Trusted Binary Options Brokers
Currently, many of the most commonly used binary options brokers in the world do not fall under the regulatory control of either the SEC or the CFTC within the United States. In most cases, regulated brokers are licensed under the Cyprus Commission, known as CySEC, which controls the financial markets within the European Union.
It is important to note that there are many brokers that are trusted binary options brokers that don’t participate in the kinds of regulation that you might expect. Even amongst regulated brokers, it is never a guarantee that your funds are completely secured. The regulations put out by CySEC are very different from the regulations required by US entities and do not provide the same degree of protection for accounts and funds. Even if you use a CySEC regulated broker, but reside and trade from the US, it is difficult to know if the CySEC regulations will apply to your accounts.
When problems hit the financial markets in Cyprus back in 2013, concern began to grow for investors who had been led to believe that CySEC regulations would protect their funds. As of the most current recommendations, binary options traders should always contact their brokers before signing up for an account and depositing funds to discover where any funds from the account are held and what kinds of guarantees that broker can offer regarding the security of the money in your account.
It is not impossible to find and work with trusted binary options brokers, even if they are not regulated, but it does take a little bit more work to find the right ones. As a general rule, the most trusted binary options brokers on the market will offer demonstrational accounts, allowing you to sample their services before you commit real funds into their trade services. Additionally, they should be very transparent about their trading terms and conditions, including any limitations on how often you can withdraw funds and how you can transfer money into and out of your account.
While there are risks associated with any kind of financial trading, you can help to minimize the chance of mishandled funds when you find the right trusted binary options brokers to work with, you can feel confident in the security of your accounts while enjoying the additional benefits of great features and helpful educational and analytical tools to increase your profits over the long term.