Binary Options Brokers

Binary Options are the financial instrument simple to understand, that’s why it is indeed a popular trading choice. A binary option works as an option to trade FX, stocks, indices, commodities with pricing through a high-low or fixed-return through a defined expiration date and strike price. In simple words, it means that the broker establishes the price, data, payout and risks, while the trader simply betting the price movement either it will go up or down. In return, the trader gains the fixed rate or payout, which is paid regardless of the moving step, while the incorrect “guess” causes loss of the investment.  In addition, the trader should make his decision within a certain time, ones the time frame is over the option is claimed expired.

• While Binary Options may be used in theory to price the asset, it also means they can be fraud, due to almost full control over the data by the Broker. In a result, many world jurisdictions and regulators placed options as a form of gambling and even restricts their use.

However, due to the high demand and relative ease of binary trading that allows many investors to engage, some of the world leading companies establish options operation either with regulations or just by follow simple registration as the offshore entity. In this case, you should be extremely aware that trading with a non-regulated or broker registered only at offshore zone the risk to fall under the fraud and lose funds is very high. The official statistics show unbelievable high amounts that were loosed due to fake of Binary Option providers, indeed it does continue frequent and increasing promotion among the world population.

• If you decide to trade Binary Option choose only among well-regulated companies that holds multiple registrations and are truly regulated by the world authorities alike FCA, ASIC or others. What is more, recognizing the need, one of the popular European trading authority – CySEC proclaimed binary options as an investment instrument while other regulators following the initiative in order to protect traders as a first.