Regulated, licensed, authorized or accredited, call it what you want, but change is happening in the binary option brokers industry!
Currently, more than ten 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 broker accepts option traders from the United States.
Since no Cysec Regulated Brokers accept traders from America, it is important to understand the problems with unregulated brokers. Read about broker complaints, withdrawal problems and trading signals.
Popular Binary Options Brokers
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. See here for BeeOptions current signup offers.
Cedar Finance (owned by T.B.S.F. Best Strategy Finance Ltd) is no longer regulated by CySEC. Cedar Finance now accepts traders from America. Cedar Finance is holding a series of trading seminars, view schedule.
GOptions is one of the only binary option brokers 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 only $200, learn more.
OptioNow is a broker specifically for Americans. OptioNow is managed by the same company as Capital Option (a CySEC regulated broker who doesn’t allow American traders). Have a look at their easy to use platform here. They offer a 100% sign up bonus, see here.
OptionsXO is a broker with no minimum deposit requirements. They offer new traders a signup bonus, see here. OptionsXO has bitcoin options available for trading, read more. They also have boundary options, see strategy article.
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.