Binary Options Trading in Finland
Binary options trading is on the rise around the world. Finland’s financial industry is no different. With the increased desire to trade binary options in Finland, traders are seeking information regarding legality, whether it’s regulated, trading platforms to be used, etc. In this article, we hope to shine light on all the questions Finnish investors might have regarding binary options trading in Finland.
Finland is a very secure and financially stable country, making it an excellent choice among binary options traders. The country has received a triple-A credit rating from all the big credit rating agencies in the world. This can be thanked to the very strong financial regulation the country has in place; the Finnish Supervisory Authority (FIN-FSA). This regulation provides investors with a certain level of security and peace of mind when trading with brokerages in Finland under this regulation. However, this regulatory authority does not impose any regulations on the trading of binary options in Finland. Thankfully, there are no laws stating it is illegal, and it is considered an investment practice rather than gambling in Finland.
Recommended Binary Brokers in Finland
Currency Pairs & Spread
Common currency pairs in Finland are much the same as other countries who trade binary options. Most traders’ trade what are called ‘Major’ currencies. These currency pairs include: AUD/USD, EUR/USD, GBP/USD, JPY/USD, USD/CHF, and USD/CAD. These currency pairs have the tightest spreads due to their frequent trade volume. A currency pair which is unique to Finnish traders is the Finland Markka (USD / FIM). The Finland Markka is the national currency of Finland, hence making it a popular currency to be traded. This currency pair falls under the category of ‘Exotics’, which includes other currencies such as: USD/SEK, USD/ZAR, USD/MXN, USD/SGD. These currency pairs have wider spreads, but are still popular among some traders. Another common group of currency pairs traded in Finland are called ‘Crosses’. These currency pairs often include currencies such as; EUR, JPY, GBP, and CHF among others. They are traded more frequently than ‘Exotics’ but less frequent than ‘Majors’ which makes the spread size to be somewhere in between the two opposing currency pair groups.
Trading Platforms
Finnish investors have no shortage in options when it comes to binary options platforms to choose from. There is a slew of international platforms/brokerages to trade with. Many of the best ones are regulated by reputable agencies in other countries as well as from the FIN-FSA. When choosing a platform to trade on in Finland it is best to go with one that is regulated by the Finnish Supervisory Authority, or at least some other reputable authority. Finnish investors are still protected by the regulation of another country if the brokerage is licenced and regulated by them.
In addition to regulated platform, all the best trading platforms should offer mobile and desktop applications which provides investors access to the platform from anywhere. As well, the platforms will offer intuitive design and usability for executing trades, technical and analytical analysis, and market research. These binary options platforms also boast powerful and technical software for a seamless trading process. In Finland, like most of the world, there is no shortage of reputable platforms to choose from. That is if you’re willing to go with an international brokerage platform.
Bonuses
Bonuses are not something new to binary options. This is the case for Finnish brokerages as well. There are various bonuses that companies offer their clients, enticing them into signing up, making more deposits, or simply to keep them trading with their platform. Some of the most common types of bonuses are as follows:
- Welcome Bonus – This is the most common type of bonus, usually receiving an amount of money just for joining a brokerage and making an initial deposit.
- No Deposit Bonus – Another bonus, like the welcome bonus, rewards you with money just for signing up and doesn’t even require a deposit.
- Mobile Bonuses – This is a bonus for downloading a brokerages mobile application and using it.
- Refer a Friend Bonus – Receive money for getting a friend to sign up, they may be required to make an initial deposit.
There is a wide variety and different variations of these bonuses, but they always result in the trader saving or gaining some money for trading on the platform.
Deposit and Withdrawal Options
Today, there are many ways to deposit and withdrawal your money. You can be paid from anywhere in the world at any time with various methods. Finnish brokerages are no exception to this, accepting various forms of deposit and withdrawal methods. The most common methods include:
- Bank Wire Transfers – Most anyone from anywhere in the world can complete a bank wire transfer. There are no restrictions with the use of bank wire transactions. This method proves to be very popular among Finnish investors.
- Credit Card – This option proves to be quite simple for investors, and is widely accepted in Finland. There is a high percentage of trust using credit cards for deposits and withdrawals in Finland. As well, many Finnish investors prefer to use a debit-visa card.
- Securities Transfers – An option available for those who intend on making very large deposits or withdrawals. It depends on the account type and the minimum deposit amount.
- E-Wallet Providers – Another popular method among Finnish investors. Popular online money transfer options in Finland include; PayPal, Neteller, and Skrill.
Legality & Regulations
The trading of binary options in Finland is legal, just as it is in the rest of Europe. There are no rules and regulations pertaining to binary options, however there are no laws stating it is illegal. It is viewed as an investment practice in the eyes of the government and the financial regulatory authority of Finland which is known as the Finnish Supervisory Authority (FIN-FSA). This regulatory power oversees the financial markets in Finland and works in accordance of the central bank of Finland. It is recommended that Finnish investors choose a binary options broker who is regulated under the FIN-FSA or another reputable agency from another country. Finnish investors are still protected by the regulation of another country if the brokerage is licenced and regulated by them. It is common for Finnish investors to choose foreign brokerages due to their popularity and superiority to some smaller brokerages in Finland.
FAQ
- Are binary options legal in Finland?
Yes, the trading of binary options is legal in Finland. However, like most of Europe, the practice is unregulated.
- Are binary options regulated in Finland?
No, it is unregulated. However, the brokerages that offer binary trading should be regulated by the FIN-FSA or another regulatory authority.
- How can I trade binary options in Finland?
First you must open an account with an investment firm offering binary options trading. Its is quite simple, and can be done online in a few simple steps. Some companies do not even require a deposit to start trading.
Best Brokers in Finland
In terms of binary options brokers in Finland, there are very few if any. Finnish investors looking to trade this way must look to international brokerages.
Conclusion
This article has overviewed the binary options trading industry in Finland in hopes to shine some light on the grey areas surrounding this lucrative investment method. As of now, there are no regulations pertaining to binary options trading in Finland, but with the increased popularity of the practice, we are likely to see some regulation in the future. Besides being unregulated, Finnish investors still have numerous options when it comes to international binary options brokers.