P R O D U C T D I S C L O S U R E S T A T E M E N T

B I N A R Y O P T I O N S

© 2016 GO MARKETS PTY LTD. ALL RIGHTS RESERVED. ABN 85 081 864 039. AFSL 254963.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | i

TABLE OF CONTENTS 1. IMPORTANT INFORMATION .................................................................................................... 1

NOTES AND DISCLAIMER ....................................................................................................................... 1

HOW TO CONTACT US........................................................................................................................... 1

ELECTRONIC VERSION OF THE PDS ...................................................................................................... 1

UPDATED INFORMATION ...................................................................................................................... 1

TREATMENT OF OVERSEAS APPLICANTS .............................................................................................. 1

RESTRICTIONS ON THE DISTRIBUTION OF DOCUMENTATION .......................................................... 1

APPLICATIONS ....................................................................................................................................... 2

PRODUCTS COVERED IN THIS PDS....................................................................................................... 2

CALL RECORDINGS ................................................................................................................................ 2

2. TERMS AND CONDITIONS ....................................................................................................... 2

3. ADVICE ...................................................................................................................................... 2

4. SUMMARY TABLE ...................................................................................................................... 2

5. KEY FEATURES OF GO MARKETS’ BINARY OPTIONS .............................................................. 4

BINARY OPTIONS .................................................................................................................................. 4

CALCULATING PROFIT AND LOSS ........................................................................................................ 5

6. BENEFITS OF TRADING GO MARKETS’ BINARY OPTIONS ...................................................... 5

7. RISKS OF TRADING BINARY OPTIONS .................................................................................... 6

DERIVATIVES RISK ................................................................................................................................. 6

MARKET VOLATILITY ............................................................................................................................. 6

FOREIGN EXCHANGE RISK .................................................................................................................... 6

GO MARKETS’ RISK/COUNTERPARTY RISK .......................................................................................... 7

ASIC BENCHMARK – COUNTERPARTY RISK ......................................................................................... 7

ELECTRONIC PAYMENT PROVIDERS RISK ............................................................................................ 8

DEPOSIT ................................................................................................................................................. 8

CLIENT’S MONEY ................................................................................................................................... 8

CREDIT RISK ........................................................................................................................................... 9

POSSIBLE ILLIQUIDITY OF THE MARKET ............................................................................................... 9

TERMINATION OF BINARY OPTIONS BEFORE THE EXPIRY TIME ........................................................ 9

OPERATIONAL RISKS ............................................................................................................................. 9

CONSEQUENCES OF YOUR DEFAULT ................................................................................................... 9

OUR RIGHT TO EXERCISE CERTAIN DISCRETIONS .............................................................................. 9

INFORMATION WE MAKE AVAILABLE................................................................................................... 9

EXECUTION RISK ................................................................................................................................. 10

ELECTRONIC TRADING PLATFORM RISK ............................................................................................ 10

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REGULATORY RISK .............................................................................................................................. 10

NO COOLING OFF ............................................................................................................................... 10

SUPERANNUATION FUNDS ................................................................................................................ 10

8. BINARY OPTION’S TRANSACTION EXAMPLES ..................................................................... 10

CALL BINARY OPTIONS ....................................................................................................................... 10

PUT BINARY OPTIONS .......................................................................................................................... 11

9. ASIC REGULATORY GUIDE 227 DISCLOSURE BENCHMARKS ................................................ 11

10. OPENING AN ACCOUNT ...................................................................................................... 15

11. THE BINARY OPTION’S ACCOUNT ....................................................................................... 15

WHAT IS A BINARY OPTION’S ACCOUNT? ......................................................................................... 15

HOW ARE THE FUNDS YOU DEPOSIT WITH US HELD? ..................................................................... 16

HOW DO YOU GET FUNDS IN AND OUT OF YOUR BINARY OPTION’S ACCOUNT? ....................... 16

DO YOU GET INTEREST ON YOUR BINARY OPTION’S ACCOUNT BALANCE? .................................. 17

12. OPERATING AN ACCOUNT....................................................................................................17

HOW DO YOU OPEN A BINARY OPTION’S POSITION? ...................................................................... 17

ACCEPTANCE OF ORDERS .................................................................................................................... 17

HOW DO YOU CLOSE OUT A BINARY OPTION’S POSITION? ............................................................ 17

GO MARKETS’ TRADER PLATFORMS .................................................................................................... 17

13. DEPOSIT REQUIREMENTS ......................................................................................................17

WHAT IS DEPOSIT? ............................................................................................................................... 17

INITIAL DEPOSIT .................................................................................................................................. 18

YOU ARE RESPONSIBLE FOR SATISFYING THE DEPOSIT REQUIREMENTS ....................................... 18

14. FEES AND OTHER COSTS ...................................................................................................... 18

ASSOCIATED FEES ................................................................................................................................ 18

CURRENCY CONVERSION CALCULATION FEE................................................................................... 18

DEPOSIT ............................................................................................................................................... 18

INTEREST ON ACCOUNT BALANCES ...................................................................................................19

INTERNATIONAL TRANSFER FEES ........................................................................................................19

OTHER FEES AND COSTS ......................................................................................................................19

15. TAXATION ............................................................................................................................. 19

TAXATION ADVICE ...............................................................................................................................19

16. DISCLOSURE OF INTEREST ................................................................................................... 20

17. PRIVACY POLICY ................................................................................................................... 20

18. DISPUTE RESOLUTION .......................................................................................................... 20

FINANCIAL OMBUDSMAN SERVICE CONTACT DETAILS (“FOS”) ..................................................... 20

19. ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING ........................... 21

20. CLIENT AGREEMENT ............................................................................................................. 21

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GLOSSARY ................................................................................................................................... 22

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1. IMPORTANT INFORMATION

NOTES AND DISCLAIMER

Terms used in this Document have defined meanings and you should refer to ‘Glossary’ in the last section of this document.

This Product Disclosure Statement (“PDS”) is dated 5th of July of 2016 and was prepared by GO Markets Pty Ltd. All the financial services mentioned in this Document are provided by GO Markets Pty Ltd ABN 85 081 864 039 (“GO Markets”, “GO”, “we” or “us”) unless stated otherwise.

The purpose of this Document is to help you decide whether Binary Options are appropriate for your financial objectives, situation and needs. It has not been prepared to take into consideration your current financial needs or objectives. This PDS does not constitute a recommendation, advice or opinion. It is general information only.

Binary Option products are considered speculative products which carry significantly greater risks than non-geared investments, such as shares. You should not invest in Binary Option products unless you properly understand the nature of Binary Option products, and are comfortable with the attendant risks. You should obtain financial, legal, taxation and other professional advice prior to entering into a Binary Option transaction to ensure binary options are appropriate for your objectives, needs and circumstances.

The taxation consequences of Binary Option transactions can be complex and will differ for each individual’s financial circumstances, and your tax adviser should be consulted prior to entering into a Binary Option transaction.

GO Markets also recommends that you seek independent advice to ensure this is appropriate for your particular financial objectives, needs and circumstances.

No aspect of this product has been endorsed or approved by the Australian Securities and Investments Commission (“ASIC”) or any party or market referred to in this PDS. This PDS has not been lodged with ASIC and is not required by the Corporations Act to be lodged with ASIC. ASIC takes no responsibility for the contents of this PDS.

Nothing in this PDS should be considered as a recommendation to trade in Binary Options or any other particular product in any way.

GO Markets does not guarantee the investment performance of Binary Option products or the investment performance of the underlying markets or instruments. Note that past performance is no indication or guarantee of future performance.

Use of examples in this PDS are provided for illustrative purposes only and do not necessarily reflect our actions or determinations or an investor’s personal circumstances.

HOW TO CONTACT US

Name: GO Markets Pty Ltd

AFSL/ABN: 254963/85 081 864 039

Address: Level 50 120 Collins Street Melbourne VIC 3000

Phone: +61 3 8566 7680

Fax: +61 3 9225 5067

E-mail: support@gomarkets.com.au

Website: www.gomarkets.com.au

ELECTRONIC VERSION OF THE PDS

This PDS documentation is available on the internet at www.gomarkets.com.au in electronic format. Any person receiving this documentation electronically who requests a paper copy will be sent a paper copy of the PDS and Financial Services Guide (“FSG”) from GO Markets.

UPDATED INFORMATION

All clients shall be bound by the contents of this PDS. Information which is not materially adverse to Investors may be subject to change from time to time and will be updated on GO Markets’ website at www.gomarkets.com.au. If you require a paper copy of any updated information, please contact GO Markets. GO Markets may issue a supplementary or replacement PDS as a result of certain changes, which shall be available on our website or shall be distributed in electronic form as required.

TREATMENT OF OVERSEAS APPLICANTS

This PDS does not constitute an offer or invitation in any place outside Australia where, or to any person to whom it would be unlawful to make such an offer or invitation.

The distribution of this PDS (electronically or otherwise) in any jurisdiction outside Australia may be restricted by law and persons who come into possession of this PDS should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable law.

The information in this PDS is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or legislation.

The offer to which this PDS relates is available to persons receiving the PDS (electronically or otherwise) in Australia, who provide an Australian address for service when making their application.

The GO Markets AFSL authorises GO Markets to provide financial services to people in Australia, however, GO Markets complies with the obligations arising from our AFSL in respect of financial services provided to all of our clients, including those who reside overseas.

RESTRICTIONS ON THE DISTRIBUTION OF DOCUMENTATION

Distribution of this PDS outside Australia may be restricted by law. This PDS is not intended to, and does not constitute an offer of securities or recommendation to trade in Binary Option products at any place which, or to any person to whom, the making of such offer would not be lawful under the laws of that jurisdiction.

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APPLICATIONS

When you complete an electronic Binary Options application you will need to electronically agree that you have read and understood the Client Agreement (if applicable) Terms and Conditions, FSG and this PDS before submitting your application. When applying for a binary options account you agree to be bound by the contents of this PDS.

PRODUCTS COVERED IN THIS PDS

This is a PDS for derivatives and Binary Option products provided by GO Markets. These are over-the-counter (“OTC”) options that pay a pre-determined, fixed amount, depending on whether or not a financial event occurs by a certain time.

Binary Options can have only one of two possible outcomes and allow you to take a simple “Yes” or “No” approach.

For example, will the AUD/USD finish above the current price at the end of the hour? If the answer is “Yes”, the Binary Option settles in-the-money. If the answer is “No”, the Binary Option settles out-of-the-money.

GO Markets’ products do not result in the physical delivery of the underlying instrument/market. All of the Binary Option products are cash adjusted or Closed Out by the client i.e. there is not a physical exchange of one product for another.

CALL RECORDINGS

Please note that your call may be recorded for training and monitoring purposes. Any advice provided to you by our representative is general advice only, and does not take into account your objectives, financial situation or needs.

