Binary Options Trading in Ukraine
Ukraine is gradually becoming a popular destination for binary options online brokers. There is a very simple reason for this. The closure of the binary options online industry in Israel has seen many companies involved in the Israeli binary options online industry relocate to other countries with low entry bars for regulation. Tech Financials, one of the major B2B companies in the binary options online space which provides trading software for several brokers, recently relocated its Israeli-based software division to Ukraine. This has produced a one-way exodus from Israel to Ukraine.
Ukraine’s attempt to join the EU was truncated by the Viktor Yanukovych-led regime. This led to the country missing out on being a signatory to the Markets in Financial Instruments Directives (MiFID) protocol, which would have allowed regulated brokers free access to the Ukrainian binary options online trading population. A lack of local regulation has created a vacuum which is now being filled by Tech Financials and other brokers expelled from Israel.
The absence of a local binary options online brokerage in Ukraine (up until Tech Financials entrance) has opened up an opportunity for brokers expelled from other countries to open shop in this country. Hitherto, most binary options online traders have traded with offshore brokers; some regulated by CySEC and others not regulated. The local stock exchange and bond market are the only regulated markets in Ukraine. The National Securities and Stock Market Commission (NSSMC) is the agency placed in charge of regulation of these markets.
Regulation of binary options online in Ukraine is presently very weak. Apart from the NSSMC, the Ukrainian Centre for OTC Financial Instruments and Technologies Development is the government agency which provides guidelines under which financial markets can operate in Ukraine. It also helps shape government policy on financial market regulation. There are also a number of self-regulatory organizations. Most of the regulatory activity in Ukraine is centred on the local stock and bond markets.
Currency Pairs & Spread
Ukraine’s currency and stock markets is not featured in the global asset listings on binary options online platforms. Ukrainian binary options online traders are therefore left to trade whatever major, minor and exotic currency pairs they find on the platforms of the offshore brokers they deal with.
Tech Financials has only just set up shop in Ukraine. It remains unclear whether the company will brings its B2C business (OptionFair) to the Ukrainian market with more indigenous assets targeting the local population.
The entrance of Tech Financials into the Ukrainian markets definitely means that we will see more brokers with this trading platform targeting the local population. Hitherto, Ukrainian binary options online traders have used the turnkey platforms of SpotOption, O-Systems and Tradologic, found across a range of brokers in the market.
There is every reason to believe that bonuses will be offered to Ukrainian binary options online traders when they trade with unregulated brokers. Those traders who trade with CySEC-regulated brokers will not be able to access bonuses as this regulator now prohibits the provision of bonuses by its brokers.
Deposit and Withdrawal Options
The following transaction methods are available to Ukrainian binary options online traders:
- Bank wires: Without access to the SEPA bank wire system, Ukrainian binary options online traders have to rely on the use of currencies such as the Euro and US Dollar to fund their wire transfer processes. There is a special restriction on Eastern Ukraine as a result of sanctions imposed by the West; traders in that region may find it difficult to use their banks to wire money to brokers located in Western Europe.
- Digital wallets: Prior to the conflict with Russia in Eastern Ukraine, digital wallets of Russian origin such as Yandex.Money, WebMoney and Qiwi were used all over Ukraine. However, the Ukrainian government has banned the use of all Russian payment systems as from 2016. This limits Ukrainian binary options online traders to the use of international digital wallets such as Neteller, MasterPass, and Skrill.
- Card Options: Only Ukrainian citizens outside of Eastern Ukraine can use their bank-linked cards to make deposits and withdrawals on binary options online platforms. Usage of these bank cards is subject to approval by the binary options online brokers themselves.
Legality & Regulations
What are the legal considerations and regulatory conditions attached to the conduct of the brokerage and trading of binary options online in the Ukraine?
- Binary options in Ukraine are presently not regulated in Ukraine. This has allowed the entrance of some of the brokers expelled from Israel.
- Trading of binary options online is not restricted by the financial authorities in Ukraine. Most Ukrainians can open accounts and trade with offshore binary options online brokers.
- Tech Financials, a major provider of turnkey trading software and owner of the OptionFair binary options online brand, has relocated its software business previously based in Israel to Ukraine.
Here are the frequently asked questions that most people have about trading binary options online in Ukraine.
- Are binary options online legal in the Ukraine?
Answer: The trading of binary options online is not prohibited in Ukraine. This removes any legal obstacles to trading binary options online in Ukraine.
- Is it safe to trade binary options online in Ukraine?
Answer: The entrance of unregulated entities from Israel is going to pose new challenges for the Ukrainian trading population. Many of these relocated brokers were involved in activities that were deemed inimical to the progress of their clients. Without strong regulation to curtail their activities, it is doubtful if the Ukrainian binary options online market will be a safe place to trade.
- Is it possible for a Ukrainian citizen to trade binary options online with offshore brokers?
Answer: Ukrainian traders have been trading with offshore binary options online brokers for years now. It is possible that with the entrance of Tech Financials into this market, there may be a chance for a shift to occur.
- Are Ukrainian binary options online traders allowed to use digital wallets?
Answer: It is only possible to use international digital wallets to transact on binary options online accounts. The use of Russian e-wallets, which were very popular in the country, has been banned by the Ukrainian government.
- Do Western sanctions affect the ability of Ukrainian binary options online traders to transact freely on their accounts?
Answer: The sanctions were mostly applied to Eastern Ukrainian areas under separatist control. Ukrainians in other parts of the country can transact freely on their binary options online accounts.
Best Binary Options Brokers in Ukraine
The best binary options online brokers are those located in other well-regulated jurisdictions, and which support local Ukrainian payment channels for transactions on accounts. These brokers are listed below:
The entrance of Tech Financials and other Israeli binary options online brokers into Ukraine is a typical example of what industry watchers have always feared: banning binary options online is not a solution to the problem of scams in the industry. Banning binary options online is like trying to plug a hose with several leaks. If one leak is blocked, the water flows through another leaking point.
Some of these Israeli brokers were implicated in scams. So while the Israeli government has succeeded in “protecting” its citizens by banning the product, a new problem is in the works for countries like Ukraine which do not yet have a strong regulatory environment to control the excesses of some of these brokers.
It is in the best interest of Ukrainian binary options online traders to stick to the brokers listed above so as to protect their monies.