The Binary Options industry is definitely moving forward rapidly when it comes to regulation. Currently, more than twenty five binary option brokers are considered as regulated binary options brokers by CySEC (Cyprus Securities and Exchange Commission), who is based in Cyprus, a member of the European.
The need for regulating binary options, started right when Cyprus had its big financial crisis in 2013, A crisis which led for a big concern among binary options traders and the safety of their invested fund.
That’s when CySEC, really took over and started to check binary option brokers more closely. At the moment, CySEC is by far the largest government regulatory agency when it comes to this area of financial markets.
Regulated Binary Options Brokers in the United States
Binary option brokers are not regulated by the SEC (The U.S. Securities and Exchange Commission) or CFTC (The U.S. Commodity Futures Trading Commission) in the United States. An important fact you must now is that trading with a regulated binary options broker does not guarantee that your funds are secure, and that CySEC does not offer investors the same level of protection of their funds as the US CFTC does.
Regulated Binary Options Brokers in the United Kingdom
The United Kingdom has their own method in which they regulate binary options which means rules and laws they must follow when it comes to binary options.
For the most part any binary options are being regulated by the United Kingdom’s gambling commission. This is only true for places that have regulated gambling equipment present. In instances where no gambling equipment is present then neither the gambling commission nor the FCA (The Financial Conduct Authority is a financial regulatory body in the United Kingdom), will have say over the binary options offered by the firm. In other European areas however, binary options aren’t considered a form of gambling and so they are not regulated in the same manner. Some firms that are licensed and regulated in one area are allowed to do business in others in Europe provided they meet all regulations and protocol first.
There are changes that the United Kingdom has made and these changes can affect the way that binary options are affected. For any citizens of the United Kingdom, both the Gambling commission as well as the FCA warn that they are not in charge of binary options and you should enter at your own risk.
It’s best that anyone who lives in the United Kingdom and wishes to partake in binary options trading, you really need to do your homework and do some research on the company. Make sure the company who is claiming to be a broker is legitimate.
The two largest regulated binary option brokers at the moment are without a doubt, Banc De Binary and 24Option. Both of them are working very hard to make binary options a regulated as that can be highly beneficial for them both. They are already registered with the UK’s Financial Services Authority (FSA), the German Federal Financial Supervisory Authority (BaFin), the Spanish Comision Nacional del Mercado de Valores (CNMV) and the Italian Commissione Nazionale Societa e la Borsa (CONSOB). This of course allows them to legally be active and attract many more new investors from those countries.