So many traders have long been concerned about one question - what will happen next with Binary Options? Many even believe that Binary Options will be closed altogether, not only in Russia, but in all other countries too.

In fact, the development of Binary Options is very visible even to the naked eye. In this article, I will tell you what to expect from Binary Options in the near future.

Binary options close?

No, Binary Options will not close. There are a lot of reasons for this:

• Binary options brokers registered offshore
• This business brings a huge income
• The evolution of binary options is much faster than the emergence of controlling laws

Let's look into this in more detail.

Do you think binary options brokers just register in Cyprus, Seychelles (offshore)? Of course no. Offshore registration allows brokers to carry out their activities and, to put it mildly, do not give a damn about the laws of other countries.

Even if brokerage is prohibited in a country, including Binary Options, this ban only applies to citizens of that country, but not to the broker itself. In Russia, for example, online casinos have been banned for a long time, but for some reason, we see their advertising more often than the faces of relatives. Roskomnadzor blocks online casino sites all the time, but then several more appear in their place - senseless attempts to somehow restrict their citizens from gambling.

Let's remember the prohibited torrent sites, where anyone can become a "pirate" and download everything for free, although this is a violation of copyright. But who's stopping that?! We all use the "blocked" social network "Telegrams" and do not experience any inconvenience. And you still say that we can block something. Funny!

But, back to our brokers. Due to the fact that they are registered offshore, any state is not able to prohibit the company's activities on its territory. There is an opportunity only to protect citizens, but not to close the broker. On the other hand, if the Binary Options broker has a very serious regulator, then the latter may require the broker to stop operating in the territory of any country where there is a ban on Binary Options. Such a case was once with broker IQ Option, which left Russia at the request of its CySEC regulator. No, Olymp Trade left for completely different reasons, although it was covered by the same motives.

As for the profit of binary options brokers, it is so big that no one thinks to close the "shop". Small companies that trade two and a half people a week can close, and even then not all - at broker INTRADE BAR for a very long time (for 2.5 years) there was no adequate number of clients, and now this broker is gaining momentum very quickly and attracting more and more traders. I'm sure things are looking up for him. But here are the big ones, which have several million customers, will remain in this area for a long time! Who will turn off the money faucet when you take 30-50% of customers from all over the world?! On the contrary, you need to squeeze out competitors and increase audience coverage.

But with the regulators of binary options brokers, in general, a very funny story. From the outside, their collared pursuit of brokers looks like chasing shadows. Only the regulators understood how and what to properly regulate, how brokers have a whole range of products that are not subject to regulation, as they have different trading mechanics. As a result, binary options brokers are always one, two or even three steps ahead of the regulators who are doing something for a very long time.

A similar situation was with the advent of CFD contracts - they are not the usual binary options, and have their own principles of trading and making a profit. And since these are not those Binary Options “Up / Down”, then they do not fall under the restrictions of the regulators.

Binary Options Brokers Race for Popularity

Since 2016, one stable trend can be traced in the conflict between binary options brokers - the one who retains and increases his audience will survive!

By 2014, there were over 800 binary options brokers on the market, now 90% of them are gone forever. The reason is very simple - so many binary options brokers appeared at a time when the world was at the peak of the popularity of binary trading. The competition was very strong, which means that everyone tried to snatch at least a piece of the total profit of all BO brokers. Needless to say, at that time, deceit and scammers were at every turn?!

It was at this time that one-day brokers appeared, who, having collected the money of traders, disappeared after a couple of months or even weeks. Really reliable brokers could be counted on the fingers of one hand (yes, this is still possible).

The year 2016 has begun and everything has changed a lot - traders have become very careful in choosing a binary options broker for their trading. This is what caused the departure of many fraudulent brokers - people simply stopped believing in them, and where there is no popularity and trust, there is no money from traders.

As a result, time has very strongly filtered honest brokers from fraudulent brokers. The remaining Binary Options brokers, which have at least some popularity among the raiders, quickly realized that the one who can keep his audience the longest will win and earn. What came out of it:

• Many binary options brokers have made the decision to treat their clients more honestly
• The number of blocked customer accounts has decreased significantly
• Payouts have become stable
• There are a lot of different types of options with different returns
• The trading platforms of Binary Options brokers have significantly improved - where before there was only a line chart and two buttons to open, a full-fledged price chart appeared there with the ability to analyze price movements
• In places, the yield for a correct forecast on standard options was increased
• Added cryptocurrencies for trading

Let's take as an example the same INTRADE BAR broker, which:

• Completely refused to verify accounts
• Refused various bonuses for his clients
• I made "instant" payments (within 10 minutes after submitting a withdrawal request)
• Uses the TradingView chart as a trading platform (a very good third party price chart used by a lot of Binary Options and Forex traders)
• Very often makes updates and innovations at the request of traders

A vivid example of how INTRADE BAR does everything to be trusted by traders. And traders really trust this broker and actively trade with him. But now you will decide that I chose a broker who tried very hard to "get out in front of people", so let's look at another example.