2. TERMS AND CONDITIONS Information provided to you in our Financial Services Guide (“FSG”) and this PDS is important and is binding on you. Additional legal terms governing our relationship are detailed in the Client Agreement (for corporate, trust and supernanuation accounts only). If you are applying online you must complete the application in its entirety and then electronically submit the application to GO Markets for processing. If you complete a hardcopy application you must complete the application in its entirety, sign and return the application form via e-mail, fax or by post, and then have your Account approved by GO Markets.

Please note that GO Markets reserves the right to refuse to open a Binary Option’s Account for any person. We also reserve the right to suspend or terminate your binary trades at any point in time without notice. GO Markets may take any action we deem reasonable to recoup losses incurred as a result of “toxic trading” with the use of electronic algorithmic trading systems or any other means utilised to exploit technical deficiencies or palpable errors.

GO Markets does not guarantee the performance, return of capital from, or any particular rate of return, of a Binary Option product or transaction. Clients should only invest in risk capital (that is, capital you can afford to lose). Please note that the historical financial performance of any Binary Option or underlying instrument/market is no guarantee or indicator of future performance.

Please also note that the examples provided in this PDS are only provided for illustrative purposes only and do not necessarily reflect current or future market or product movements, the values that GO Markets will apply to a trade, nor how such trades impact your personal circumstances. The figures used in the examples do not necessarily reflect your personal circumstances and do not restrict in any manner the way in which GO Markets may exercise its powers or discretions. Those examples do not constitute general or personal financial product advice to any person reading this PDS.

GO Markets only accepts Binary Options’ order instructions via the electronic trading platform and will not accept order instructions via any other means.

You are required to access the electronic trading platform on a daily basis to confirm that any order instructions have in fact been received by us, re-confirm all orders that you place with us, review order confirmations we provide, to ensure their accuracy, and monitor your deposit obligations. Any order discrepancies identified must be reported to us immediately.

GO Markets will provide all clients, via the electronic trading platform or the website, with access to both daily and historical account statements allowing you to check your open positions, deposit requirements and cash balances, and trading confirmations. Should you have any queries relating to your statements we encourage you to contact us.

3. ADVICE GO Markets is authorised to buy and sell Binary Option products and to give advice in relation thereto.

It should also be noted that we only provide you with GENERAL ADVICE, which does not take into account your particular needs, objectives and circumstances. No personal advice will be provided to any client under any circumstances.

This PDS does not take into account your investment objectives, financial situation or needs. Accordingly, nothing in this PDS should be construed as a recommendation by us or any other person to invest in Binary Options, or any other financial product. You are responsible for the selection of the Binary Option you transact with us. We make no representation about the performance of any Binary Option. The performance of the Binary Option will depend on the investment decisions made by you.

4. SUMMARY TABLE On the next page, you will find the summary of the key features and characteristics involved in dealing in our Binary Options.

In addition to this summary, you should also ensure that you have read and understood the content of this PDS, terms and conditions, the Client Agreement (if applicable) and our FSG.

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ISSUE SUMMARY Who is the issuer of this PDS and the Binary Options?

GO Markets is both the issuer of this PDS and the provider of Binary Options.

What financial products do we provide?

Binary Options.

What are Binary Options? Binary Options are over-the-counter (“OTC”) options that pay a pre-determined, fixed amount, depending on whether or not a financial event occurs by a certain time. Binary Options can only have one of two simple possible outcomes, “Yes” or “No”.

A Binary Option (also known as a “Digital Option” or “All-or-Nothing Option”) is termed a “Derivative”, which is a financial instrument whose value, or price, is derived from an Underlying Market. It is in effect a synthetic instrument completely constructed to obtain value from movements in a financial market. Binary Options give the Holder the right to profit from moves in the Underlying Market.

What is a Position? A position is a Margin FX Contract entered into by you under the terms and conditions and PDS.

A Binary Option is issued “over-the-counter”. What does this mean?

Over-the-Counter (“OTC”) means that you do not trade in Binary Options through an exchange or market; rather, it is a transaction between you and us. This means you can only enter into transactions in relation to our products with us. You therefore do not have the protections normally associated with trading on a regulated market. It is not possible to close a Binary Option by giving instructions to another provider, broker or Australian financial services licensee.

What charges are payable when dealing in Binary Options?

The fees associated with Binary Options are the price of the Binary Option itself. You will not be charged a fee or commission when you acquire any Binary Option product. GO Markets reserves the right to pass on, if any, administration charges such as (but not limited to) credit card merchant fees and bank wire transfer fees.

How do I open an Account? You need to read this PDS, the terms and conditions, our FSG and Client Agreement (if applicable), and then complete an Application Form via our website.

What is the minimum balance to open a live trading account?

The minimum balance to open a Live Account is AUD$200 (or trading account currency equivalent). Unless otherwise specified, all dollar amounts referred to in this PDS are denominated in Australian Dollars.

How do you deal in Binary Options with us?

You may place orders to deal in Binary Options ONLY through GO Markets’ Trading Platform, from a computer connected to the internet or from your mobile telephone.

It should be noted that GO Markets does not accept orders or instructions from you through any other means, such as e-mail or telephone, unless we have previously agreed with you to do so. It is possible for a third party to place orders on your behalf provided that a written Power of Attorney form or authority has been received and accepted by us.

What are “Call” and “Put” Binary Options?

A “Call” Binary Option is a Binary Option that yields a profit for the buyer when the price of the Underlying Market (the “Strike Price”) at the Expiry Time is “HIGHER” than the Expiry Price. Call Binary Options are for those clients who are bullish, and wish for the Underlying Market to “up”.

A “Put” Binary Option is a Binary Option that yields a profit to the buyer when the price of the Underlying Market (the “Strike Price”) at the Expiry Time is “LOWER” than the Expiry Price. Put Binary Options are for those clients who are bearish, and wish for the Underlying Market to go “down”.

How do I close-out a position? Binary Options are automatically closed out upon expiring. At no point during the duration of the trade can the Binary Option positions be closed manually.

How do we deal with your money? Money which you deposit with us will be regulated in accordance with the requirements of the Corporations Act.

What is my “Total Equity”? Your “Total Equity” is the aggregate of: the current cash balance in your Account; and your current unrealised profits and losses.

What is my “Free Equity”? Your “Free Equity” is your Total Equity LESS your current Total Deposit Requirement.

The Free Equity is the amount that you may withdraw from your Account or use to cover additional deposit requirements.

What is “Deposit”? “Deposit” is initially the amount that you must have in your Account to enter into a Binary Option transaction with us.

The level of deposit required to open and maintain a position is called the “Initial Deposit Requirement”.

The sum of your deposit requirements for all of your open Positions is called the “Total Deposit Requirement”.

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How are payments made in and out of my Account?

You may deposit funds by PayPal, credit card, electronic transfer, B-Pay® or by cheque. All funds must be Cleared Funds in your Account before they are made available for you to use in dealing in Binary Options. Payments using B-Pay® are not Cleared Funds in your Account at the time of use of B-Pay®. Generally, cleared funds are received in your Account 24 hours after the use of B-Pay®. We will pay you through electronic transfer or cheque.

Do I receive interest on moneys held in my Account or pay interest on moneys I owe to you?

GO Markets DOES NOT pay interest on credit balances in currency ledgers on your Account. However, we will charge interest on any debit balances in a currency ledger on your Account. Any amounts of interest payable to us will be deducted from any amounts payable by us to you.

Are there any “Financing” or “Swap” Charges or Benefits?

There are no charges or benefits associated with Binary Options.

What are the key benefits of Binary Options?

Some of the key benefits for Binary Options offered by us in this PDS are set out in Section 6.

What are the risks of Binary Options?

Binary Options are derivative products which are speculative, and carry significantly greater risks than non-geared investments, such as shares. You may incur losses to the extent of your total exposure to us and any additional fees and charges that apply. You should therefore obtain your own independent financial, legal, taxation and other professional advice as to whether Binary Options are an appropriate investment for you. More information about the risks of trading Binary Options is set out in Section 7.

What procedures are in place to deal with your complaints or concerns?

GO Markets Pty Ltd has an internal dispute resolution process in place for clients and we are also a member of the Financial Ombudsman Scheme (“FOS”), an external complaints resolution body.

If you wish to make a complaint please see Section 18 for more detailed information. What are the taxation implications of entering into Binary Options?

The taxation consequences of Binary Option transactions depend on your personal circumstances.

Some general taxation consequences are set out in Section 15. The taxation consequences can be complex and will differ for each individual’s financial circumstances.

We recommend that you obtain independent taxation and accounting advice in relation to the impact of Binary Option transactions and products on your particular financial situation.

What are your trading and office hours?

GO Markets’ Trading Hours Trading hours for Binary Options will depend on the relevant Underlying Instrument Market’s hours of operation, and are set out on our website.

GO Markets’ Office Hours Our office hours are from Monday to Friday, 7:00am to 7:00pm AEST/AEDT, subject to public holidays.

What if I need further information? You should speak to your financial advisor, or, alternatively, you can contact us by: Phone: +61 3 8566 7680 Email: support@gomarkets.com.au Website: www.gomarkets.com.au

What additional fees and charges are payable in respect of Binary Options?

Whilst we endeavour to include all fees and charges, in some circumstances you may incur fees and charges which are set out in this PDS. Please see Section 14 for more detailed information.

5. KEY FEATURES OF GO MARKETS’ BINARY OPTIONS

BINARY OPTIONS

Binary Options are over-the-counter (“OTC”) derivatives that pay a pre-determined, fixed amount, depending on whether or not a financial event occurs by a certain time. Binary Options can only have one of two possible outcomes and allow you to take a simple “Yes” or “No” approach.

A Binary Option is termed a “Derivative”, which is a financial instrument whose value, or price, is derived from an Underlying Market. Examples of Underlying Markets are gold, silver, currencies, securities, indices, etc. It is fundamentally any instrument that is “tradable”.

In effect, Binary Options are synthetic instruments completely constructed to obtain value from movements in a financial market. Binary Options give investors the right to profit from moves in the Underlying Market.

A “Call” Binary Option enables investors to profit from an Underlying Market that is going up. It yields a profit for the investor when the price of the Underlying Market (the “Strike Price”) at the Expiry Time is higher than the Expiry Price.

A “Put” Binary Option, conversely, enables investors to profit from a downward movement of the Underlying Market. It yields a profit to the investor when the price of the Underlying Market (the “Strike Price”) at the Expiry Time is lower than the Expiry Price.

Binary Options do not require the physical exchange of one product for another. Binary Options will always be cash

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settled and the Binary Options’ Account will be credited or debited according to the profit or loss of the trade you place.

Binary Options may be settled in either “American” style or “European” Style.

American Options can be exercised at any time up to and including the Expiry Time.

European Options can be exercised ONLY on the Expiry Time, not before.

Investors who trade in Binary Options may do so for a variety of reasons, two of which are: Speculation – An attempt to profit from fluctuations in

the price or value of the Underlying Market; Hedging – An attempt to hedge exposure of a current

holding in an Underlying Market.

GO Markets offers Binary Options to customers on individual shares, stock indices, currencies, commodities and other Binary Option products as may be notified from time to time.

