional trading activity, and we are seeing that happening even now. But what is the future of binary options brokers such as BD Swiss? Will the industry continue to grow during the coming years? Will regulatory agencies clamp down on brokers or give them more leeway? Read on to discover the answers to these questions and more.
What influences the future
While binary options trading continues to grow in popularity, it is still relatively undiscovered territory especially when you compare it to the daily trading volumes of stocks, currencies, and other conventional options. This is why you should expect more regulation in future. In many jurisdictions around the world, there are no hard and fast rules on the legality of binary options.
Many European countries do award options traders with licenses while others are still in the process of enacting the necessary regulatory frameworks. In the United States, this form of trading is not prohibited, although most of the brokerage firms operating there have their licenses in outside country.
Brokers will have to operate differently
As brokers become regulated in Europe, they will be expected to implement better services and products which are fairer across the board. The main way brokers make money today is by providing relatively low payout rates. In futures, they might be expected to provide higher payout rates so as to offer winning chances to traders.
Another important development that is already being implemented is the rolling out of binary options that have longer expiration times. In the past, brokers largely concentrated on binary options with short expiration times as this significantly lowered the winning chances of traders.
Now many (mostly European) brokers are implementing options with expiration times of up to several days or even weeks. This means traders get very high winning opportunities because predicting the future movement and behavior of assets becomes more accurate the more a bigger timeframe is provided.
Expect the binary options industry to keep changing and transforming itself in future, and brokers will have to implement constantly new features. They will also need to introduce innovations for them to stay afloat. As in the case with many professions, change is inevitable at some point.
This will result in new services, better payout rates, larger bonuses as well as a safer and more streamlined business environment. The future of binary options brokers is therefore very promising indeed.