The binary options industry have come a long way since it’s early days, way back at 2007. Back in the days there was no such things as regulation for this industry. As a result the amount of scam brokers was skyrocketing! Binary broker were doing whatever the hell the wanted, and many clients lost there money very quickly with no real justification behind it.
Luckily, times have changed and regulation kicked into the binary options industry somewhere in the middle of 2012. Nowadays, there is a significant decrease in amount of reported scam incidents and binary traders fands are a lot more safer.
Unfortunately, there are still many binary brokers who do not have any license from an EU or US financial regulator. In order to ensure Best Binary Brokers users will stay on the safe side, we will explain you how to make sure you will be trading with a binary broker who got license.
1. CySEC License
If your brokers claims he is an EU Regulated Binary Option Brokers, The first thing you should ask for it’s his licence number. All licensed binary options brokers will proudly display their license number on their website. The CySEC license number is a 5 digit number, with a forward slash in the middle.
For example; 24Option is owned by Rodeler Limited which is a company licensed by CySEC, and it’s licence number is number is 207/13.
Be sure to make this check as there are still many binary brokers which are not licensed and not regulated in the European Union.
2. Submit a Complaint
When trading with un-Regulated Binary Option Brokers, in case things goes wrong, you have nowhere to go, and believe me, you don’t want to reach this kind of situation.
Therefore, be smart and use only regulated broker that way you can always fill a Financial Ombudsman.
With a regulated CySec Binary Options broker, you can always submit a complaint via Cyprus Financial Ombudsman via this link Click here.
When trading with an FCA Binary Options broker you will be able to submit a complaint via this link Click here
3. If my broker is not licensed, what should I do?
You should definitely check for alternatives regarding who is better for you as a broker. When you are trading with an unlicensed broker, it means that in case your broker goes broke, your funds are not protected, and in most cases won’t be returned back.
Un Regulated Binary Option Brokers won’t warn you before shutting down their business unlike the regulated ones who must file with their regulator and appropriately notify their clients about their closure. In that kind of situation all funds will be returned to the traders.
Below we have listed for you all the Regulated Binary Option Brokers:
ETXCapital, Platform Provider: Markets Pulse, License #124/721
24Option, Platform Provider: Tech Financials, License #207/13
OptionWeb, Platform Provider: SpotOption, License #175/12
HighLow, Platform Provider: MarketPulse, Australian Licensed
BancDeBinary, Platform Provider: SpotOption, License #188/13
AnyOption, Platform Provider: Proprietary, License #187/12
StockPair, Platform Provider: Proprietary, License #229/14
BourseBinary, Platform Provider: TradeSmarter, License #235/14
ZoomTrader, Platform Provider: Tradologic, License #224/14
TopOption, Platform Provider: TradeSmarter, License #
OptionBit, Platform Provider: Tradologic, License #224/14
BuzzTrade, Platform Provider: AirSoft, License #206/13
PrestigeOption, Platform Provider: TradeSmarter, License #227/14
365trading, Platform Provider: Proprietary, License #092/08
EZtrader, Platform Provider: Proprietary, License #203/13
10Trade, Platform Provider: SpotOption, License #248/14
DragonOptions, Platform Provider: DragonOptions, License #223/14
In case you wish to check the regulation status of your current or future broker you easily run a quick check for the license number of that broker here: http://www.cysec.gov.cy/