How Binary Option transaction works is illustrated in examples in Section 8.

The Binary Option is a contract between you and GO Markets Pty Ltd, which means you and GO Markets Pty Ltd will act as principals to the transaction and have a direct credit exposure to each other. You do not trade through an exchange and are not afforded the protections normally associated with exchange-traded Derivatives, such as guarantee agreements.

CALCULATING PROFIT AND LOSS

The potential profit or return that a Binary Option offers is certain and known before the purchase is made. As the product is binary in nature, there can only be two possible outcomes, a “Fixed” amount or “Nothing at All”.

When trading a Binary Option, your risk is limited to the value you place in the “Investment” tab.

In essence, a “Payout” figure will be displayed after you have defined your initial investment. “Payout” means the total monetary profit return. This is a sum of your initial investment and the “Specific Percentage”, which is based on your initial investment and is pre-determined by GO Markets, and may differ according to the time to expiry.

Below is the summary of GO Markets’ current “payout” rates in accordance with each time frame in normal market conditions. These rates may be reduced during periods of low volatility, but the rates will always be displayed before you enter your trade.

Please also note that the payout rates are subject to change (with or without notice) at any time.

TIME EXPIRY PAYOUT RATE

60 seconds 80%

2 minutes 75%

5 minutes 75%

10 minutes 75%

15 minutes 75%

20 minutes 70%

30 minutes 70%

1 hour 70%

6. BENEFITS OF TRADING GO MARKETS’ BINARY OPTIONS Options and Derivatives in general can be complex and primarily geared towards professional and institutional investors.

Binary Options are much more transparent and easy to understand than traditional options and derivatives since you are speculating on a simple probability of directional movement.

There are significant benefits associated with trading GO Markets’ Binary Options including, but not limited to:

1. Limitation of Loss The maximum loss you may suffer from trading Binary Options is capped at the initial amount of money you invested. There is no possibility of you losing more than your initial investment in the purchase of a Binary Option.

The level of risk associated with trading Binary Options is thus, always certain, in contrast to CFDs, Futures, other type of options or derivatives where losses can increase exponentially.

In Binary Options, there are no margin calls therefore you will not need to worry about stop losses that are normally associated with when you’re trading other leveraged financial products such as Margin FX or CFDs.

2. Hedging You can use Binary Options to hedge exposure of a current holding in the Underlying Market.

3. Speculation You may use Binary Options to speculate on the price of the Underlying Market Instrument, for example a currency or commodity, without the need to buy or sell the Underlying Market Instrument itself.

Unlike buying an actual commodity or currency where you expect the price to rise, with Binary Options, you are allowed to make a speculation on whether the Underlying Market price will increase or decrease in value without actually buying or selling the underlying itself.

For example, you can go “Long” or “Short” by buying a Call Binary Option if you think that the Underlying Market will go up or buying a Put Binary Option if you think that it will go down.

4. Trade in Small Amounts The GO Markets system enables you to make transactions in small amounts. You can start using GO Markets account even with an opening balance as little as AUD $50.

When trading in a Binary Option offered by GO Markets, you may deposit the sum that suits you, or the amount which is in line with the amount you are willing to risk.

With GO Markets, you are in full control of your funds.

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Fundamentally, the Deposit Requirement for a Binary Option is an amount equal to your maximum loss on that Binary Option.

5. Market Positions and Strategies You can use Binary Option’s trading strategies to profit from both rising and falling markets. However, given the uncertainty of market movements, there is no guaranteed that the employment of the Binary Option’s trading strategies will lead to profits and from time to time, the employment of trading strategies may lead to losses.

It is important to note that some trading strategies are more complex than others and may have different levels of risk associated with them.

6. Profit Potential in Flat Markets Binary Options, by their nature, have a fixed payout. Therefore, there are always trading opportunities when the markets are trading flat.

7. Access to Markets in Real Time When using GO Markets, you gain access to a trading system which is active and provides you with the opportunity to trade in real time on any global financial market which is open for trading.

This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.

8. Real-time Streaming Quotes and Tradable Prices The GO Markets’ execution system uses the latest highly sophisticated technologies in order to offer you up-to-the-minute quotes.

You may check your Accounts and Positions in real-time and you may do so 24 hours a day on any global market which is open for trading and make a trade based on real-time information.

Subject to satisfying the execution limits, all orders are automatically accepted without intervention from GO Markets.

The execution limits are set out on our website at www.gomarkets.com.au or are available by calling us. The execution limits are subject to change at any time.

7. RISKS OF TRADING BINARY OPTIONS This section DOES NOT detail ALL risks applicable to Binary Options but rather seeks to highlight the key significant risks involved in trading in Binary Options.

Binary Options are speculative in their nature and involves a high degree of risk, including the risk of losing your entire Deposit Requirement.

GO Markets therefore recommends that you obtain independent professional advice and carefully consider whether Binary Options are appropriate for you in light of your knowledge, experience and financial needs and circumstances. Trading in Binary Options should not be undertaken unless you understand and are comfortable with the risks of geared investments.

Accordingly, you should not rely on this PDS or use it as the sole or principal basis for your investment decision in relation to GO Markets’ Binary Options.

DERIVATIVES RISK

The risk of loss in trading derivatives can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.

In considering whether to trade in Binary Options, you should be aware that you have the potential to suffer a risk of losing your entire Deposit Requirement to establish or maintain a position.

MARKET VOLATILITY

The Global Financial Markets are subject to many influences which may result in rapid fluctuations and reflect unforeseen events or changes in conditions with the inevitable consequence being market volatility.

External market forces including, but not limited to, changing supply and demand relationships, governmental, agricultural, commercial, or trade programs and policies, as well as national and international political and economic events and the prevailing psychological characteristics of the marketplace can influence the markets and prices to change very quickly.

There is a risk that you may suffer a loss as a result of the price of the underlying market moving in a direction that is not anticipated or unfavourably.

Furthermore, due to the “All or Nothing” payout, an investment in Binary Options involves the risk of the Binary Option expiring with no value at all.

Given the potential levels of volatility in prices and the financial markets, it is recommended that you closely monitor your positions with GO Markets at all times. Financial markets are highly volatile and are very difficult to predict. Due to such volatility, no such Binary Option offered by GO Markets, or any other financial services provider, may be considered as a safe trade. The Financial Markets also enter periods of low volatility during which payouts may be reduced, terminated or temporarily suspended.

All derivatives involve risk and there is no trading strategy that can eliminate it. You could lose all of the Initial Deposit that you make to establish or maintain a Binary Option’s position.

In cases where you are speculating, we suggest that you do not risk more capital than you can afford to lose. A good general rule is never to speculate with money which, if lost, would alter your standard of living.

FOREIGN EXCHANGE RISK

Your profits and losses may be affected by fluctuations in the relevant foreign exchange rate between the time the order is placed and the time the Binary Option is closed out.

For example, what may appear as a profit from the Binary Option position may actually constitute as a loss in the chosen base currency due to currency fluctuations. Until the foreign currency balance is converted to the base currency, fluctuations in the relevant foreign exchange rate may affect the Unrealised Profit/Loss made on the Binary Option transaction.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 7

Foreign currency markets can change rapidly. Exchange rates depend on a number of factors including, for example, interest rates, currency supply, and demand and actions of government. In some situations, exchanges of currency may be suspended. There is always operational risk associated with the currency conversion calculation process that is undertaken for Binary Options. For example, disruptions in our operational processes such as communications, computers and computer networks, or external events may lead to delays in the execution and settlement of a transaction.

GO MARKETS’ RISK/COUNTERPARTY RISK

As GO Markets is the Market Maker, i.e. the issuer of the Binary Option products described in this PDS, GO Markets Pty Ltd is the counterparty to every binary contract.

You will have an exposure to GO Markets Pty Ltd in relation to each contract as is common to all OTC financial market products. You are therefore exposed to the financial and business risks, including credit risk, associated in dealing with GO Markets Pty Ltd and reliant on GO Markets’ ability to meet its counterparty obligations to you to settle the relevant contract.

Our ability to fulfil our obligations is linked to our financial wellbeing, which is commonly referred to as Credit or Counterparty risk. You must make your own assessment of our ability to meet our obligations.

GO Markets Pty Ltd has not been rated by an external credit rating agency. If we were to become insolvent, we may be unable to meet our obligations to you. GO Markets Pty Ltd may become unable to operate its Binary Options market as a result of a regulatory impediment (for example, GO Markets Pty Ltd ceasing to hold an Australian Financial Services Licence (“AFSL”) or because ASIC imposes a stop order on the PDS issued by GO Markets Pty Ltd).

GO Markets Pty Ltd may also enter into arrangements with third party execution and clearing providers for the facilitation of transactions and settlements, and avail monies received for deposit requirements and settlements to such providers for this purpose.

Accordingly, clients are indirectly exposed to the financial risks of our counterparties and organisations with which GO Markets Pty Ltd holds client’s funds. If the financial condition of GO Markets Pty Ltd, or assets of our counterparties or the parties with which we hold client assets deteriorate, then clients could suffer loss because the return of the client capital could become difficult. In other words, in the event there is a deficit in the client money (trust) account and GO Markets Pty Ltd becomes insolvent or is otherwise unable to pay the deficiency, there is a risk that you may not receive all the money held by GO Markets Pty Ltd on your behalf in that account.

You are reliant on GO Markets’ ability to meet its counterparty obligations to you to settle the relevant contract. GO Markets Pty Ltd may choose to limit this exposure by entering into opposite transactions as principal in the wholesale market in relation to its exposures with clients. In addition, GO Markets Pty Ltd must comply with the financial requirements imposed under its AFS Licence. If GO Markets Pty Ltd defaults on its obligations, investors may

become unsecured creditors in an administration or liquidation and will not have recourse to any underlying assets in the event of GO Markets’ insolvency.

Please contact us in writing at the address/e-mail provided herein, should you wish to obtain a free-of-charge copy of GO Markets Pty Ltd.’s latest audited financial statements which may assist in your assessment of credit risk.

ASIC BENCHMARK – COUNTERPARTY RISK

We have a Counterparty Risk policy which includes carefully selecting hedging counterparties.

Before engaging additional liquidity provider counterparties, GO Markets will conduct due diligence. Prospective counterparties are subject to a review which addresses all pertinent factors such as:

a) Legal power of counterparty to enter into the contract; b) Sufficient or enforceable legal documentation; c) Compliance with regulatory requirements; d) Management and security of documents.

One factor in selecting them is whether the hedging counterparty is of sufficient financial standing.

Criteria taken into account by GO Markets when determining financial standing are as follows:-

a) Whether the counterparty is appropriately licensed and regulated by an independent body in the relevant jurisdiction;

b) Whether the counterparty has strong financial and compliance (including risk management) resources;

c) Whether the counterparty have been independently rated by a ratings house (e.g. Standard & Poor’s); and

d) Whether the counterparty have a proven track record in relation to OTC products.

