Regulated, licensed, authorized or accredited, call it what you want, but change is happening in the binary option brokers industry!
There are now ten binary option brokers regulated by CySEC, the primary regulator of binary option brokers. Cyprus is a member of the EU, and the CySEC license is accepted by all EU countries. There are no CySEC regulated binary option brokers who accept binary option traders from the United States.
Popular Binary Options Brokers
MarketOptions accepts American traders! MarketOptions uses the latest version of the SpotOption platform, see here. They offer traders broker provided signals, see here. Minimum deposit is only $100 for new accounts, signup here.
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.
BeeOptions is a new broker that has become very popular in the United States. BeeOptions is not CySEC regulated, but prides themselves on taking good care of their customers. BeeOptions has a monthly raffle for a cruise and other great prizes, read more.
Cedar Finance (owned by T.B.S.F. Best Strategy Finance Ltd) was regulated by CySEC. On Dec 19th CySEC suspended TBSF’s license, read more. 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.
OptiMarkets is a broker using the Tradologic platform offering 60 Second, 2 & 5 Minute options. They have a trading simulator, see here. They accept American traders and minimum deposit is $200, read more.
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.
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 regulated by CySEC.
The two largest regulated binary option brokers, TopOption and Banc De Binary 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. TopOption does not accept traders from the United States or Canada.