Regulated, licensed, authorized or accredited, call it what you want, but change is happening in the binary option brokers industry!
Currently, more than twenty binary option brokers are regulated by CySEC. Cyprus is a member of the EU, and the CySEC license is accepted by all EU countries. Read the explanation of MiFID here. No CySEC regulated brokers accept binary option traders from the United States.
Make sure to read about How to Compare Brokers
Regulated Binary Option Brokers
The only American CFTC licensed binary options exchange available for Americans is Nadex.
If you want to really trade binary options, and not worry about using an offshore broker, then test them out with a demo here. Since their minimum deposit is just $100, you have nothing to lose, visit Nadex.com.
You should also read the Nadex Binary Options Review.
The following brokers are all offshore brokers.
Finpari (read review) is an established broker that offering 3 risk free trades and the popular SpotOption trading platform, read more. Most of their traders use the Binary Option Auto Trader software, see here.
Popular binary option brokers are not regulated by the SEC or CFTC in the United States. A regulated broker is almost always regulated by the Cyprus Securities and Exchange Commission which is a member of the European Union. Using a regulated binary options broker is not a guarantee that your funds are secure. CySEC is not the same as the US CFTC, 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 a binary options trader is to contact a regulated broker and ask where trading account funds are deposited, and what guarantee, if any, the broker can provide to ensure your money is safe.
Traders should open accounts with two different regulated binary option brokers. Test out the trading platform, test the withdrawal procedures and ensure that it is easy to make withdrawals.