GO Markets counterparty due diligence processes include:

The due-diligence process to the ‘know your customer’ obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act);

Up to date company financials including annual returns for the past 3 years, and those of parent companies where applicable;

Obtaining credit reports from leading credit agencies (such as Veda);

GO Markets exposure limits reflect a mix of economic and financial indicators (eg, balance sheet ratios; current and forecast profitability; industry factors);

Non-financial indicators (management quality, business strategy, reputational risk and any evidence from prior business relationships).

GO Markets recognises that it is essential to have an ongoing understanding of the health of our counterparties at all times. As such, to ensure ongoing sufficient financial standing, GO Markets undertakes proactive measures, including semi-annual due diligence on all existing counterparties.

Our primary hedging counterparties are Saxo Bank A/S (authorised and regulated by Finanstilsynet in the EU), IS Prime Limited (authorised and regulated by the Financial

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 8

Conduct Authority in the United Kingdom), ADS Securities L.L.C (licensed by the Central Bank of the United Arab Emirates), CFH Clearing Limited (authorised and regulated by the Financial Conduct Authority in the United Kingdom) and Invast Financial Services Pty Ltd (regulated by ASIC in Australia). We may appoint new counterparties, or change our counterparties, from time to time. We can provide a copy of our hedging policy to clients and prospective clients free of charge upon request. This policy is updated regularly. We may appoint new counterparties, or change our counterparties, from time to time. See the hedging information on our website for an up-to-date list of hedging counterparties.

We also have a written policy relating to maintaining adequate financial resources. This policy sets out how we monitor compliance with our financial requirements, as well as how we conduct stress testing to ensure we hold sufficient liquid funds to withstand significant adverse market movements.

You can obtain a summary of our latest financial statements by contacting us on the details at the start of this PDS.

ELECTRONIC PAYMENT PROVIDERS RISK

The demand for payment methods external from the traditional banking system has increased significantly, often due to lower costs and faster deposit times.

Concerns in relation to EPP’s are that they may operate outside of the traditional banking regulation, (depending on their jurisdiction); and they are not currently included in ASIC’s list of Authorised Deposit Institutions (ADI’s).

GO Markets may be exposed to the health of EPP’s, similar to counterparty risk. The sum of funds held at an EPP, if unrecoverable, may impact on our ability to meet our obligations to you. GO Markets therefore treat Electronic Payment providers in a similar way to our counterparties.

We have an EPP policy to mitigate the risks associated with the use of Electronic Payment Provider’s (EPP) in light of increasing reliance on them. Mitigation measures in place include:-

i. Robust and regular due diligence of EPP’s, their jurisdiction, regulation, track record etc;

ii. Reduction of the amount of funds held with the EPP by regular withdrawals back to our client trust accounts.

All EPP’s used by GO Markets are subject to approval by the Board of Directors following satisfactory completion of the due diligence and approval process.

Before engaging additional EPP’s GO Markets will conduct due diligence. Prospective EPP’s are subject to a review which addresses all pertinent factors such as:

a) Legal power of the EPP to enter into the contract; b) Sufficient or enforceable legal documentation; c) Compliance with regulatory requirements (if applicable); d) Management and security of documents.

GO Markets will conduct due diligence, to determine:

a) Market reputation;

b) Sufficient financial standing (including obtaining accounts and credit report to determine credit rating);

c) Strong financial and compliance (including risk management) resources (if a regulated entity);

d) Verification of identity of the entity via customer due diligence (KYC) principles.

GO Markets recognises that it is essential to have an ongoing understanding of the health of our EPP’s. As such, to ensure ongoing sufficient financial standing, GO Markets undertakes proactive measures, including biannual due diligence on all existing EPP’s.

When undertaking the due diligence process, consideration is given to the following by GO Markets:

The due-diligence process to the ‘know your customer’ obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act);

GO Markets exposure limits reflect a mix of economic and financial indicators (eg, balance sheet ratios; current and forecast profitability; industry factors);

Non-financial indicators (management quality, business strategy, reputational risk and any evidence from prior business relationships);

Whether legal documentation in place is sufficient and enforceable;

Up to date company documentation (including company extract, annual returns for the past 3 years);

Credit reports.

GO Markets conduct regular withdrawals from EPP’s and only maintain an amount which is unlikely to disrupt the ordinary course of business.

GO Markets set a maximum amount of funds that can be held with an EPP at any one time. This figure is expressed as a percentage of total client deposits. The figure/ percentage is calculated to strike a reasonable balance, having regard to the high reliance on EPP’s. The percentage does not affect your ability to quickly withdraw their funds, whilst mitigating against the possible default of an EPP.

DEPOSIT

Each open Binary Option position will require you to maintain a certain amount of deposit with us.

A failure to meet our deposit requirements is an event of default and we have the discretion to immediately refuse or to accept an order requested by you, or close out your Binary Option positions.

You must therefore regularly monitor your own deposit requirements when trading Binary Options.

Pease note that GO Markets reserves the sole discretion to determine how much deposit is required.

CLIENT’S MONEY

Your funds are held in GO Markets’ client trust account and are comingled with the funds of all of our other clients.

Subject to the Corporations Act, your funds kept in GO Markets’ client trust account can be used for the purposes of

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 9

covering payments for other clients and meeting GO Markets’ margin requirements with its OTC Derivatives Providers.

This means that you may potentially suffer losses as a result of default by another client where money from the client trust accounts is applied to cover that client’s payment obligations. Moreover, you may not receive all the money held by GO Markets on your behalf in the client trust account if there is a deficit in the client trust account and GO Markets becomes insolvent or is otherwise unable to pay the deficiency.

CREDIT RISK

Binary Options are traded over-the-counter (“OTC”), which means that they are not traded via a regulated exchange or market and not covered by the protections for exchange-traded derivatives arising from any domestic or international exchange rules (such as guarantee or compensation funds).

Binary Options are a transaction between you and GO Markets. Our obligations to make payments in respect of the Binary Option are considered ‘unsecured obligations’ of GO Markets, which means that you are subjected to GO Markets’ credit risk.

If we were to become insolvent, it is possible that a scenario may evolve that we would become unable to meet our financial obligations to you.

Investors must do their own due diligence and make their own assessment of GO Markets’ ability to meet its obligations in respect to the above mentioned situation.

POSSIBLE ILLIQUIDITY OF THE MARKET

A “Liquid” market is one which generally has sufficient trading activity to satisfy both buyers and sellers.

An “Illiquid” market, on the other hand, is generally one in which it is difficult to find bids and offers.

Some commodity markets are extremely illiquid. GO Markets thus reserves the right to postpone in offering a price for a Binary Option until a more liquid market develops.

TERMINATION OF BINARY OPTIONS BEFORE THE EXPIRY TIME

GO Markets’ Binary Options are European Style Binary Options which cannot be ‘closed out’ or ‘sold’ prior to the Expiry Time.

Therefore, you may not be allowed the flexibility to take advantage of movements in the Underlying Market and thus, take advantage of a profitable situation and close out, realising a profit prior to expiry.

OPERATIONAL RISKS

There are operational risks in Binary Option transactions.

The operation of your Binary Option’s account and the transaction of Binary Options is reliant on the continuing operation of, among other things, the GO Markets’ Trader platforms, our computers, the Internet, and your personal computer.

Disruptions, failures or delays in any of these may lead to delays in execution and settlement of Binary Option

transactions. While we will endeavour to provide you with access to trade on the GO Markets’ Trader platforms generally 24 hours a day, from 7:00 AM AEST, Monday, to 7:00 AM AEST, Saturday, there may be disruptions in the availability of the platforms.

To the maximum extent permitted by law, no responsibility is taken for any liability incurred in connection with any disruption, failure or delay of the GO Markets’ Trader platforms or any related infrastructure. We have outsourced the operation of the GO Markets’ Trader platforms to a third party and we rely on this third party to ensure the systems are updated and maintained.

CONSEQUENCES OF YOUR DEFAULT

If you fail to maintain the required margin, pay other amounts payable to us or fail to perform any obligation under your binary options account, we have extensive powers in accordance with our terms and conditions (and the Client Agreement, if applicable) with you to take steps to protect our position.

You also indemnify us for certain losses and liabilities, including, for example, any default by you in accordance with our terms and conditions. Further our liability to you is expressly limited. You should obtain advice to make sure you understand these matters.

OUR RIGHT TO EXERCISE CERTAIN DISCRETIONS

You should note that there are a number of provisions in our terms and conditions that confer discretion to us which could affect your Binary Options.

These discretions include: To set the minimum deposit requirement to open a Binary

Option position; and To close your Binary Option positions, limit the total

value of the Binary Options that you can open, refuse an order or terminate the agreement between us if certain circumstances arise, including where we: > decide in our absolute discretion and provided that we

have given you prior written notice of such decision; or

> reasonably consider it necessary for the protection of our rights.

You should further note that clients do not have the power to direct us in the exercise of our discretions.

INFORMATION WE MAKE AVAILABLE

GO Markets may make information available to you that is generated by us or obtained from third parties. This includes, but is not limited to, market information such as financial market data, quotes, news, analyst opinions and research reports, graphs or data.

This market information: is not intended to be advice; is not endorsed or approved by GO Markets and we do not

guarantee the accuracy, timeliness, completeness or correct sequencing of the market information;

is available as a service for your own convenience only;

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 10

may quickly become unreliable for various reasons including, for example, changes in market conditions or economic circumstances; and

is not necessarily up to date.

Except as required by law, we do not warrant any results from your use or reliance on the market information. We may discontinue offering this market information at any time without notice.

EXECUTION RISK

A delay in execution may occur for various reasons, such as technical issues with your internet connection to our trading servers.

The GO Markets’ Trader Platforms may not be maintaining a constant connection with our trading servers. In those circumstances, the price offered by us may change before we receive your order. If you place an order and the price changes before the order is received, the order will be accepted by us at the new price. This means the price at which your order is accepted may be different from the price you were quoted.

We cannot predict future price movements and our quotations are not a forecast of where we believe currency prices will be at a future time.

ELECTRONIC TRADING PLATFORM RISK

You shall be responsible for providing and maintaining the means by which to access the electronic trading platform, which may include without limitation a personal computer, a modem and telephone, or other access line.

While the internet and the World Wide Web are generally reliable, technical problems or other conditions may delay or prevent access thereto. If you are unable to access the internet and thus, the electronic trading platform, it will mean you may be unable to trade in a Binary Option product offered by GO Markets when desired and you may suffer a loss as a result.

Should the system be unavailable, clients may place their closing orders via telephone with a representative of GO Markets.

Furthermore, in unforeseen and extreme market situations, such as an event like September 11, or a global catastrophe, GO Markets reserves the right to suspend the operation of the electronic trading platform or any part or sections of it.

In such an event, GO Markets may at its sole discretion (with or without notice), close out your open contracts at prices it considers fair and reasonable at such a time. GO Markets may impose volume limits on client accounts, at its sole discretion.

You should note that you do not have the power to direct us in the exercise of our discretions.