Binary Options Broker Quotex:

• Improved my trading platform
• Added the ability to conduct technical analysis of charts directly on the broker's trading platform
• Added a number of indicators for technical analysis
• Stably adds trading strategies that can be used on the trading platform of the broker itself - no third-party charts are required (not all strategies are good, but there are some very interesting and profitable ones)
• Stably pays out any amount to traders, and does not require verification for small payout amounts
• Added regular tournaments on demo account

Now this particular broker is very often chosen by traders for trading. And this is not surprising - the reputation of Quotex is very good, and the broker has earned its trust for several years of stable work.

There is another bright example among binary options brokers - Pocket Option:

• Initially, there was a huge number of assets with a very high return of 96% for a correct forecast (now, in some places, the return has been slightly reduced)
• The presence of a tool for copying trades of other traders
• The broker stands out from the others with its very interesting and profitable bonus program: bonuses for any actions on the broker’s trading floor, which can then be profitably exchanged for the necessary goodies in the form of a deposit bonus, risk-free transactions, increased profitability, and so on
• It is possible to try trading on a no deposit bonus
• Too many assets to trade, including cryptocurrencies

Nowadays, every binary options broker is trying to attract an audience with better trading conditions than competitors: for some it is increased reliability and the ability to give traders what they asked for so much; someone has stable improvements in the trading platform; someone focused on profitable bonuses and increased profitability for correct predictions.

What do we, traders, have from this whole situation? A lot of things! Most importantly, it has become very unprofitable for binary options brokers not to pay out what we have earned. Also, brokers try to do everything to please us - some do it better, some worse. In this situation, everything is interconnected - there is a continuous circle in which we feel good if the broker suits us, and the broker feels good if he suits his clients. Of course, the requirements are always growing, and no one has canceled the competition, so we are getting ready for new interesting innovations.

Smart contracts in binary options trading

The competition between brokers is now so strong that sometimes it is very important to come up with something new and stand out from the mass of monotonous brokers. It is important to show something new, fresh, but at the same time very attractive and reliable. It succeeds, far from everyone.

Not so long ago, several binary options brokers saw the light of day, which allowed trading on the Trader vs. Trader system - this is a very serious step away from the usual concept of Binary Options Trader vs. Broker. In the latter case, the trader always trades against a binary options broker, and as a result of this trade, he takes money from the broker or gives him his money.

In the "Trader vs Trader" concept, the broker acts as an intermediary who provides clients with their trading platform and takes a fixed percentage from each transaction. Simply put, traders make a profit due to the fact that other traders lose their funds - money is constantly moving between clients' accounts.

Someone will now say that it was the same with ordinary binary options brokers - traders have always traded against traders. It is true, but the scheme was slightly different and less reliable:

• Inexperienced traders consistently lose their money in trading and give it to the broker
• Experienced traders take their profits from the binary options broker too
• To get your money, you still need to get paid from the broker, because. any broker does not like to share his earnings (but, gritting his teeth, he still pays, albeit with resentment in his heart)

In the Trader vs. Trader concept, things are a little different:

• Inexperienced traders lose their money and give it to more experienced traders
• The broker stands on the sidelines and takes a percentage of each transaction made
• The broker does not care who and how much will withdraw from the platform - the volume of trade is important for him, the larger it is, the more profit the broker will receive from interest

But what will make such trading even more reliable? And then we slowly approached the topic of Smart contracts.

A smart contract or smart contract is an algorithm that allows traders to keep all their money in their wallets and not in the accounts of a binary options broker. The smart contract works like this:

• The trader makes a forecast on the direction of the price and invests some amount
• Smart contract submits an application to the trader's wallet to write off the investment amount
• If the deal turned out to be profitable for the trader, then the smart contract sends the money back to the trader's wallet immediately after the deal is closed, but together with the profit
• If the trader's prediction is not correct, then the smart contract sends money to other traders or the binary options broker

Now there is only one Binary Options broker that allows you to use smart contracts in Binary Options - the P2PTrade broker. Smart contracts themselves are a new step in the development of Binary Options. The advantages of smart contracts in trading cannot be underestimated:

• Total safety of your funds - all money, with the exception of the amount invested in the current transaction, is stored only on your electronic wallets
• Excellent reliability of smart contracts - all transactions can be tracked on third-party sources, so you will always know where your investments are
• Increased confidence in the binary options broker - the broker does not keep your money in his accounts, which means that he is not interested in draining you

With the start of using Smart contracts in Binary Options, everyone is in the black: the trader is confident in the reliability of his funds, the broker gains more confidence from clients.

But back to the P2PTrade broker - what is this broker, and how do smart contracts work with it?

