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 broker accepts option traders from the United States.
Since no CySEC Regulated Brokers accept traders from America, it is important for traders to understand the problems using an non-regulated broker. Read about broker complaints, withdrawal problems and trading signals.
Popular Binary Options Brokers
GOptions is 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 only $200, learn more.
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.
OptionsXO is a broker using the TechFinancials platform. 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.
TitanTrade is a broker that launched in October of 2013, they offer a 100% signup bonus, see here. They are using the latest SpotOption platform and traders can now trade Forex on the same platform as binary options, read more.
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.