Please also note that such measures would only be implemented in extreme market conditions, and such discretion only reasonably exercised in the best interests of the client.

REGULATORY RISK

Changes in taxation and other laws, government, fiscal, monetary and regulatory policies may have a material adverse

effect on your dealings in Binary Option transactions, as may any regulatory action taken against GO Markets Pty Ltd.

NO COOLING OFF

There are no cooling-off arrangements for Binary Option transactions. This means that when GO Markets arranges for the execution of a Binary Option position, you do not have the right to return the product, nor request a refund of the money paid to acquire the product.

SUPERANNUATION FUNDS

It should be noted that complying superannuation funds are subject to numerous guidelines and restrictions in relation to their investment activities which are contained in the Superannuation Industry Supervision Act 1993, and associated regulations and regulatory guidance material.

Without being an exhaustive list, following are some of the issues that should be considered by a Trustee of a complying superannuation fund: Restrictions on borrowing and charging assets and

whether dealing in over-the-counter Derivative products would breach those borrowing and charging restrictions;

The purpose of dealing in over-the-counter Derivative products in the context of a complying superannuation fund’s investment strategy as well as the fiduciary duties and other obligations owed by Trustees of those funds;

The necessity for a Trustee of a complying superannuation fund to be familiar with the risk involved in dealing in over-the-counter Derivative products and the need to have in place adequate risk management procedures to manage the risks associated in dealing in those products; and

The consequences of including adverse taxation consequences if a superannuation fund fails to meet the requirements for it to continue to hold complying status.

8. BINARY OPTION’S TRANSACTION EXAMPLES The examples below are for illustrative purposes only.

The rates and figures quoted are hypothetical and do not represent actual rates or figures.

CALL BINARY OPTIONS

You are of the opinion that AUD/USD will be above 1.4060 in 60 seconds. You will attempt to benefit from this speculation by entering into an “Up” Binary Option with a 60 seconds Expiry Time.

Assuming that your Initial Deposit investment is USD $25, you would be required to have USD $25 in equity in your Account in order to enter into this Binary Option’s transaction. If you do not have the Initial Deposit Requirement, the order will not be accepted by GO Markets.

Upon conclusion of the Binary Option’s position, if the AUD/USD bid price (as shown in the Binary Option’s ticket window) is above the opening price of 1.4060, you then make a profit.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 11

For example, if the AUD/USD rises and the AUD/USD is now quoted at 1.4065, you will make the following profit: USD $43.75 ($25 plus (75% of $25)).

If, at the conclusion of the trade, the AUD/USD bid price is equivalent to the opening price of the trade, the trade is considered a ‘draw’, and the original deposit of $25 will be returned to you.

However, if, at the conclusion of the trade, the AUD/USD bid price is lower than the opening price, you then lose the entire USD $25 investment.

Please note that once a Binary Option’s position is closed out, no further deposit is required.

PUT BINARY OPTIONS

You are of the opinion that AUD/USD will be below 1.4060 in 60 seconds. You will attempt to benefit from this speculation by entering into a “Down” Binary Option with a 60 seconds Expiry Time.

Assuming that your Initial Deposit investment is USD $25, you would be required to have USD $25 in equity in your Account in order to enter into this Binary Option’s transaction. If you do not have the Initial Deposit Requirement, the order will not be accepted by GO Markets.

Upon conclusion of the Binary Option’s position, if the AUD/USD bid price (as shown in the Binary Option’s ticket window) is below the opening price of 1.4060, you then make a profit.

For example, if the AUD/USD falls and the AUD/USD is now quoted at 1.3358, you will make the following profit: USD $43.75 ($25 plus (75% of $25)).

If, at the conclusion of the trade, the AUD/USD bid price is equivalent to the opening price of the trade, the trade is considered a ‘draw’, and the original deposit of $25 will be returned to you.

However, if, at the conclusion of the trade, the AUD/USD bid price is greater than the opening price, you then lose the entire USD $25 investment.

Please note that once a Binary Option’s position is closed out, no further deposit is required.

9. ASIC REGULATORY GUIDE 227 DISCLOSURE BENCHMARKS ASIC Regulatory Guide 227 requires issuers of OTC derivative products to retails investors to publish certain information addressing a range of disclosure benchmarks.

These benchmarks are required to be addressed on an ‘if not, why not’ basis, and are intended to assist retail investors to properly understand the complexity and risks of trading in OTC derivative products, particularly with regards to leverage (this does not apply in Binary Option’s transactions).

There are 7 (seven) disclosure benchmarks that GO Markets are required to address, all of which we are of the view, have been met by GO Markets’ compliance team, with each benchmark is addressed in the following table:

BENCHMARK DESCRIPTION

HOW DOES GO MARKETS MEET THIS BENCHMARK?

RELEVANT SECTIONS IN THE PDS

Client Qualification

GO Markets has minimum qualification criteria that prospective retail investors will need to demonstrate before we will open a trading account for you. Section 4 of the terms and conditions sets out our criteria for capacity to open an account with GO Markets. You are required to achieve a pass mark of 80% or above when completing our Trading Questionnaire. Applicants who do not achieve the stipulated pass rate are unable to submit their application. The questionnaire in our trading account application procedure addresses the following criteria: Previous trading experience in financial products Understanding of leverage, margins and volatility Understanding of the key features of the product Understanding the trading process and relevant

technology Ability to monitor and manage the risks of trading We maintain records of our assessments. 1. Please note that we do not provide personal advice

regarding the suitability of trading in these products for your personal financial circumstances and objectives.

GO Markets only permits clients to open an Account and trade with Cleared Funds (i.e. transfer of cash from your banking account to your trading account).

4 – Terms and Conditions Section 3 – Advice Section 5 – Key Features of GO Markets’

Binary Options Section 20 – Client Agreement

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 12

Please note that an Account may be opened with a cash transfer from your bank account by PayPal, EFTPOS, BPAY, SWIFT wire, cheque or with a credit card.

Opening Collateral

GO Markets only permits clients to open an Account and trade with Cleared Funds (i.e. transfer of cash from your banking account to your trading account).

Please note that an Account may be opened with a cash transfer from your bank account by PayPal, EFTPOS, BPAY, SWIFT wire, cheque or with a credit card.

Funds deposited with us may take up to 3 (three) business days or more to clear. It is your responsibility to ensure that the amounts transferred to our trust fund account are cleared in sufficient time to meet all the payment obligations that you have in accordance with our terms and conditions. A failure to do so could result in your orders being cancelled, your Binary Option transactions being closed out, and your Account being charged default interest. If you are not sure how long it will take for your fund payments to clear, you should contact your financial institution.

Prior to entry into a Binary Option, you must have sufficient Cleared Funds in your trading account, which either equals or exceeds the Deposit Requirement.

Section 2 – Terms and Conditions Section 11 – The Binary Option’s Account Section 12 – Operating an Account Section 13 – Deposit Requirements

Counterparty Risk – Hedging

GO Markets may not hedge a client’s position or post the trade straight through (known as “Straight through Processing”, or “STP”) and instead, we set the prices at which we are prepared to deal with you.

In some cases, client trades are ‘hedged’ by passing the equivalent volume of instrument traded through to a liquidity partner, thereby mitigating client risk resulting from adverse market movements. We also conduct regular surveillance of our client-to-liquidity provider exposure to ensure any discrepancies that may arise are corrected as appropriate. This may from time-to-time involve bulk purchases of a given currency, security or index with a liquidity partner which are generally infrequent and immaterial in size.

It is also imperative to mitigate counterparty risk. In an effort to reduce this risk, GO Markets Pty Ltd sources their liquidity from Tier 1 or 2 partners.

GO Markets have assessed the market risk and counterparty risks arising from entering into OTC transactions with customers and hedge counterparties and applied controls to mitigate those risks. Those controls include: the enforcement of leverage limits based on the

account equity of the client and the instruments being traded;

the enforcement of market risk limits on the net exposure and daily loss limits of GO Markets:

the selection of hedge counterparties that give reasonable assurance that GO markets has adequate facilities and capacity to hedge its exposures; and

the selection and maintenance of hedge counterparty relationships based on, amongst other things, their financial health.

Section 7 – Risks of Trading Binary Options

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 13

Our selection of counterparties is based on the following factors: the counterparties’ financial strength and stability

based on its credit rating; market reputation; the regulatory status of the counterparties; the services it provides and the strength of its

operational controls and systems (including risk management).

GO Markets maintain a Counterparty Policy to mitigate Counterparty risk.

Glossary Hedging/Hedged: The buying or selling of a tradable

instrument, matching the client’s trade size and instrument.

Liquidity Partner: A financial institution, a Bank or a Provider who accepts order flows directly from GO Markets Pty Ltd, otherwise known as a counterparty, hedging partner or a liquidity provider.

Client Risk: Inadvertent exposure to a given currency, security or index through a client’s exposure including the potential for the client to default on their margining obligations with GO Markets.

Counterparty Risk: An inadvertent exposure to the financial health of a counterparty, otherwise known as a hedging partner or liquidity partner/provider.

Counterparty Risk – Financial Resources

GO Markets is the issuer of the OTC derivative products described in this PDS and complies with the financial requirement of licence holders set out in RG166.

The goal of these requirements is to ensure that GO Markets Pty Ltd meets a minimum level of financial resources to conduct business and meet any liabilities as and when they may arise. GO Markets Pty Ltd keeps a policy to ensure that it meets and maintains adequate financial resources and complies with the financial requirements of its Australian Financial Services Licence (“AFSL”).

GO Markets Pty Ltd has a dedicated Compliance Officer who monitors the company’s compliance with its licence conditions and ASIC RG166 (financial) obligations.

In addition, we have independent external legal and accounting advisers who ensure GO Markets Pty Ltd meets ASIC requirements.

As part of this policy, and to ensure GO Markets Pty Ltd meets liquid capital requirements as set out by ASIC and also GO Markets Pty Ltd.’s obligations to its clients, GO Markets Pty Ltd: Execute a daily adjusted liquid surplus funds

calculation; and Perform daily calculation on all client funds accounts.

GO Markets Pty Ltd.’s capital requirement and surplus position is monitored on a daily basis by their accounts department in real time. All client cash is maintained in a segregated client account which is also monitored by the accounts department. This in turn is monitored and overseen by GO Markets Pty Ltd.’s Chief Financial Officer (“CFO”).

Section 7 – Risks of Trading Binary Options (Counterparty Risk)

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 14

GO Markets Pty Ltd. appoints the services of an external independent auditor who conducts an audit at the end of each financial year.

Please contact us in writing at the address/e-mail provided herein, should you wish to obtain a copy of GO Markets Pty Ltd.’s latest financial statements (free of charge) which may assist in your assessment of the credit risk.

Client positions, margin calls and liquidation are all monitored by selected risk staff. Market risk is monitored on a daily basis against set limits. Our free margin levels with our hedging counterparties are displayed at all times, showing how much market movement or increase in client position size can be sustained with the current level of margin funds. The risk exposure that our clients face is maintained by our risk and compliance staff, along with all other key risks of the business.

