Binary Options Brokers
What are Binary Options?
Binary Options as 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 and a defined expiration date and strike price.
In simple words, it means 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 the loss of the investment. In addition, the trader should make his decision within a certain defined time, and ones the time frame is over the option is claimed expired.
Read more about Binary Option via Wikipedia.
Regulation by Countries
While Binary Options, in theory, may be used to price the asset, it also means there is a risk they can be fraud, due to almost full control over the data provided by the Broker. In a result, many world jurisdictions and regulators placed options as a form of gambling, fraud and restrict their use. So there is a first category where Binary Options trading is illegal and banned for distribution and trading which including US, European Union, Belgium, Canada, Israel, etc.
Yet, there is a second group of the countries that regulated Binary Options as trading instrument due to the high demand and relative ease of binary trading that allows many investors to engage, some of the world-leading companies to establish options operation either with regulations or just by follow simple registration as the offshore entity.
- Alike recognizing the need, one of the popular European trading authorities – CySEC proclaimed binary options as an investment instrument while other regulators following the initiative in order to protect traders as a first. After detected fraudulent activities for the past years, now CySEC heavily oversees Binary Brokers and imposing penalties and fines in case of violation against its legislation. CySEC Binary Option regulation.
In any case, Binary Options are still very popular among offshore brokers, and 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 and firms with a good record that holds multiple registrations by the world authorities alike FCA, ASIC or others.
Best Regulated Binary Options Brokers
Below you will find a listing of the Best Reviewed and most important regulated Brokers with a good record that offering Binary Options also with some narrowed criteria ranked.
- BDSwiss – Best Overall Regulated Binary Options Broker 2020
- InstaForex – Lowest Spread Regulated Binary Options Broker 2020
- GO Markets– Best MT4 Regulated Binary Options Broker 2020
- Alpari– Best for Beginners Regulated Binary Options Broker 2020
- Nadex – Best Regulated Binary Options Broker in US 2020
The complete List of Binary Options Brokers
This is the complete list of reputable and regulated brokers that offer a Binary Options:
Min. Deposit: 50 US$
Max. Leverage: 1:30
Trading Platforms: MT4
Regulation: FCA, SFC, JFSC
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