Binarex – The new Tradologic binary options exchange

Tradologic announce Binarex

Tradologic, the world’s leading binary options software provider, have started a new project that intends to bring more options to the binary trading sector. As a result of recent upheaval within the binary options industry, Tradologic’s goal is to bring transparency to the market. The company have been concentrating on setting up a monitored binary options exchange named Binarex. This product intends to reduce the conflicts of interest between brokers and traders, making the industry more sustainable in the long term.

The exchange traded model

With the company’s new exchange traded binary options, traders can obtain better quotes and prices (and therefore returns) while brokers will still be earning a profit either way, no matter if their client loses or makes money. An exchange platform would charge a percentage based commission fee to traders, who will then make a profit from the losing trade on the other side of their deal. These processes mirror the exchanges operated within the Forex trading industry, with some firms already starting to phase out the market maker models and into a more straight-through processing model, where the customer’s trades are diverted through the over-the-counter foreign exchange market. The company’s goal is to address the worries of traders and regulators. Companies like Cantor Exchange and Nadex already have products that are managed by the US Commodity Futures Trading Commission (CFTC), so exchange-traded binary products are used by American retail traders already.

Binarex Regulation

Tradologic’s CEO Michael Golod has stated that he sees Binarex as a viable business model that provides clean and transparent terms for all parties. This model has been put under scrutiny via inspections from regulators and discussed at length. His company remains in talks with several financial regulators both in and outside of the European Union, and has been met with a warm reception. Many of these regulators inform him that he should expect to be met with a much more welcoming regulatory setting.

Earlier in the year, the company partnered with Cantor Exchange, which allowed their white labels to access the American market through an approved Exchange Commission deal. Tradologic is expecting to launch this model at the Finance Magnates London Summit, which takes place at The Brewery on 14th and 15th November. Binaryoptions.co.uk will be there to get all the details on this new offering.

With any exchange trade, the success will depend on the liquidity in the market. Low volume can lead to deals not being matched, or poor value trades. With a firm on the scale of Tradologic involved, the liquidity should be high, giving traders a good opportunity of making the deals they want. As the platform grows, so should the volume.