GO Markets Pty Ltd maintains a risk register which is reviewed at every Compliance Committee meeting.

Client Money GO Markets Pty Ltd maintains and applies a clear policy with regard to the use of client money.

Any money that you deposit with GO Markets, including your net running profits, will be held separately from GO Markets Pty Ltd.’s money, in a dedicated account, and held and dealt with in accordance with the Corporations Act requirements.

GO Markets holds its client funds in dedicated client bank accounts with National Australia Bank (“NAB”). These accounts hold Client Money separately from money belonging to the business. GO Markets does not use Client Money for any business purpose. Client Money is solely used to maintain margin that is needed to cover positions opened by clients.

One of the risks of holding Client Funds in dedicated accounts is that market movements may cause a client’s account to go into negative equity and GO Markets may be unable to redeem these funds, thus creating a deficit in the other client’s money.

To reduce this risk, GO Markets runs an Automated Stop Out System designed to prevent any client from falling into a negative balance. Additionally, GO Markets brings these negative balances onto our own balance sheet as a cost of business.

All client cash transactions are reconciled daily and double reconciled monthly. Money is only withdrawn from the client’s account to: make a payment to, or in accordance with the written

direction of, a person entitled to the money – we do not transfer money from one account into the other if it is not in the same clients’ name;

defray brokerage or other proper charges; or pay to GO Markets money to which it is entitled.

Your funds kept in our client accounts can be used to meet the payment obligations of our other clients. This means that you may also potentially suffer a loss as a result of a default by another client where money from the client account is applied to meet the payment obligations of that client and there is a deficiency in the client account.

In the event of our insolvency, your entitlements as a creditor will rank equally with all other clients and you may

Section 7 – Risks of Trading Binary Options (Client’s Money)

Section 7 – Risks of Trading Binary Options (Counterparty Risk)

Section 11 – The Binary Option’s Account

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 15

not receive of all the money held by us on your behalf if there is a deficit in the client account.

Suspended or Halted Underlying Assets

An underlying financial product may be placed in a trading halt on the relevant exchange in various circumstances.

Additionally, it may be suspended or delisted in certain circumstances. Exchange rates depend on a number of factors including, for example, interest rates, currency supply and demand and actions of government. In some situations, exchanges of currency may be suspended. GO Markets may, in its absolute discretion, cancel your transaction order in respect of a Binary Option transaction which has not yet been opened, or close any open Position, where the underlying financial product is the subject of a trading halt, suspension or delisting.

When you place a transaction order for a Binary Option with us, it is likely that we will place a corresponding order to purchase or sell the relevant product to hedge our market risk. GO Markets has the discretion as to when and if it will accept an order. Without limiting this discretion, it is likely that we will elect not to accept an order in circumstances where our corresponding order cannot be filled.

Accordingly, GO Markets may at any time determine, in our absolute discretion, that we will not permit the entry into Binary Options over one or more underlying markets.

Section 2 – Terms and Conditions Section 12 – Operating an Account Section 20 – Client Agreement

Margin Calls There are NO margin calls associated with Binary Options.

The maximum loss a person suffers from trading Binary Options is capped at the initial amount invested. There is no possibility of the investor losing more than their initial investment in the purchase of a Binary Option’s transaction and thus, the level of risk is always certain.

In essence, there are no margin calls or the need to worry about stop losses when trading Binary Options.

Section 6 – Benefits of Trading GO Markets’ Binary Options

10. OPENING AN ACCOUNT Prior to transacting in CFDs, you must read and understand our FSG, this PDS, terms and conditions and the Client Agreement (if applicable).

Before opening a corporate, trust or superannuation Account, you must sign our Client Agreement. This is an important legal document containing the terms and conditions which govern our relationship with you. It is provided to you separately by GO Markets. Please see Section 20 of this PDS which sets out some of its key terms.

We recommend that you consider seeking independent legal advice before entering into the Client Agreement, as the terms and conditions detailed in this Agreement are important and affect your dealings with us.

You must complete, sign and return a Client Agreement.

Please note that GO Markets may refuse to open an Account for any person.

All deposits are accounted for in the Base Currency which the client has a choice of. When sending funds to GO Markets, please send the same currency as the Base Currency of your Trading Account.

If your application for an Account is accepted, we may require you to pay to us, and maintain at all times, a balance in your

Binary Option’s account representing “Cleared Funds”. Cleared Funds are amounts deposited or credited to your Binary Option’s account which are able to be withdrawn by us for the purposes of acquiring Binary Options or making other payments.

We will comply with our obligations to report all relevant transactions to AUSTRAC in accordance with anti-money laundering requirements.

11. THE BINARY OPTION’S ACCOUNT

WHAT IS A BINARY OPTION’S ACCOUNT?

A Binary Option’s account is a record, or a series of records, maintained by us (or on our behalf) that shows, at any point in time, the net position of the payments that you have made or are required to make to us and the payments that we have made or are required to make to you.

The Binary Option’s account is not a deposit account with us and no money is held in the Binary Option’s account. Money paid by you is initially deposited into our trust account and dealt with as set out in Section 7.

You authorise us to:

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 16

Credit your Binary Option’s account with any amounts deposited by you into our trust account and the amounts we are required to credit to you;

Debit your Binary Option’s account with the amounts set out in Section 9 and Section 10 and any amounts withdrawn by you; and

Designate the amounts in the Binary Option’s account as either Free Equity or Deposit depending on the amount of funds you have deposited with us, your orders, open Binary Option’s positions and market movements.

HOW ARE THE FUNDS YOU DEPOSIT WITH US HELD?

Under our terms and conditions, you agree to pay to GO Markets sufficient funds at all times to satisfy all amounts payable by you. Any money that you pay to us may, for a period, be held separately from our money, in a client trust account or invested by us. Such money will be held, dealt with and invested in accordance with the Corporations Act.

You agree that: your money in our client trust account is not kept

separate from the money of other clients; we may withdraw your money from the trust account in

any of the following circumstances: > making a payment to, or in accordance with your

written directions for purposes of entering into Binary Options;

> defraying brokerage and other proper charges; > paying to us money to which we are entitled; > making a payment that is otherwise authorised by

law; > paying to us money to which we are entitled pursuant

to the operating rules of a financial market; and > making a payment to another licensee provided that

the receiving licensee is notified that the money has been withdrawn from the trust account and pays it into their trust account;

amounts withdrawn from the client trust account under the above clause: > belong to us; and > will no longer be your funds or be held for you;

we are entitled to invest the money in the client trust account in accordance with the Corporations Act;

unless otherwise agreed in writing with you: > GO Markets is solely entitled to any interest or

earnings derived from your money being deposited in our client trust account, the trust account of our OTC Derivatives Provider or invested by us in accordance with the Corporations Act. Such interest or earnings are payable to us from the relevant trust account or investment account, as the case requires, as and when we determine;

> upon realization of an investment of your funds, the initial capital invested must either be invested in another investment permitted by the Corporations Act or deposited by us into the client trust account operated in accordance with the Corporations Act;

> in the event that the amount received upon realisation of an investment of your funds is less than the initial capital invested, we must pay an amount equal to the difference into the client trust account for your benefit, except where any such difference is

the result of amounts paid out of the investment to us in accordance with our terms and conditions; and

> we will not charge a fee for investing the money in the client trust account;

we may use the money in the trust account for the purpose of meeting obligations incurred by us in connection with margining, guaranteeing, securing, transferring, adjusting or settling dealings in derivatives by us (including dealings with our OTC Derivatives’ Providers), including dealings on behalf of other clients. If used for this purpose, the money will be held in one or more accounts in the OTC Derivatives’ Providers’ names in accordance with the Corporations Act.

Holding your money in one or more client trust accounts may not afford you absolute protection. The purpose of a client trust account is to segregate our clients’ money, including your money, from our own funds. If the amount held in a trust account for you does not satisfy or fully satisfy money we owe to you and we become insolvent, you will be an unsecured creditor in relation to the balance of the money owing to you.

Your funds will be kept together with the funds of other clients in our client trust account. Your funds kept in our client trust accounts can be used to meet the payment obligations of our other clients. This means that you may also potentially suffer a loss as a result of default by another client where money from the client trust account is applied to meet the payment obligations of that client and there is a deficiency in the client trust account. In the event of our insolvency, your entitlements as a creditor will rank equally with all other clients and you may not receive of all the money held by us on your behalf if there is a deficit in the client trust account.

GO Markets is entitled to retain all interest earned on clients’ money held in segregated accounts with a bank or approved deposit-taking institution. The rate of interest earned by GO Markets on this account is determined by the provider of the deposit facility.

HOW DO YOU GET FUNDS IN AND OUT OF YOUR BINARY OPTION’S ACCOUNT?

You can deposit funds into our trust account by sending us a cheque or using electronic funds transfers, PayPal, BPAY or credit card. Those funds then will be credited into your Binary Option’s Account.

Funds deposited with us may take up to 3 (three) days or more to clear. It is your responsibility to ensure that the amounts transferred to our trust account are cleared in sufficient time to meet all the payment obligations you have in accordance with our terms and conditions. A failure to do so could result in your orders being cancelled and your Binary Option positions being closed out, and your Account being charged default interest. If you are not very sure of how long it will take for your payments to clear, you should contact your financial institution.

“Free Equity” means the cash balance in your Binary Option’s Account PLUS or MINUS any Unrealised Profit/Loss LESS any deposit requirements. You can, subject to our terms and conditions, withdraw funds up to the amount, if any, of your Free Equity’s Unrealised Profit/Loss is profit or loss that has been made or lost but is not yet realised through a transaction.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 17

EXAMPLE – Free Equity

You have cash balances of $6,000 in your Binary Option’s account of which $3,000 is needed to meet your deposit requirements for the opened Binary Option positions and an Unrealised Profit of $1,500.

In this case, your Free Equity is $4,500 and you will be able to withdraw up to this amount from your Binary Option’s Account.

DO YOU GET INTEREST ON YOUR BINARY OPTION’S ACCOUNT BALANCE?

You DO NOT receive any interest from balances on your Binary Option’s Account.

12. OPERATING AN ACCOUNT

HOW DO YOU OPEN A BINARY OPTION’S POSITION?

Binary Options can only be opened by placing an order on the GO Markets’ Trader Platforms.

To open a Binary Option’s position, you will need to provide us with specific information including the type of the underlying market instrument that you would like to speculate, the size of the position and whether you intend to be the ‘long’ or ‘short’ party.

All quotes are indicative and no Binary Option’s position will be entered into, until your order is accepted.

Due to transmission delays which may occur between when you send us your order and our trading server accepting your order, the price offered by us may change before we receive your order. If you place an order and the price changes before the order is received, the order will be accepted by us at the new price. This means the price at which your order is accepted may be different from the price you were quoted.

It should be noted that we cannot predict future price movements and our quotations are not a forecast of where we believe they will be at a future time.

