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
Since all CySEC regulated brokers do not allow American traders, it is important for traders to understand the problems using an unlicensed broker. Read about broker complaints, withdrawal problems and trading software scams.
Popular Binary Options Brokers
Additional Brokers To Consider
BeeOptions opened in May 2013 and is a very popular broker with traders from America. BeeOptions is not CySEC regulated, but prides themselves on taking good care of their customers. Click here for BeeOptions latest special offers.
GOptions is one the few binary options broker to provide an “auto trader” called Signal Index, read more. GOptions will setup a Demo account for you along side your regular account to paper trade. Minimum deposit is $200, learn more.
Magnum Options is a new broker that is gaining popularity quickly. After Redwood Options stopped accepting traders from America, Magnum stepped in and started accepting a lot of American traders. They use the SpotOption platform and focus heavily on client training and education, see here.
Regal Options owned by P.M. Investment Capital Ltd, uses the Tradologic platform which offers range binary options, and 15 second options, see here. They are integrated with the trading signal software BinaryTraderPlus.
General Information About Regulated Brokers
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 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 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.