Regulation of binary brokers: what you need to know?

Are you looking to trade in binary options, but don’t know where to start? There are quite a number of binary options brokers around, both online and offline. This makes it a daunting task picking the right broker, particularly if you don’t know what you’re looking for.

One option may be to go with a broker who is regulated. Please note that there are plenty of unregulated brokers that have great reputations in the industry, and that are happily used by many successful traders. It’s just that when you’re new to trading and have a particularly low risk profile, the knowledge that your broker is regulated may help put your mind at ease.

What Does It Mean If A Broker Is Regulated?

When a broker is regulated, it means that the agency has been given a license by a relevant authority with permission to operate as a trade broker. This shouldn’t be mistaken for a license to carry out a certain business.

For YOU (the trader), a regulated broker means that you are presumably safer when it comes to protecting your investment. In theory this means that you become more confident about the investment you are making.

Is It Important To Trade With Regulated Binary Options Brokers?

Brokers are required to undergo stringent processes and steps if they want to meet approval requirements to be regulated. One of the terms that must be agreed is that all of their traders’ accounts have to be protected. Having a regulated broker is all about trust, as nobody wants to deal with a company they don’t trust – and never is this truer than in the industry of binary options!

However, this doesn’t mean that binary options brokers who aren’t regulated are illegal, or that they aren’t necessarily trustworthy. Some of the non-regulated brokers are just genuine as the regulated. The difference may simply be that they haven’t applied for a license to become regulated.

A non-regulated broker that has been in operation for several years, and that has great customer reviews, may be more suited to you than a regulated broker. Some brokers we believe are trustworthy but not regulated include:

  • TradeRush
  • Binarium

Why Trade With Regulated Binary Options Brokers?

Regulated binary options brokers must uphold all the license requirements when dealing with traders. This means that the products offered are genuine, and that the market prices are fair. You are also more likely to receive your payments/winnings at the right time.

There is peace of mind in knowing that licenses are only awarded to binary options brokers that offer 100% legitimate, safe, and fair binary options services.

Why Do Different Brokers Accept Traffic From Different Countries?

When it comes to regulations, the brokers are policed with regards to a number of geographical jurisdictions. Different countries have their own regulations in accordance with the laws of that particular country. The regulations in the US and in Japan are particularly strict, which is why most brokers unfortunately do not accept traffic from these countries.

If your country lacks regulation policies on binary options, that doesn’t mean that you cannot trade binary options in that country. At this point in time, binary options are legal to trade in all countries.  This situation only changes if you are doing something illegal with your trading, such as money laundering or insider trading.

Countries with Special Regulatory Jurisdictions

There are certain countries with special regulatory jurisdictions. Some of these countries include United States, Cyprus, United Kingdom, Malta, and Japan. The agencies in these countries are responsible for overseeing the financial market.

In such countries, a new broker getting into business will be obliged to apply and register for a binary options license. This is advantageous to the governments since they levy taxes for such genuine brokers. Nevertheless, regulation of binary options in most countries is still not possible.

How Can You Know That You’ll Be Protected If Your Country Doesn’t Regulate Binary Options?

Unlike what most people would think, trading binary options in a country lacking the regulatory policies isn’t “wrong” or disadvantageous in any manner whatsoever. Licensed and regulated brokers are obliged to treat investors equally, regardless of which country they originate from. You may simply be better off dealing with binary options brokers that have been regulated, and/or have been around for a few years.

Examples of Regulated Binary Options Brokers

If you’d feel safer starting your trading career with a regulated broker, here are the few we believe are the safest, and who offer the best all-round service:

Final Thoughts

The bottom line is that you should feel safe with the broker you choose to use for binary options trading. It’s also important to understand what it means for a broker to be regulated, and to determine whether this is important for you in making your choice.

Even though it is perfectly legal and often safe to trade with unregulated brokers, if something goes horribly wrong you are less likely to be protected from financial fraud or abuse with an unregulated broker. This is why many traders choose to stick with regulated brokers binary options.

EN_Graphgif_728x90

Vote this post

0

Recommended posts

See our rankings of binary options brokers : Take a look at our comparison tool to see the best binary options brokers and compare welcome bonuses, return on loss, minimum deposit and maximum gain !

Введите ваши мысли

Расскажите нам, что вы думаете...
Если вы хотите картинку, чтобы показать свой комментарий, Вы можете получить Gravatar!

Введите ответ * Лимит времени исчерпан. Пожалуйста обновите капчу.