ACCEPTANCE OF ORDERS

If we accept your order then the Binary Option’s position is opened and we will send a confirmation to you as follows: If you have entered an order through the GO Markets’

Trader Platforms, the platforms will automatically give you a summary of the main elements of your order which can be printed by you so that you can check if the order is correct. Please note that this summary is NOT a confirmation. Once your order has been executed, you can access your ‘Trades Booked’ statement online. The ‘Trades Booked’ statement IS your confirmation. You will be asked to accept this ‘standing facility’ method of receiving confirmation;

If you have placed an order by calling us, you can access your ‘Trades Booked’ statement online which is your confirmation as set out above; and

If requested, we will send the confirmation to you via ordinary post.

GO Markets has absolute discretion on whether to accept an order or not. In general, we will use reasonable endeavours to

accept an order. However, we may not accept an order if, for example, it is not reasonably practicable for us to do so.

HOW DO YOU CLOSE OUT A BINARY OPTION’S POSITION?

A Binary Option’s position is automatically closed out upon expiring. At no point during the duration of the trade can the Binary Option’s position be closed manually.

Once the Binary Option’s position is closed out, we: determine any debits or credits required to your Binary

Option’s account; and send a confirmation to you as set out above.

There are some circumstances in which we may close out a Binary Option’s position in our sole discretion. For example, we may do this where you fail to maintain your required deposit. This is explained further in Section 7 and Section 8 of this PDS.

GO MARKETS’ TRADER PLATFORMS

We will provide you with access to an online trading platform which will enable you to trade in our Binary Options over the internet.

The GO Markets’ Trader Platforms enable you to: trade Binary Options generally 24 hours a day from

Monday 7:00 am AEST to Saturday 7:00 am AEST; and access information on a wide range of global markets

generally 24 hours a day.

The significant features of the GO Markets’ Trader Platforms are as follows: Real time prices – however, due to transmission delays

between when your order is sent to us and when the order is automatically accepted by our trading server, your order may be accepted at a different price than what was quoted at the time of your order (see Section 12 for further details);

Real time news feeds; Technical analysis; Account summaries; Support; and A secure website

13. DEPOSIT REQUIREMENTS

WHAT IS DEPOSIT?

You are required to maintain a specified amount of cash deposit with us in respect of each open Binary Option’s position, referred to as the “Deposit Requirement”.

The deposit paid by you is initially deposited into our trust account but is then dealt with as set out in Section 11.

The amount of required deposit is determined by you, at your sole discretion, on the condition that it is not lower than our minimum deposit requirement for the selected Binary Option’s position.

This PDS does not specify the minimum requirement rates because the rates are determined by us by reference to a number of variable factors, including the liquidity and the volatility of the underlying markets.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 18

The current minimum deposit rates for any particular underlying market products are published on our website at www.gomarkets.com.au, or can be obtained by calling us.

INITIAL DEPOSIT

The deposit you are required to maintain with us is normally considered as the “Initial Deposit”.

Initial Deposit is the amount of the deposit required to open a Binary Option position.

YOU ARE RESPONSIBLE FOR SATISFYING THE DEPOSIT REQUIREMENTS

If the required amount of deposit for all your Binary Options’ positions exceed the equity balance of your Binary Option’s account, you must either deposit additional cash with us or alternatively close out the open Binary Options’ positions to reduce your required deposit to a level acceptable to us.

Due to the highly volatile nature of the underlying markets, we cannot give you definite timeframes for you to meet your deposit requirements. In some circumstances, we may need to close out your open Binary Options’ positions immediately if you fail to meet deposit requirements in order to minimise our risk exposure.

A failure to meet our deposit requirements is an event of default and we have the right to immediately close out your Binary Options. You must regularly monitor your own deposit requirements.

You are responsible for ensuring that you have sufficient deposit. Binary Options can be highly volatile and you should ensure that you are always contactable by us. Essentially, all trades are your responsibility so you should always be aware of your deposit requirements and act accordingly.

There are NO margin calls for Binary Options.

If you do not meet the required deposit requirements, then we may, in our absolute discretion to: cancel any orders; refuse any orders; and close out, without notice, all or some of your open Binary

Options’ positions. Any losses resulting from us closing a Binary Option will be debited into your Binary Option’s account and may require you to deposit additional cash with us. In addition, default interest may apply on the amount of any cash shortfall.

Please note that GO Markets may change your deposit requirements at any point in time by giving you prior notice by contacting you directly via e-mail or by calling you.

14. FEES AND OTHER COSTS

ASSOCIATED FEES

The fees associated with Binary Options are the price of the Binary Option itself.

You will not be charged a fee when you acquire any Binary Option’s product. GO Markets absorbs all of its costs regarding its hedging, trading and dealing, and never passes these onto clients. Instead, GO Markets derives its income

from options purchased by clients that expire ‘out of the money’.

Please note that an option trade expires ‘out of the money’ when the Expiry Price of the underlying market is below the Strike Price for a “Call” Binary Option, and above the Strike Price for a “Put” Binary Option.

GO Markets also reserves the right to pass on administration fees or charges such as, but not limited to, credit card merchant fees and bank wire transfer fees.

CURRENCY CONVERSION CALCULATION FEE

Funds can be deposited to GO Markets and held in the following currencies: Australian Dollars United States Dollars New Zealand Dollars Singapore Dollars British Pound Sterling Euros.

Your Binary Option’s Account can be denominated in any of the six stated currencies.

Under our terms and conditions, we are entitled to charge you a conversion calculation fee of up to 0.5 per cent for converting amounts into your nominated currency when you deal in a Binary Option denominated in a currency other than Australian dollars, United States Dollars, New Zealand Dollars, British Pound Sterling, Singapore Dollars or Euros and: funds are transferred from our client trust account and

converted at the current spot rate for the conversion of the relevant funds into your nominated currency (being either Australian dollars, U.S. Dollars, New Zealand Dollars, British Pound Sterling, Singapore Dollars or Euros); or

realised profits and losses are converted to your nominated currency (being either Australian dollars, U.S. Dollars, New Zealand Dollars, British Pound Sterling, Singapore Dollars or Euros) immediately on closing the Binary Option’s position at the current spot rate.

EXAMPLE – Conversion Calculation Fee

If following the termination of a Binary Option’s position, you realise a profit of 100,000 Japanese Yen and your trading account is denominated in Australian Dollars, and the exchange rate is 1 AUD = 77 Yen, you will receive AUD $1,298.70 and we will charge you a conversion calculation fee of AUD $6.49.

Currently, GO Markets has waived the conversion calculation fee for all currency conversions. However, we may, at our discretion, charge the conversion calculation fee by giving you 30 days prior notice.

DEPOSIT

You are required to maintain a deposit as set out in Section 13. The deposit is not a fee but rather a security deposit that you are required to keep with us.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 19

INTEREST ON ACCOUNT BALANCES

GO Markets is entitled to retain all interest earned on clients’ money held in segregated accounts with a bank or approved deposit-taking institution.

The rate of interest earned by GO Markets on this account is determined by the provider of the deposit facility.

INTERNATIONAL TRANSFER FEES

Depositing Funds

When depositing funds to your GO Markets’ trading account internationally, both the transferring and receiving financial institutions may place a transfer fee on your transaction.

When reconciling your international payment, our funding department will note the transfer amount, which includes the transferring bank’s charge. Subsequently, we will also note the bank charge from GO Markets’ bank account. The net sum will then be transferred to your GO Markets’ trading account.

Withdrawing Funds

When withdrawing funds from your GO Markets’ trading account, the amount you receive in your bank account may differ from the sum you have withdrawn.

While GO Markets covers the fee for all withdrawals with our bank, your financial institution and/or intermediary bank may also apply charges.

These charges depend on your account/credit card type, and/or the location of which the receiving bank is located and other considerations such as alliances with the transferring bank and/or intermediary institution.

Although we do our utmost to negotiate transfer fees with our bank, we are unable to ascertain, control or negotiate transfer costs with your financial institution and/or credit card provider.

OTHER FEES AND COSTS

There may be other costs applicable to you, such as: Credit Card payments PayPal payments Telegraphic Bank Transfer payments

For further information on the above, please see: https://www.gomarkets.com.au/fund-account

15. TAXATION

TAXATION ADVICE

Please note that GO Markets DOES NOT provide any taxation advice.

If you trade in Binary Options, you may be subjected to Australian Taxation.

This section outlines general information about the significant Australian Income Tax and GST implication of trading derivative products.

The information contained in this section is of a GENERAL nature only and is not intended to constitute legal or taxation advice and should not be relied upon as such.

The taxation implications of your transactions will depend on your own individual circumstances and GO Markets recommends that you obtain independent professional taxation advice on the full range of taxation implications applicable to your own personal facts and circumstances.

Taxation laws are complex in nature and their interpretation and administration may change over the term of your transacting. We will not advise you of any changes in taxation laws should they occur. You must take full responsibility for the taxation implications arising from your own transacting, and any changes in those taxation implications during the course of your transacting.

The following is a GENERAL summary of the main Australian Income Tax consequences of trading in Binary Options.

This summary only considers the position of an Australian Tax resident individual who does not carry on business and trades in Binary Options with the intention of making a profit. It does not take into account the position of other persons who trade in Binary Options.

Profit or Loss

The availability of tax deductions or losses incurred as a result of transacting in derivative products to offset current and future year income will depend on your personal circumstances and you will need to seek advice from your tax advisor in this regard.

Generally, any profits derived or loss incurred in respect of a Binary Option should be included in your assessable income or allowed as a deduction, as the case may be, at the time you close out your Binary Options.

In calculating the amount of any profit or loss, you should take into account any Profit or Loss, any spreads, any interest on open Binary Options’ positions and any currency conversion calculation fees debited or credited to your Binary Option’s Account.

Certain expenses incurred by you in connection with trading in Binary Options may be deductible to the extent that they are incurred for the purpose of deriving your assessable income. The deductibility of these expenses will depend on your own personal circumstances. You should obtain your own advice as to whether such expenses will be deductible to you.

Taxation of Financial Arrangements

New rules were introduced with general application from July 1, 2010 which set out the method by which gains and losses from financial arrangements will be brought to account for tax purposes (referred to as the Taxation of Financial Arrangements (“TOFA”) rules).

The TOFA rules apply to financial arrangements held by certain investors whose assets or aggregated turnover exceeds specified thresholds.

The TOFA rules also apply to investors who have made an election to apply to TOFA rules to their financial arrangements.

You should obtain your own advice as to whether the TOFA rules apply to you in relation to the taxation treatment of Binary Options’ transactions.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 20

Capital Gains Tax

Binary Options’ positions may constitute a Capital Gains Tax (“CGT”) asset held by you for the purposes of applying the CGT provisions to any capital gain or capital loss realised by you.

Goods and Services Tax (“GST”)

No GST should be payable in relation to your trading of Binary Options with GO Markets.

This is on the basis that they are considered to be ‘financial supplies’ under the new Tax System (Goods and Services Tax) Act 1999. Consequently, they are input taxed and no GST payable on their supply. However, independent advice should be sought from your accountant or financial adviser confirming this, before acting in reliance thereon.

