Risk and regulatory notice: Binary options are high-risk, all-or-nothing products and may be prohibited or restricted for retail customers where you live. You can lose the full amount committed to a trade. Verify the legal entity and its authorisation in an official regulator register before sending money or identity documents. This page is general information, not personal financial advice.
It’s hard to find an honest binary options broker. A lot of brokers are based in multiple countries that own low regulatory requirements. And many brokers have low capital inquires.
But, there are ways to make an easier job out of this.
Recently, the binary options broker industry has grown a lot and gained popularity.
Finding a regulated broker that owns a license is really hard. This kind of trading investment is practically new. This means that there are too many brokers, which people find hard to trust.
Binary options trading is not an easy job. Any mistake can mean important money losses and not making profits. So it is understandable that people are selective with the broker they choose.
But, what are binary options?
Binary options are a trading process where the trader guesses the direction of the price of an asset. This is made through some brokers that offer assets like gold or silver. As such, this is a market where the most important thing is to have luck and to make the right predictions.
However, finding the perfect broker is difficult. Not all of them have the legality that you are looking for.
Of course, you can use several ways to detect if a broker is a possible scam.
For example, you can find many brokers that try to offer you money just by registering. Some have different slogans that say you will make huge profits in a short period of time.
Regulatory authorities
There are many regulatory authorities. The most popular and with good reputation are ASIC (Australia), VFSC (Vanuatu), CySEC (Europe), CFTC (USA).
I discussed the following brokers in the original version of this article:
I covered ExpertOption in my archived ExpertOption review. The broker’s current disclosure describes membership in the Financial Commission, an independent dispute resolution body.
Unregulated and good brokers are difficult to find. After a long research I made, the only two you can trust are Ayrex and Spectre.ai. In fact, the second one is broker-less and is partially regulated.
If you find a broker that proclaims to be regulated, you can just search the number of their license.
Fake regulation
Some brokers claim to be regulated. But I was not able to find their licenses or their regulator authorities.
Let’s take RaceOption and BinaryCent for example.These brokers have a badge of regulation on their website. But they do not mention the authority or a license anywhere.
Conclusion
Stay away from brokers that promise easy money.
But most important, stay away from brokers that say they are regulated but they do not mention the authority or license.
