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 European Union, and the CySEC license is accepted by all EU countries. Read the explanation of MiFID here. No CySEC regulated brokers will accept binary option traders from the United States. A few brokers are licensed by ASIC in Australia.
Make sure to read about How to Compare Brokers
Regulated Binary Option Brokers
The largest American CFTC licensed binary options exchange, is at Nadex.com. If you want to really trade binary options, and not worry about using an offshore broker, then test them out with a free demo account here.
Their minimum deposit is only $250, and they process withdrawals very quickly, go visit Nadex.com.
The following brokers are all offshore 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 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.