Clients should seek their own GST advice on the implication of entering into Binary Options’ transactions.

16. DISCLOSURE OF INTEREST GO Markets does not have any relationships or associations which might influence us in providing you with our services. We may however share fees and charges with our associates or other third parties, or receive remuneration from them with respect to your dealings with us.

In particular, GO Markets is a market maker, not a broker, and accordingly it will always act as the principal for its own benefit in respect of all Binary Options’ transactions with you.

We may also conduct transactions to hedge our liability to you in respect of your Binary Options’ positions by undertaking transactions in the underlying products. Such trading activities may impact (positively or negatively) the prices at which you may trade Binary Option products.

You may have been referred to us by a service provider who may receive financial or non-financial benefits from us. These should have been disclosed to you by the service provider in question.

Please note however that such benefits will not impact fees or the rates you will be offered for financial products or services undertaken with GO Markets.

17. PRIVACY POLICY Your privacy is very important to us and we are committed to compliance with the Privacy Act and the National Privacy Principles.

The information you provide to GO Markets and any other information provided by you in connection with your Account will primarily be used for the processing of your Account application and for complying with certain laws and regulations.

GO Markets will NOT disclose your personal information to other third parties without your consent, except as authorised or required by privacy laws.

We may use this information to send you details of other services or provide you with information that we believe may be of interest to you.

Full details of our privacy policy are available from our website at www.gomarkets.com.au

18. DISPUTE RESOLUTION GO Markets wants to know about any problems or concerns you may have with our services so that we can take necessary steps to resolve the issue.

We have internal and external dispute resolution procedures to resolve complaints from clients. A copy of these procedures may be obtained by contacting us and requesting a copy.

In the event that you are dissatisfied with any aspect of our products or services, please give us the opportunity to investigate and answer your questions.

Initially, all complaints will be handled and investigated internally by GO Markets to resolve any complaints or concerns you may have, as quickly and fairly as possible in the circumstances.

If you wish to lodge a complaint about the financial services provided to you, firstly compile all of the documents that relate to your complaint and any questions that you wish to have answered. Any complaints or concerns should be directed to the GO Markets’ Support Team and/or your Account Manager (by telephone, e-mail, or letter) at the address and telephone numbers provided in Section 1 of this PDS.

Please note that if you phone your complaint in then we may ask you to e-mail us the full details as well. Our compliance team will then attempt to review the situation and resolve within 2 (two) business days if possible.

GO Markets will investigate your complaint, and provide you with its findings and decisions, and the reasons on which it is based, in writing.

Should you feel dissatisfied with the outcome after the 2 business days, as per our PDSs and Financial Ombudsman Service (“FOS”) procedures, we then have 45 (forty five) days to further investigate and resolve. We will communicate with you throughout this time period and may ask for further information.

If after the 45 days and once you have our response, you are still not satisfied with the outcome, you then have the ability to escalate your concerns to an external body for a resolution.

Please note that GO Markets is a member of the Financial Ombudsman Service (“FOS”), which is an approved external dispute resolution scheme that can deal with complaints about all of the financial services GO Markets Pty Ltd provides under its AFSL. Our membership number is 10822.

If you are dissatisfied with the outcome of your complaint, you have the right to refer to FOS via the details on the next page. Please be advised that FOS will not consider a complaint until GO Markets Pty Ltd has had the opportunity to address it internally within the 45-days timeframe.

FINANCIAL OMBUDSMAN SERVICE CONTACT DETAILS (“FOS”)

Address: G.P.O. Box 3 Melbourne VIC 3001

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 21

Phone: 1300 780 808

E-mail: info@fos.org.au

Website: www.fos.org.au

You can also contact the Australian Securities and Investments Commission (“ASIC”) on 1300 300 630. This is a free call info line. This is another alternative that you may use to make a complaint and obtain information about your rights.

If you have any further queries about this PDS or our products and services, you can either contact us via the details we have provided to you in Section 1 or GO Markets at:

Name: GO Markets Pty Ltd

ABN/AFSL: 85 081 864 039/254963

Address: Level 50 120 Collins Street Melbourne VIC 3000

Phone: (03) 8566 7680

Fax: (03) 9225 5067

E-mail: compliance@gomarketsaus.com

Website: www.gomarkets.com.au

19. ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING By applying for a Binary Option’s Account, you are taken to agree to the following terms: You are not aware and have no reason to suspect that:

> the money used to fund your Binary Option’s account has been or will be derived from, or related to any money laundering, terrorist financing or other activities deemed illegal under the applicable laws or otherwise prohibited under any international convention or agreement (“illegal activities”); or

> the proceeds of your Binary Option’s Account will be used to finance illegal activities;

You agree to promptly provide us with all information that we reasonably request in order to comply with our obligations under all applicable laws.

Please note that GO Markets DOES NOT accept payments from or make payments to any third parties. In no circumstances does GO Markets accept cash deposits either.

In accordance with applicable laws, GO Markets reports, where necessary, any suspicious matters to AUSTRAC.

20. CLIENT AGREEMENT This PDS should be read in conjunction with our Client Agreement (where applicable) which sets out our terms and conditions between you and us for the CFDs we offer.

In order to open a corporate, trust or superannuation Account, you are required to sign our Client Agreement. This is an important legal document containing the terms and conditions which govern our relationship with you. It is

provided to you electronically by GO Markets as part of the application process.

We recommend that you consider seeking independent legal advice before entering into the Client Agreement, as the terms and conditions detailed therein are important and affect your dealings with us.

We note the following key terms in the Client Agreement, some of which have been summarised throughout this PDS: Clients’ acknowledgements regarding knowledge and

suitability of Binary Option products; Clients’ representations and warranties; Clients’ account operating details; Binary Options’ trading requirements; Deposit requirements and GO Markets’ rights in respect

thereof; Clients’ obligations with regards to confirmation details

(“discrepancies”); Process for closing out a trade, and GO Markets’ rights in

relation to price calculation; Interest payable/receivable on open Positions; Requirements regarding the appointment of authorised

persons by the clients; Default events; GO Markets’ rights following a default event; Amendment and termination rights; Client Indemnity in favour of GO Markets; GO Markets’ limitation of liability; Fees and charges; Restrictions on assignment of agreement; Telephone recordings; Provision of general advice; Governing law (VIC); and Electronic trading platform conditions/process

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 22

GLOSSARY Please find the terms used throughout the PDS below.

FEATURE DESCRIPTION ‘Account’ Account of the client dealing in the products issued by GO, which is established in

accordance with the PDS, FSG, terms and conditions and Client Agreement (if applicable). ‘AEST’ or ‘AEDT’ Australian Eastern Standard Time or Australian Eastern Daylight Time.

‘AFSL’ Australian Financial Services Licence issued by ASIC.

‘ASIC’ Australian Securities & Investment Commission.

‘Binary Option’ A derivative product that is derived from an Underlying Market, and pays a pre-determined, fixed amount, depending on whether or not a financial event occurs at the Expiry Time.

‘Call Binary Option’ A Binary Option that yields a profit for the buyer when the Strike Price at the Expiry Time is higher than the Expiry Price. (See also “Put Binary Option”.)

‘Cleared Funds’ Amounts deposited or credited to your Binary Option’s account which are able to be withdrawn by us for the purposes of acquiring Binary Options, making deposit or other payments.

‘Client Agreement’ The agreement between you and GO in respect of your trading in your binary options account. Applicable to corporate, trust and superannuation trading accounts only. Both you and GO are bound by the terms of the Client Agreement.

‘Corporations Act’ Corporations Act 2001 (Commonwealth).

‘Deal’ or ‘Dealing’ Means dealing as defined by section 766C of the Corporations Act.

‘Deposit’ A specified amount of cash deposit with us in respect of each open Binary Option’s position (see Section 13).

‘Derivative’ An instrument which derives its value from the value of an underlying instrument (such as shares, commodities, currencies, etc.).

‘European Style Option’ A Binary Option which can only be exercised on the Expiry Time.

‘Expiry Price’ The price of the Underlying Market at the Expiry Time.

‘Expiry Time’ The time that the Binary Option expires (or terminates).

‘Free Equity’ The cash balance in your Binary Option’s Account plus or minus any Unrealised Profit/Loss less any deposit requirements. You can, subject to our terms and conditions, withdraw funds up to the amount, if any, of your ‘Free Equity’.

‘GO Markets’, ‘GO’, ‘us’ or ‘we’ GO Markets Pty Ltd.

‘Hedging’ A strategy employed to manage exposure to the risk of foreign exchange rate fluctuations by taking a position using Binary Options to eliminate or reduce that risk.

‘In the Money’ When the Expiry Price of the Underlying Market is above the Strike Price for a Call Binary Option and below the Strike Price for a Put Binary Option.

‘Margin Call’ A Margin Call is a demand for additional funds to be deposited into your Account to meet your total deposit requirement because of adverse price movements on your open positions.

‘Opening a Binary Option’s Position’

To either buy or sell a Binary Option.

‘OTC Derivatives’ Providers’ The party with whom we enter into a Binary Option with, on our own behalf, when we enter into a Binary Option with you to hedge our exposure under the Binary Option between you and us.

‘Out of the Money’ When the Expiry Price of the Underlying Market is below the Strike Price for a Call Binary Option and above the Strike Price for a Put Binary Option.

‘PDS’ Product Disclosure Statement.

‘Position’ A Position is a Binary Option entered into by you under the terms and conditions and PDS.

‘Put Binary Option’ A Binary Option that yields a profit to the buyer when the Strike Price at the Expiry Time is lower than the Expiry Price. (See also “Call Binary Option”.)

‘Strike Price’ The price of the Underlying Market when the Binary Option is purchased. At the instant the price of the Underlying Market reaches the Strike Price the Binary Option is termed to be “at-the-money”.

‘Total Deposit Requirements’ The sum of your Deposit Requirements for all of your open positions.

GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 23

‘Toxic Trading’ The use of sophisticated algorithmic trading systems designed to take advantage of technical deficiencies, sometimes by sending an instruction to buy and sell in short succession. Toxic trading typically occur around economic news or data events.

‘Trading Day’ Monday to Saturday including public holidays.

‘Underlying Instrument’ An Underlying Instrument is a security, such as a stock, a commodity, or other type of financial product, such as a stock index, whose value determines the value of a Derivative Investment or product.

‘Unrealised Profit/Loss’ Unrealised Profit/Loss is profit or loss that has been made or lost but is not yet realised through a transaction. Once the trade is closed, the unrealised profit would be realised and reflected in the cash balance. The Unrealised Profit/Loss is not included in the deposit for a Binary Option.

‘You’ or ‘Client’ The person who accepts the terms of and agrees to the terms and conditions, PDS and Client Agreement (if applicable).

THIS PDS IS PREPARED ON JULY 6, 2016 AND ISSUED BY GO MARKETS PTY LTD ABN 85 081 864 039 AFSL NO. 254963