What is a Regulated Binary Options Broker?
A binary options broker who is regulated will have obtained a license from an authority (or regulator). This binary options broker must then follow a very strict charter imposed by the said authority (or regulator). This is a good mark of transparency for the client and is therefore an important assurance.
What is the Difference Between a Regulated and Unregulated Broker?
A regulated binary options broker must meet a number of strict criteria whilst an unregulated binary options broker can basically do whatever they want. With regulation bank accounts are usually segregated in order to ensure the payment of clients regardless of the solvency or the financial situation of the company. Further criteria are also in place to ensure the authenticity of the quotations of assets traded so that the client can assume there will be no foul play with the price feed. Unregulated binary options brokers are not monitored by anyone and only have themselves to answer to.
Does Regulation Guarantee Quality and Transparency?
Unfortunately even regulation doesn’t guarantee anything but it does at least mean that the binary options broker in question has to answer to someone. It has been known in the past for regulated brokers to go bankrupt and the so called ‘authority’ is not able to protect the clients funds. The best thing to do is to find a regulated company that has been around for many years and has established themselves as here to stay. It is also worth mentioning that an unregulated binary options broker is not by definition a scam or a broker that has no ethics towards their clients. They may have a license pending or they may just be above board, you will need to use your best judgement when choosing a binary options broker.
Recommended Regulated Binary Options Brokers
Binary Options Broker A:
The first binary options broker we have selected for you is a company founded in 1999 and licensed in Malta and the isle of Man regulated by the IOM. They offer binary options trading of Forex, Indices, Stocks and Commodities and on the up/down trades that we like so much here they offer up to 100% returns which is unheard of. The minimum account size is $1 and the maximum is $100,000, they currently serve over 300,000 live accounts. Trade size is completely up to you and something you enter manually and their interface is very easy to use, they offer a no strings demo account to try.
Binary Options Broker B:
The second binary options broker we have selected for you is a company founded in 2010 and licensed in Cyprus regulated by CySec. They offer binary options trading of Forex, Indices, Stocks and Commodities and on the up/down trades that we like so much here they seem to average around 70-88% per successful trade. The minimum account size is $250 and the there is no maximum, it is unknown at this time how many live accounts they serve. Minimum trade size is $24, their interface is very easy to use and they offer a demo account to try but you do have to first sign up for a live account. As always; keep in mind that investors can lose all their capital by trading binary options