Binary Options Regulations

As you’ll come to learn as a regular visitor at BinartyTrader.org, working with a regulated broker is one of the most important decisions you’ll ever have to make as a trader. A regulated broker must comply with the local regulatory authority to provide a service that is fair, transparent and one which protects your interests in every eventuality. Many regulatory licenses come with a level of trader compensation, which protects your deposits up to a certain level, should the broker become insolvent or expose himself to more risk than he can handle.

Different jurisdictions are monitored and authorized by different regulatory bodies. If for instance you are a U.S. based trader you will be required to trade only with a U.S. licensed operator. As a trader that works with a European licensed broker you will have the option to trade with brokers from any other member state, where EU licensed brokers may passport their services.

The main regulators you’ll come across again and again are the FCA in the UK, ASIC in Australia and CySEC in Cyprus.

While it is recommended to trade with a regulated broker, that’s not to say that non-regulated brokers are all scams. Not at all, but it does mean that your best interests are not protected and you will find it very hard to lodge a complaint. Additionally there will be no one to turn to should the broker not be forthcoming in processing your withdrawals.

If you are trying to decide between a regulated and non-regulated broker, we would always say go regulated. If however you like the facilities and service of a non-regulated broker you can start by depositing a low amount to test out their product and service first.