One of the biggest mistakes many novice traders make is that they do not view their trading as a business. Instead, they see it as a kind of casino where you can hit a big jackpot quickly. Therefore, many of them behave like lovers of gambling, without delving into analysis and calculations.
However, those who nevertheless intend to achieve real success as a trader need to take this occupation as a serious business and nothing else. Indeed, this is actually the case, and traders who know and follow these rules ultimately reap significant benefits. So is trading legal?
How it Works
The main task of a trader is the same as for any other businessman – to try to attract more income from profitable trades, which will cover expenses from unprofitable trades and current expenses. If this can be done, it means that the business is profitable. But, if costs get out of control and the trader loses more money than he earns, then the trading business is failing.
Trades take place on stock exchanges – a specialized trading platform that provides traders with a place to sell and buy securities, and also monitors the security of personal data. All trading participants are required to comply with the rules and fulfill the obligations established by a particular exchange.
The main clients of the exchange are credit institutions and brokerage companies through which private and corporate investors carry out exchange operations. Trading on the stock exchange is conducted primarily via the Internet.
The securities market in many countries is designed in such a way that private investors do not have direct access to the exchange. All transactions on their behalf are carried out by stock brokers who act as intermediaries between the exchange and the investor. Therefore, finding a good broker is a top priority for any novice investor. Each broker must be licensed as a professional securities market participant.
Features of Trade in Different Countries
Today, trading is one of the simplest and most accessible types of trading, which is why it is very popular all over the world. At the same time, in different countries and regions, the attitude towards trading is different, both on the part of users and on the part of legislative and regulatory bodies.
Here, not only the opinion of users plays a role in the popularity of trading in a particular country. The evolving market regulation in developed countries creates an increasingly stringent regulatory framework, up to complete bans, in the context of which interaction between traders and brokers is not beneficial and not convenient for both. For instance:
– In the USA, trading is allowed only within specialized platforms that are affiliated with major stock exchanges. So access to them for ordinary users is simply impossible without huge capital.
– In Europe, the problem is similar, although some brokers work there, but for the legal representation of services, a CySEC license is required, while the regulation conditions of the Cypriot Commission are becoming more severe from year to year, which repels potential brokers.
– Trading is also prohibited in all authoritarian countries and states with a high level of influence of legislative and executive bodies. Among them: Belgium, China, North Korea, Israel, Cuba, Myanmar and many others.
– In some countries, for example, in France, Great Britain and other about 30 countries, are not classified as an OTC instrument, but equated to gambling, with all the ensuing restrictions. For example, there is a ban on advertising. However, as we found out with you at the very beginning, trading is not a gamble, but a classic business.
The legal framework largely explains the current state of affairs with the geography of active binary traders. Imperfect regulations, at least somewhere played into the hands of the inhabitants of Africa, South America, India and other Asian countries, as well as post-Soviet countries.
Today, in the vast majority of countries in these regions, there are no legal restrictions on the activities of brokers and traders. And in countries such as Russia, Kazakhstan, Ukraine and Moldova, strategies for the development of financial legislation envisage considering the regulation of over-the-counter trade only in ten years.
Is Olymp Trade Legit?
Olymp Trade is legal in most countries and is regulated by the International Financial Commission, of which it is a Category A member as a safe and reliable broker.
The platform is legal and operates in India, South Africa, Egypt, Kenya, Nigeria, Ghana, and other countries in Africa and Asia and has legal status in almost all countries. Whether you are in India, Pakistan, Malaysia, Indonesia, or elsewhere in the world, Olymp Trade provides the same opportunities for trading.
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This broker is available in almost all countries