Trading Binary Options with an unregulated binary options broker is basically gambling.
Many binary option brokers are not regulated, and many brokers are based in tax havens or places like Gibraltar, British Virgin Islands, Seychelles and Cyprus. This causes many people to assume all binary options are scams.
The truth is, not all brokers are scams. Trading with a licensed & regulated broker is the smart thing to do! Read about regulated brokers here.
We have many articles about binary option robots and signals see here.
The “Binary Option Robot” is the most advanced automated trading software, read full review here.
Most brokers do not offer free demo accounts for traders to test their trading platform.
You can read more detailed reviews of broker on Scam Broker. There you will find reviews of legitimate and scam binary option brokers.
Have More Questions? Contact us
Recently, The Cyprus Securities and Exchange Commission decided to include binary options in the list of financial instruments that fall within the remit of the Investment Services and Activities and Regulated Markets Law. You can find the complete list of investment firms here.
Here is a quote from one Binary Options brokers website.
Like many other instruments that take their value based on the value of an underlying asset, binary options have no centralized exchange on which they’re traded. Brokers sell contracts directly to buyers with no third party involvement, known in the financial world as over-the-counter trading. Since binary options are almost exclusively traded over the internet, this allows brokers to establish themselves in areas with favorable financial regulations. Many brokers, for example, are based in Cyprus which has a low tax rate. Other than local taxation policies, there is little regulation for trading binary options. Their over-the-counter platform and various broker locations work together against the implementation of any real regulations.
It is imperative that someone who is considering trading binary options does their research before giving a broker their money. By simply performing a search and reading reviews for a given broker, a trader can ensure that their money is held securely and responsibly.
This broker is telling you to not open an account with a binary options brokerage firm, unless you verify that they have a good reputation.
Two issues that constantly come up with Binary Option Brokers are:
- Do they allow you to withdraw your profits?
- Are their quotes correct?
For example, If you are placing a bet on the EUR/USD. What price are they quoting? Is it the same price you see on the CME Globex, Interactive Brokers, FXCM? Each broker makes up their own prices. When trading Binary Options on a stock. Is the broker using their own data? Are they taking quotes from the NYSE, NYMEX and Electronic exchanges or from their own internal system.
Here is what many brokers write in their disclaimer about market prices.
Option quotes displayed on the platform are indicative rates that the company is prepared to sell options at, and may not correspond to either live market quotations or quoted rates at the point of sale.
When reading reviews it is important to know who is writing the review. You are better off speaking with friends who actually have an account with that broker and have had experience trading real money with them before you decide to open an account.
On June 6th 2013 the US SEC put out an investor alert regarding binary option scams. Read entire alert on the SEC website here.
Our latest check on May 13th 2015, shows more than 200 different Binary Option Brokers. See the complete list below.
We have not been able to verify that all of them are still operational but the ones with links are actively trading.
|24Option||Cherry Trade||LBinary||Sky Binary|
|10Trade||CTOption||Magnum Options||Smart Option|
|888 Binary||Dragon Options||Master Option||SpotFN|
|24Winner||Dream Option||Markets King||Star Option|
|365 Trading||Easy Getter||MaxOptions||StarfishFX|
|AFX Capital||Easy Invest||My Self Trade||StockPair|
|Alliance Options||Easy Trade||No1Options||Target Options|
|Alfa Options||EBinaires||NRG Binary||TD Options|
|Almishal Trading||Empire Option||NY Stock Options||Thinks Binary|
|Alpari||Enter Option||One Two Trade||Top Option|
|Algo Banque||Europe Binary Broker||Options Market||Tradarea|
|AnyOption||ETX Capital||One Binary||Titan Trade|
|Avrio||ETX Binary||Only Option||Trade Quicker|
|Banc De Binary||EU Binary Brokers||Option365||TradeSolid|
|BD Swiss||EZ Trader||Options Area||TradeRush|
|Beast Options||Every Option||OptionBit||Tradignition|
|BFX Option||FTrade||Option King||Traders King|
|Binary Options 360||FXDD||Option Place||TraderXP|
|Binary||Forest Park BX||OptionRally||Trading 24/7|
|Binary BrokerZ||Get Binary||Option VIP||Trend Option|
|Binary Book||GFM Trader||OptionWeb||Twin Option|
|Binary Globes||Global Trader 365||Option World||uBinary|
|Binary Kings||GMYT Binary||Option Yard||United Options|
|Binary Uno||Golden Binary||OptionTime||VPOption|
|Binary Winner||Golden Matrix||Options Click||VIP Option|
|Binex Markets||Greenzone options||Options Express||Vostro Finance|
|Binoa||Go Options||Options Now||WeOption|
|Bloombex Options||Grow Binary||Option Winner||Winner Options|
|BNRY Options||GTOptions||Oracle Options||Windsor|
|BO Capital||GTF Binary||Peterson & Kelley||World Options|
|Boss Capital||HY Binary Options||Porter Finance||XP Markets|
|BTG Option||iOption||Put n Call||YesOption|
|Brokerage Capital||Interactive Option||Quick Option||Zenith Options|
|Bridge Binary||IBFX||Redwood Options||Zerich option|
|Capital Option||IB Options||Regal Options||Zoch Trade|
|CallandPut||IKKO Trader||Regulated Options||Zoom Trader|
|Cedar Finance||Insta Options||Royal de Bank||Zone Options|
|Core Liquidity Markets||iTradeStation||Set Option|