The Cyprus Securities and Exchange Commission is the main regulator of binary option brokers. Based in Cyprus, which is a member of the EU (European Union), CySEC is by far the largest government regulatory agency when it comes to this area of financial markets. Although there are currently over two hundred brokers, the CySEC only gave licenses to about ten binary option brokers. All EU member states recognize the CySEC license of financial investment companies.
The reason traders mostly choose to use a CySEC regulated broker is because of the complaint form (click to view). When a trader has a withdrawal problem at an unlicensed or unregulated broker, who is the trader going to turn too? The sad truth is no one! The trader is basically screwed out of their money.
Here is details about brokers licensed by the Cyprus Securities and Exchange Commission. If the broker you are researching is not on this list, there is a good chance they do not have a license.
24Option – CySEC License #207/13, also registered at FCA, CONSOB and more, A Top 3 Broker Worldwide, Best trading platform, the most assets to trade, see details.
BDSwiss owned by Keplero Holdings Ltd is CySEC licensed and located in Switzerland, read more.
OptionFair is owned by B.O. Tradefinancials Ltd, CySEC license #216/13. In March 2015 they went public on the London Stock Exchange. OptionFair offers risk free trades and a great trading platform with Forex, see here.
Stockpair received a license from CySEC on March 21st 2014. They are a fast growing and popular broker, many pairs to trade, see here.
ZoomTrader owned by Novox, became CySEC licensed in January 2015. They are using the Tradologic platform, see here.