A regulated binary options broker is almost always regulated by the Cyprus Securities and Exchange Commission which is a member of the EU. There are a few regulated brokers who still accept traders from the United States. Using a regulated binary options broker is not a guarantee that your funds are safe. Scroll down to read more.
Regulated Brokers for American Traders
The best option for traders in the United States that want to trade with is a licensed and regulated broker is to go with a broker like EZTrader, Cedar Finance or Regal Options who are all regulated by CySEC and allow traders from the USA.
Cedar Finance (owned by T.B.S.F. Best Strategy Finance Ltd) just received a license from CySEC on Sept 12th, 2013 see it here. Cedar Finance accepts traders from America and they are in the top 10 list of binary option brokers by monthly trading volume. Cedar Finance is holding a series of trading seminars, view schedule.
EZ Trader (owned by WGM Services Ltd) received their CySEC license on June 20th 2013. EZ Trader offers new traders up to $2500 match on new deposits view offer. They are one of the few regulated binary option brokers for Americans, read more.
RB Options is a broker who “adheres to the most strict rules and regulations dictated by the the Ontario Securities Commission (OSC) hence Canadian legislation”. However RBOptions is not currently regulated by the OSC, but they are pursuing regulatory oversight and hope to be the first Canadian Regulated Binary Options Broker. RBOptions is giving away a free iPad Mini for new traders, read more
Additional Brokers To Consider
BeeOptions is a new broker that has become very popular in the United States. BeeOptions is now rapidly expanding into Germany with their new team that recently joined them from iOption. BeeOptions is not Cysec regulated, but prides themselves on taking good care of their customers. BeeOptions offers “risk free” trades and other bonuses to new traders, read more.
GOptions is an unregulated broker, accepting traders from America. They are one of the only binary option brokers to provide an “auto trader” called Signal Index, see here. GOptions offers traders 4 risk free trades, see here.
ZoomTrader is a broker that accept traders from all countries, no restrictions. They are going to apply for regulation next year. Meanwhile, they are based on Tradologic platform which is regulated by the main regulators worldwide (FSA, CYSEC, FSA Japan and Belize IFSC). Zoomtrader has a great multilingual platform, see more.
General Information About Regulated Brokers
Popular binary option brokers are not regulated by the United States SEC or CFTC. Currently, a regulated broker is almost always regulated by the Cyprus Securities and Exchange Commission which is a member of the European Union. There are a few regulated brokers who still accept traders from the United States. Using a regulated binary options broker is not a guarantee that your funds are secure. The Cyprus SEC is not the same as the US SEC, and does not offer investors the same level of protection of their funds. It is questionable if CySEC offers protection to traders located outside of Cyprus, although EU countries recognize CySEC regulation as a proper financial authority due to their EU member status and the rules of Mifid.
The issue of broker regulation came to light during the Cyprus financial crisis in 2013. Many binary option traders were concerned about the safety of their trading accounts. The best option for binary options trader is to contacting the regulated broker and find out where funds are deposited, and what guarantees if any the broker can provide to ensure your money is safe. Traders should always try out a few regulated binary option brokers first before putting all their funds with one broker. Test the brokers withdrawal procedure and see that they do not give you problems when you withdraw your money. Keep your account balance low, so that in the event that your broker has financial troubles, you will not find yourself out of thousands of dollars.
Of the top 3 binary option brokers; Banc De Binary, AnyOption, and 24Option; the first to be regulated in Cyprus was Banc De Binary, and they came in at number 3 in terms of monthly trading dollar volume for 2012. As of Sept 2013, all 3 brokers are now regulated by CySEC.
The two largest regulated binary option brokers, Banc De Binary and Top Option, are working hard to make binary options a regulated investment tool. Banc De Binary stopped accepting American traders December 2012 as they were said to be in talks with the CFTC (U.S. Commodity Futures Trading Commission) about getting licensed as a regulated binary options broker in the United States. As a result of their efforts, they are now registered with the UK’s Financial Services Authority (FSA), the German Federal Financial Supervisory Authority (BaFin), the Spanish Comision Nacional del Mercado de Valores (CNMV) and the Italian Commissione Nazionale Societa e la Borsa (CONSOB), following Cyprus’ leap in the regulation of binary options. This allows them to legally accept new investors from the UK, Germany, Spain and Italy.