I believe China has the highest growth potential and we should see that in the second half of 2013 as well as in 2014.
Victoria, Mahe (PRWEB) April 12, 2013
Daphnis Group's recent study about the development of the Binary Options market has showed that emerging markets like Russia and China are growing faster than more established markets like France, USA and the UK.
This comes as no surprise says Jason Moore, the company's leading binary options analyst, as developed markets have a slower growth rate: "We all know that binary options are very popular in France, UK, Australia and the US, and are also on a growing trend in many European countries. However, the countries that showed the higher growth rates are Russia and China. This is very natural at this stage because those markets were lagging behind and there is a lot of room for growth. I believe China has the highest growth potential and we should see that in the second half of 2013 as well as in 2014."
One of the main factors that contributed to the growth of the binary options market in Russia was the growing number of specialized portals that are spreading the information about the benefits of binary trading. The study also presented some of the most influential binary options portals in Russia.
The Russian version of Binary Options Brokers named "Brokery Binarnye Opciony" was the first major portal to enter the Russian market and is still one of the most appreciated by the Russian traders. It was the first portal to rank Russian brokers and to present the basics of binary options trading to the Russian audience.
Another very successful portal in Russia is "Binarnye Opciony". This educational portal is the Russian version of the famous Binary Options World, and it presents the most detailed information about how binary options function. The website is also very popular for its strategy section where it presents both basic trading systems as well as advanced trading strategies.
Other important Russian portals that were featured in the study are "Binarnye Opciony" and "Binarnye Opciony Brokery".
The study also observed that the development of the Russian market has lead to the development of local binary options brokers. Dragon Options is considered the most important broker that focuses primarily on the Russian market. However, the market is still dominated by big international brands like Anyoption, Opteck, Zoom Trader or Option Bit. Jason Moore points out that "More and more brokers are developing their Russian division and specialized sales team because they see the enormous potential of this market. Russians are well known for their interest in currency trading and the retail forex market is very well developed there, so it is no surprise that binaries are growing very fast here."
The most interesting part of the study was that about the Chinese market. "Language barriers have stopped brokers from entering the Chinese market from the very beginning. Another reason why this market lags behind is the difficulty to access local payment methods for foreign brokers. Those two factors were the main reason why nobody seemed interested about the Chinese market in the past. But things are starting to change." says Mr. Moore.
The Chinese market seems unexploited compared to the mature European markets and the potential for growth is huge. China has plenty advantages when it comes to potential client base. The study cited that "Internet access is growing fast in China, and so does the number of people interested in investment and online trading. The well known appetite for gambling of the Chinese coupled with the ban of online gambling in China leaves room for a huge market when it comes to binaries. They are simple investment products that appeal to both professional investors and casual risk takers.".
There are also specific challenges when it comes to entering the Chinese market. Brokers must find a way to implement local payment methods in order to succeed, and have strong anti-fraud measures. Developing professional call centers for the local market may also prove difficult, as staff training will be more difficult due to the language barriers.
The growth of the local market was sustained by the growing number of binary options portals in Chinese. The most successful of them is "http://www.xn--4kqz9dx34aeea.net", a portal dedicated exclusively to China. Another big player on the Chinese market is "http://www.binary-options-brokers.com/cn/", the Chinese version of the well known Binary Options Brokers. The study also includes "http://www.binaryoptionschina.org" among the leading Chinese binary options websites.
As for the brokers, the main broker entering the Chinese market is without a doubt Anyoption. Other important names include 24 Bulls, Zoom Trader and Option Rally. The study also mentions a local broker that focuses only on the Chinese market, and that is Trader 711.
Apart from the detailed information on the growth of emerging markets, the study also discusses the ever changing landscape of the European markets. Some countries have become more strict about regulation, and Italy has recently forced internet service providers to ban access to the most notorious unregulated binary brokers. Following this move, many brokers have started the regulation process in order to protect themselves from similar developments in other European markets. The unstable legal environment in Europe and the United States concerning binary options has been another major factor for the slowing growth in those markets and for the increased focus on emerging markets as brokers try to diversify their client portfolio and hedge the risks of exiting some markets because of tougher regulatory environment.