• The P2PTrade broker works on smart contracts of the Ether cryptocurrency (Ethereum or Ethereum), i.e. all transactions are opened only when investing in the form of Ethereum cryptocurrency
• The broker works on the concept of "Trader against Trader" or, as the broker itself calls this concept, "Peer to Peer"
• Registration with the broker is completely absent, because there is no need for it - connected the wallet and you can trade
• Account verification is also missing at 100%
• The broker takes quotes from several very popular providers, so they can always be verified on the side
• A trader's profit for a correct forecast is not limited - it can even reach 10,000% of the invested amount (for example, if you trade against the crowd)
• For each completed transaction, the broker takes 8% of the total investment of traders as a service fee
• P2PTrade broker's smart contract collects from the wallets of all traders the amount of their investment before the start of the transaction
• After the transaction is completed, the smart contract sends 8% of the commission to the broker, and transfers the rest of the amount to the wallets of traders who made the correct forecast

Thus, a binary options broker never keeps traders' money - there are simply no deposits. Another very important advantage of smart contracts can be considered the lack of registration and account verification - instead, there is only one button that connects a third-party wallet to the trading platform and that's it. In addition, due to the lack of registration, the broker will never be able to block a certain trader, even if there is a great desire to do so.

Let's summarize - smart contracts give us:

• Complete refusal of deposits - all money is kept only in our wallets, and not in the paws of binary options brokers
• The work of smart contracts can always be tracked on third-party resources
• The broker will never be able to block the user (and it is not required, actually)
• The broker earns from the commission for completed transactions, and not by draining its clients
• Smart contract itself creates a request to write off investments in a transaction from your wallet, and after closing the transaction, it returns the amount of profit back to your wallet
• Complete refusal of registration and account verification

The only negative, in my opinion, is that so far, smart contract trading has been implemented only on the Ether cryptocurrency. But the first step has already been taken and this is a very important step. In a year or two, brokers will definitely appear who will use smart contracts with the currencies we are used to for investing: rubles, dollars, euros…

Comparison of a smart contract broker with a conventional binary options broker

I know that there is a lot of information and it is quite difficult to digest, so I suggest you take a look at the comparison of a broker that works on smart contracts (unfortunately, we only have one - P2PTrade) and the binary options broker familiar to everyone (let it be the same Intrade Bar, for example). For your convenience, I have highlighted in green more favorable conditions, and in red - conditions that are inferior to a competitor:

Binary Options Broker	Intrade Bar	P2P Trade
Storage of funds	On accounts with a binary options broker	On trader's e-wallets
Investment in a deal	After replenishing the trading account	With smart contracts
Profit per correct prediction	Limited and always known in advance - up to 94%	Unlimited, can reach more than 10000% of the amount investments
Quote providers	Thomson Reuters	Binance.com, Bitfinex, Kraken
Withdrawals	Within 10 minutes after submitting a withdrawal request (up to 3 working days, depending on the withdrawal method)	Absent - the money goes to the trader's wallet immediately after closing the deal
Account registration	Takes 1-2 minutes	Absent
Account verification	Absent (but may be asked - available in the user agreement)	Absent
Trade concept	"Trader vs Broker"	Trader vs Trader
Account blocking	Only in the event of a very serious violation of the user agreements or fraud	Impossible in fact
Broker earnings	From draining traders	Commission in the amount of 8% from each transaction
Trading platform	Trading View - complete technical analysis of charts	Own - allows you to only open deals. about any technical analysis is out of the question
Bonuses for traders	None (broker's decision), but, if necessary, possible	Missing - I have no idea how they can be implemented on smart contracts
Tournaments among traders	Absent, but may appear - everything you need for this There is	None - difficult to implement
Assets for trading	Currency pairs, commodities	So far, only cryptocurrency (it is planned to add currency couples)
Trading Account Currencies	RUB, USD	Ethereum (Ether)
Regulation	Absent	Missing and not required
Reliability	High, but everything rests on the broker's word of honor	Excellent - the broker cannot deceive the client in any way
Demo account	Eat	Eat

As you can see, in many ways a smart contract broker outperforms even such a popular and honest binary options broker as Intrade Bar . This once again confirms the fact that Smart contracts are a new step in the development of binary options trading. Although this is not so beneficial for the broker itself (traders earn much more from the drain than from a fixed percentage for each transaction), but for the trader it is a guarantee of the safety of their funds and greater confidence in the broker.

Progress does not stand still even in Binary Options

Smart contracts have been talked about for a long time - many experienced traders are aware of all the advantages of smart contracts. But now they appeared only in 2019, and then, so far, only with one broker. On the other hand, in 2014, everyone dreamed that brokers would treat their clients honestly and pay what they earned, instead of blocking the account. It has happened, although not everywhere yet, but now most binary options brokers are ready to pay out everything you have earned.

Everyone dreamed of smart contracts in Binary Options - the first broker has already appeared and is available to everyone. Let now there is not much, but it is only a matter of time. For example, I, like many of you, would like to trade smart contracts with a ruble or dollar wallet connected to the trading platform (PayPall, ADVCash, Web Money), and not Ether. But, we all see the desire of binary options brokers to please their clients, so such trading is not far off!