Regulated Binary Options Brokers

regulated binary options

This page is a directory of binary options brokers that are currently regulated by CySEC. CySEC (Cyprus Securities and Exchange Commission) has become the de facto regulator of binary options in Europe.

Choosing a binary options broker regulated by CySEC will ensure that all of the funds you deposit will be secure and held in a segregated bank account. You’ll also receive more legal protection and recourse should you have any complaints with your broker.

CySEC Regulated Binary Options Brokers:

Broker Info Bonus US Traders Open Account
Binary Globes Spread:
Leverage:
Minimum Deposit: EUR/USD 200
Demo Account: No
50% Welcome Bonus Visit BrokerRead Review
PlanetOption Spread:
Leverage:
Minimum Deposit: $250
Demo Account: No
Up to 4% Extra Payouts Visit BrokerRead Review
OptionTime Spread:
Leverage:
Minimum Deposit: $200
Demo Account: No
Up to $2500 Bonus! Visit BrokerRead Review
HY Options Spread:
Leverage:
Minimum Deposit: $250
Demo Account: No
50% Welcome Bonus Visit BrokerRead Review

About the Regulation of Binary Options:

Since their launch during the mid-2000s, binary options have been regarded by many investors to be the wild west of monetary investment because they were categorized as merely another version of gambling in contrast to a proper fiscal mechanism.

For instance, many leading binary options brokers are situated in offshore tax havens, such as Cyprus (CySEC). This characteristic alone is quite a concern when taking into consideration the delicate state of the economic and financial structures of that small country.

Until lately, the binary options market has just had to abide by minimal laws and regulations. As a result, the world-wide-web became flooded with broker malpractices, such as locked-up funds and withdrawal nightmares, etc. To handle and deal with such issues, the binary options marketplace is now in the process of undergoing significant modifications with the majority of the world’s leading nations currently launching stricter regulatory management over those brokers that operate within their legal jurisdiction.

Why Regulation is Important?

Since their creation during the 2000s, binary options have been assessed by many economic authorities to be the ‘wild west’ of trading because they were originally labeled as merely another type of gambling as opposed to a real form of investment. For example, many foremost binary options brokers have their principal head-offices situated in offshore tax retreats, such as Cyprus, etc. This facet by itself has developed into a significant issue recently because of the delicate condition of the banking and finance institutions of that small island.

Until lately, the binary options brokers have simply had to fulfill the prerequisites of minimal restrictions and legislation. Consequently, this marketplace became deluged with scary reports of broker violations, such as withdrawal issues and locked-up cash, etc. This situation deteriorated to such a level that the overall binary options industry is now going through substantial modifications. For instance, many nations worldwide are currently instigating sterner regulatory guidance over the binary options brokers that function within their authorized dominion.

So, why enroll with a regulated broker? This is because after a binary option broker successfully obtains a license from the national regulatory authority of its country of residence, then it must conform exactly to the stipulations specified by that establishment in order to offer its binary options products and services legally. Basically, the clientele of fully regulated brokers are eligible to receive advanced levels of protection for their invested funds as well as enhanced transparency regarding all facets of their speculating pursuits.

Main Binary Option Regulators around the World

Most the principal countries in the world have installed authorized bodies which regulated their binary options marketplaces. The subsequent table identifies some of these key institutions:

Country

Regulator

TITLE

USA

CFTC

Commodity Futures Trading Commission

EUROPE

CySEC

Cyprus Securities and Exchange Commission

UK

FSA

Financial Service Authority

CANADA

None

N/A

AUSTRALIA

ASIC

Australian Securities and Investments Commission

SOUTH AFRICA

None

N/A

UNITED ARAB EMIRATES

DIFC

Dubai International Financial Center

RUSSIA

FFMS

Federal Financial Markets Service

The regulatory status of the binary options business is presently developing at a rapid pace around the world. The ensuing sub-sections describe the current standing of a number of prominent countries.

2.1 USA

The CTFC was created in 1974 as a result of the Commodity Futures Trading Commission Act authorized by the US Congress in that year. The primary undertaking of the CFTC is to regulate the futures market including binary options in order to safeguard traders form scammers and deceitful brokers. Consequently, the CFTC aims to keep the US monetary markets in a dependable state so that they are fully transparent and competitive containing no concealed expensive surprises for the less experienced.

The recent launch of the Dodd-Frank Act has also had considerable influences on the binary options industry in the USA. This Act was devise mainly to produce more protection and safety measures for North American investors following the devastating consequences attributable to the 2008 financial meltdown.

For example, traders can no longer lawfully trade Forex and the stocks markets using binary options. However, initiating binary options based on indices and commodities is still completely lawful. This Act will have huge ramifications for this marketplace in the USA in the foreseeable future. Perhaps, the largest impact of the Dodd-Frank act already is that it has specifically resulted in brokers now being officially categorized as USA-friendly or not USA-friendly. The first group can admit USA citizens as new customers whereas the latter cannot.

