Why You Must Trade in Binary Options With Regulated Companies

The popularity of binary options trading is has grown by leaps and bounds after the introduction of online platforms in 2008. Even it is highly regulated in the US and traders have only limited options available to them. However, in Europe and rest of the world, a number of online binary options trading platform providers have set up operations. Over the years, the regulatory environment has become more stringent with most of the major binary options providers in Europe being regulated by the Cyprus Securities and Exchange Commission (CySEC). Other countries around the world have also started introducing regulatory framework to prevent scams.

The growth in the popularity of binary trading can be attributed to the fact that both seasoned traders and beginners find binary options trading to be simple, easy to understand and straightforward. Moreover, trading in binary options offers a great deal of certainty as far as the rewards and risks are concerned. There are other benefits as well that attract traders to binary options. Some of the benefits are listed below:

  • The potential to earn high returns on investment
  • The risk and reward are known even before placing the trade
  • The possibility getting a part of the investment returned even if the prediction is wrong
  • Binary options are easy to trade and are not as complicated as forex trading
  • As the turnover rate is fast, profits accumulate quickly in the trading accounts
  • Select brokers offer free trading accounts
  • Different types of assets are made available for trading
  • Access to more number of assets
  • It is easy to get started as far as beginners are concerned
  • It creates excitement as the possibility of making a lot of money quickly is very high

This in turn has led to the proliferation of binary options trading platform providers. Some of them are reliable, but many of them are not so. Therefore, it is important that you work with regulated binary options companies if your goal is to become successful as a binary options trader.

Here are some of the main reasons why you should always work with regulated binary options brokers:

#1: When trading binary options, you buy Call or Put contracts directly from the broker on whose platform you have opened a trading account. Therefore, it is important that you deal with a platform provider that is reliable and trustworthy. This is because only such brokers provide accurate advice, quote a fair price and pay you a reasonable return on your investments when your options contracts finish in-the-money by the specified expiration time. When working with regulated binary options companies, you can be sure that they will provide you with best service at all times and on all areas related to trading.

This is because financial authorities in countries stipulate a set of conditions that binary options companies have to comply with. Regulated companies are those that have satisfied these stipulations. Further, the authorities monitor the operation of these companies on a regular basis. Therefore, such brokers often do not involve in malpractices.

#2: Binary options companies that are regulated maintain your funds and that of the company’s in separate accounts. This is to ensure that your hard-earned money remains safe and secure. In the UK, binary options companies that are regulated report compliance to this this effect every month.

#3: Additionally, regulatory authorities ensure that the binary options companies that apply for licenses are adequately capitalized before authorizing them to operate binary trading platforms. Regulators also verify and make sure that the systems employed by them for delivering quotes in real time and payouts they promise for winning trades are reasonable and fair.

However, the capital base to be maintained by these companies may vary from country to country. For example, a binary options company offering trading platform in Malta should have a capital base of 730,000 Euros as per the Malta Financial Services Authority stipulations. This ensures the financial stability of the company.

#4: Regulated binary options platform providers adhere to norms and are transparent in their dealings.

#5: Finally, such companies pay you on time and you can take it up with regulatory authorities, if they fail to do so. If you work with a binary options company that is not regulated, you cannot expect to get legal support.

Some of the recommended binary options companies are as follows:

Broker Min.Deposit Features Score Visit Site
Binary.com $5
  • Min.Deposit : $5
  • Regulated By MFSA, MGA, MiFID
  • Deposit Options: Credit/ Debit Card, Wire Transfer, WebMoney, Skrill, Netteller, Indonesian Local Deposit
  • Payouts : 80-90%
9.7Review Visit Site
IQ Option $10
  • Min.Deposit : $10
  • Deposit Options: Credit Card, Wire Transfer, Skrill, Qiwi, WebMoney, CashU, iDeal, Fasapay, Neteller, Boleto
  • Payouts : up to 91% **Amount to be credited to account in case of successful trade*
9.7Review Visit Site

IQ Option

IQ Option was established in 2013. The company, regulated by CySEC, is owned and operated by Iqoption Europe ltd in Cyprus. They take a “no frills” approach and offer binary options trading mainly to Russians and do not entertain clients from the US.

Trading platform: Proprietary platform that supports multiple languages
Demo platform: Available
Mobile enabled: Yes
Trade Types: Classic High/Low binaries
Payout for successful trades: Up to 92 percent
Account types: Real/VIP
Minimum deposit: USD10/USD 1000
Withdrawal: Minimum USD10
Asset Index: Total 78 (Commodities – 1, Currencies – 22, Indices – 6, Stocks – 49)

24option.com

24option, based in Cyprus, started its operations in 2010. The company is owned as well as operated by Rodeler Limited. Rodeler is authorized and regulated by the CySEC. US Traders cannot open an account on 24option platform.

Trading platform: TechFiancials platform that supports multiple languages
Demo platform: Available
Mobile enabled: Yes
Trade Types: High/Low, Above/Below; One Touch – Touch/No Touch and High Yield Touch; Boundary and High Yield Boundary; Short Term – 30 and 60 seconds, 2 minutes and 5 minutes
Payout for successful trades: Up to 89 percent
Account types: Standard, Silver, Gold, Platinum and Diamond
Minimum deposit: USD250
Withdrawal: Minimum USD10
Asset Index: Total 103 (Commodities – 11, Currencies – 30, Indices – 19, Stocks – 43)

Binary.com

BetOnMarkets.com, established in 1999 and based in Malta and the Isle of Man, was rebranded as Binary.com in 2013. The company, owned and operated by Regent Markets Group, is regulated in both Malta and the Isle of Man. This broker also does not allow US traders to open accounts on their platform.

Trading platform: Proprietary platform that supports multiple languages
Demo platform: Available
Mobile enabled: Yes
Trade Types: Rise/Fall, Higher/Lower, Touch/No Touch, In/Out, Asians and Digits
Payout for successful trades: Up to 110 percent
Account types: One account only
Minimum deposit: USD5
Withdrawal: Minimum withdrawal amount not specified
Asset Index: Total 68 (Commodities – 7, Currencies – 13, Indices – 19, Stocks – 29)

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