Will Nordics become the main market for binaries?

BinaryOptionsNow | Published on June 23, 2017 at 3:27 pm

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The binary options industry is under attack all over the world, from the Americas to Asia and now, Europe. Many countries in the aforementioned regions are issuing warnings against trading binary options, and clients are pulling out. However, there’s still an untapped market in the Nordics where these brokers had previously not penetrated. Naturally, you would expect them to market their services there, and with good reasons.

Why the Nordics could be a good market for binaries

Binary options brokers love to enter new markets because there is very little competition from other brokers. There are currently tens if not thousands of brokers dealing with binary options, and the industry has developed fierce competition. The European area is a very ripe market, and the brokers have had to provide other extra enticements just to beat the competition. In the process, they have had to compromise their bottom lines, but they would not have to within a new environment.

So far, according to the data from SuomalaisetKasinot.online, binary options trading has been very limited within the Nordics, and this may be the perfect opportunity. Other factors also make the Nordics the ideal target for binary options, such as the low tax rates that have left the residents with money to spend. Sweden, for example, experienced tax overpayments, and the government had to reimburse those who paid too much.

In addition, gambling is already very popular in the Nordics despite the tough laws, and since binary options are not that different from gambling, these gamblers may seek alternative sources of income in the industry, especially with proper education.

Nordics binary options main market

Could the Nordics provide a good market?

Not really. The Nordics are known for their tough financial regulation and a religious attitude that looks down on gambling activities. On the side of attitude, this may only be a slight impediment to the growth of the binary options industry in the Nordics. As you may recall, despite a socially negative attitude towards gambling, the practice still went on and eventually the government conceded to the need by its residents. If binary options were to marketed and made available to the Nordics, then the residents may still participate.

With regulations, however, that could be a major hurdle for the industry’s penetration in the Nordics. There is already a global war against binary options, and the Finnish financial regulator and other regulators from the region are also bound to follow suit. There are a variety of measures these regulators could implement to prevent both the penetration and acceptance of the industry in the region. For example, many countries have issued warnings against trading binary options, alerting people that the binary options brokers should not be trusted. More have completely banned the advertisement of binary options and a few have completely banned the trade.

Still, we have seen that the Nordics can still find ways to work around their government restrictions. Besides, binary options trading is decentralized and there isn’t a regulatory body that can actually prevent the trade. However, there is another possible hurdle, capital gains tax. Earnings from trading binary options and other financial markets are taxed as capital gains tax at about 30%, which is higher than most other countries. Such a high tax could diminish the appeal of trading the binary options market.

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