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.
For an updated list of the most popular brokers, see here.
American Traders will not find a CySEC regulated broker that accepts American traders. Empire Option which is regulated in Uruguay, accepts American traders.
The minimum deposit to open an account with most brokers is $250.
Other brokers that accept USA traders are; BeeOptions, BinaryOptions360, Bloombex Options, Brokerage Capital, Cedar Finance, CTOption, Empire Option, GTOptions, LBinary, Leader Option, OptioNow, OptionsXO, TitanTrade, uBinary, Regal Options and YesOption.
Signal Providers – We have an extensive discussion of binary option signals here. Most brokers offer some type of trading signals to their clients. There are a few brokers who actually have auto signals software. Click here to read about Signal Index from GOptions.
Demo Accounts – Most brokers do not offer free demo accounts for traders to test their platform. Brokers would rather focus on existing customers than spend time with a non serious trader. Power Option (No USA traders) uses the Marketpulse platform, and offers free demo accounts, see here. GOptions accepts American traders, and gives traders a separate demo account, with a funded account, register here.
You can read more detailed reviews of broker on Scam Broker. There you will find reviews of legitimate and scam binary option brokers.
Email Your Questions To: Trades@BinaryEX.com
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, on IdealPro, 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 SEC put an investor alert regarding binary option scams. Read entire alert on the SEC website here.
Our latest check on August 22nd 2014, shows more than 250 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|
|60 Options||Currency House||Leader Option||Smart Dengi|
|777 Binary||CTOption||Magnum Options||Smart Option|
|888 Binary||Dragon Options||Master Option||SpotFN|
|99Binary||Dream Option||Market Options||Star Option|
|Admiral Markets||Easy Getter||Max Options||StarfishFX|
|AFX Capital||Easy Invest||My Self Trade||StockPair|
|AJ Browder Capital||Easy Option||NordBNK||Swift Option|
|Alfa Markets||Easy Trade||Novo Markets||Target Options|
|Alfa Options||EBinaires||NRG Binary||TD Options|
|Almishal Trading||Empire Option||NY Stock Options||Thinks Binary|
|Alpari||EU Binary||One Two Trade||Top Option|
|AnyOption||Europa Trader||Options Market||Trade 101|
|Apostenabolsa||ETX Capital||One Binary||Titan Trade|
|Avrio||Exciting Markets||Option 365||Trade Quicker|
|Banc De Binary||Ez Binary||Option 4 Trade||Trade Room Bar|
|Banc De Swiss||EZ Trader||OptionArea||TradeRush|
|Beast Options||E-Z Option||OptionBit||Tradenet 777|
|BeeOptions||Five Stars Options||Opteck||Trader Easy|
|Bet on Markets||FMTrader||Option Game||Traders Room|
|BFM Markets||FN 168||Option IBC||Trader World|
|BFX Option||FTD Options||Option King||Traders King|
|Binary Trade||FXCC||OptioNow||Traders Leader|
|Binary Options 360||FXDD||Option Place||TraderXP|
|Binary||Geo Tradex||OptionRally||Trading 24/7|
|Binary Bank||Get Binary||Option VIP||Trend Option|
|Binary Markets||GFM Trader||OptionWeb||Twin Option|
|Binary Plus||Global Trader 365||Option World||uBinary|
|Binary Plus One||GMT Options||Option XP||Ultra Markets|
|Binary Pro||GMYT Binary||Option Yard||United Options|
|Binary Tilt||Golden Binary||OptionTime||Vault Options|
|Binary Wall Street||Golden Markets||Options 2 Trade||VIP Binary|
|Binary Winner||Golden Matrix||Options Bravo||VIP Option JP|
|Binex Markets||Goldfinger||Options Express||Vostro Finance|
|Binoa||Go Options||Options Now||We Option|
|Bloombex Options||Grow Binary||Option Winner||Winner Options|
|BNRY Options||GTOptions||Oracle Options||Windsor|
|BO Capital||GTF Binary||Parimatch||World Options|
|Bopcije||Hot Options||PowerOption||XL Options|
|Boss Capital||HY Binary Options||Premium Options||XP Markets|
|BTG Option||iOption||Put n Call||YesOption|
|Brokerage Capital||Interactive Option||Qatar||Zenith Options|
|Bridge Binary||IBFX||Redwood Options||Zerich option|
|Capital Option||IH Options||Regal Options||Zoch Trade|
|Capital Manhattan||IKKO Trader||RegulatedOptions||Zoom Trader|
|Cedar Finance||Insta Options||Royal de Bank||Zone Options|
|City Binary||Insync||Set Option|