2.2. Canada

Canada does not possess an acknowledged regulator that has been specifically authorized to oversee its binary options industry. In addition, no legal specifications are presently enforced stopping Canadians from speculating on this investment sector. In fact, a number of primary brokers have their main headquarters located within Canada.

This nation used to be assessed as a small player in the binary options marketplace even up to very recent times. However, a dynamic increase in interest since then as witnessed a surge in Canadians speculating on binary options. One of the key motives behind this expansion is that Canadians do not need to worry about any legal consequences arising from their trading pursuits.

2.3 UK

The foremost brokers operating within the UK are regulated by the Financial Control Authority (FCA). The original regulatory authority in the UK was the Financial Services Authority (FSA) which was completely replaced on the 1st April 2013 when it was divided into the PRA (Prudential Regulatory Authority) and FCA. The main objective of the FCA is to safeguard the welfare of investors speculating on the UK financial markets.

Consequently, if you aiming to commence such activities then you are recommended to choose a binary option broker that is regulated by the FCA. You can rapidly validate if any broker of interest fulfills this vital stipulation by visiting the approved FCA website at fca.org.uk.

2.4 Europe

Since the start of 2013, the binary options market of the Eurozone has been regulated by the Cyprus Securities and Exchange Commission (CySEC). The chief objectives of CySec are defined as follows:

1. Police the binary options market within the Eurozone.

2. Evaluate and control all brokers supporting binary options products and services in order to root out criminal activities, money laundering and fraud, etc.

3. Validate the honesty and dependability of all data delivered to the general public by binary options brokers including financial reporting, advertisements and promotional materials, etc.

4. Verify that all financial dealings implemented by binary options brokers are honest and fully transparent.

5. Protect the trading capital deposited by investors with their binary options brokers from mishaps, such as bankruptcy or other major fiscal misfortunes, etc.

2.5 Australia

The binary option marketplace in Australian is monitored by the Australian Securities and Investments Commission (ASIC). This body licenses and controls companies functioning within the fiscal sector in order to guarantee that they implement honest and transparent operational policies. Consequently, the ASIC helps in endorsing and enhancing Australia’s status for performing financial transactions in a professional manner supported by total integrity.

The ASIC has the obligation to police bodies such as banks, financial companies, credit unions and mortgage brokers, etc. The leading goals of the ASIC are the following:

  1. Impose all appropriate regulations and laws on the Australian financial markets.
  2. Amass, verify and display the fiscal records of regulated firms. This information must provide a precise account of the financial performance of these companies over any stated time frame in order to enable trades make informed judgments.

2.6 South Africa

The Bond Exchange of South Africa (BESA) launched an innovative trading platform in 2007 allowing South African traders to speculate on binary options for the first time ever. After this platform was fully endorsed; South Africans commenced utilizing it to trade the financial markets during December 2007. Since that time, the acceptance of binary options has enjoyed a substantial surge in interest.

However, recent analysis has verified that presently the South African binary options industry is not policed or monitored to any extent by any of the country’s principal regulatory authorities, such as the Securities Services Acts or Financial Services Board, etc. As such, this is a market sector supplying minimum protection for South African traders.

2.7 United Arab Emirates (UAE)

The UAE has two distinct financial regions possessing independent regulatory bodies controlling their binary options operations. The Dubai International Financial Center (DIFC) is monitored by its own internal regulator titled the Dubai Financial Services Authority (DFSA). The rest of the UAE is policed by its own regulatory authorities, such as the Central Bank of the UAE, Ministry of Economy Planning and the Emirates Securities and Commodities Authority (ESCA).

In 2004, the DIFC was launched with the central purpose of generating a first-class fiscal amenity within the Middle East. The DFSA has significant clout allowing it to persecute criminals involved in fraud and money laundering. The remainder of the UAE is different from the DIFC in that it does not harbor just one specialized binary options regulator. The Central Bank is responsible for monitoring the regulation of banking and trading pursuits while the ESCA overseas important sectors of asset investment.

Recent Changes

You need to appreciate that regulatory updates in the binary options marketplace are presently advancing at a rapid pace. For example, although you would have been limited previously to registering just with binary options brokers situated in off-shore tax havens, such as the Gibraltar, Cayman Islands and Cyprus, you can now enjoy a global selection.

A number of important developments have occurred in recent months including:

  1. EZ Trader successfully acquired a license from the CySEC on June 20th 2013. This broker is owned by WGM Services Ltd and is presently accepting clients from the USA.
  2. Cedar Finance gained its CySEC license on Sept 12th, 2013. This firm is controlled by T.B.S.F. Best Strategy Finance Ltd and is again USA friendly.
  3. OptionsXO collected its CySEC license on July 11th 2013. This company is owned by YTF Trade Limited and is also USA friendly.
  4. Possibly the biggest event that occurred in recent weeks is the news that iOption is going out of business. Although no official announcement has been published yet and the website is still active, confirmation is expected to be release in the imminent future.

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