Top Rated Online Brokers
Fake Broker Alerts is a website dedicated to new traders and investors, looking to find accurate information about licensed Forex brokers.
You will learn how to distinguish between a fake broker, and an established licensed firm. Deciding which broker to use is not an easy task for a new trader. There are many online brokers for Forex and Binary Options trading, and many of them are unlicensed scam companies.
Forex and Binary Options brokers are divided into two categories; Licensed and Unlicensed, Regulated and Not Regulated. The best broker to use for someone living in London, United Kingdom is much different than a suitable broker for an investor in Miami or Sydney, Australia. There are also many factors a trader must consider before choosing a broker.
Finding The Best Brokers
The best brokers are always licensed and regulated by the financial regulator in the country that they are based in. Most of the top binary option brokers are based in Cyprus, and they are regulated the Cyprus Securities and Exchange Commission, also known as CySEC. CySEC was the first financial regulator in the European Union to regulate binary option brokers. The European law called MiFID, allows a financial firm regulated in one country, to do business and provide services in other European Union member countries.
Binary Option Exchanges in the Unites States of America are licensed and regulated by the CFTC, see here. Australia licensed binary option brokers via their regulator called ASIC. There are a few brokers already licensed by ASIC, see here.
Although there are over 200 brokers worldwide, less than 20 brokers are licensed and regulated by CySEC. Recently, unlicensed brokers have made mention to CySEC regulation of binary options on their websites, however they are not licensed brokers.
It is incumbent upon investors to verify that the broker they choose, is actually a licensed broker, and that the brokers license in still valid.
How to Compare Online Brokers?
Here are five items that every trader should review when comparing a new broker.
- Are They a Licensed or Unlicensed Broker?
- Which Trading Platform Are They Using?
- What is the Minimum Deposit to Open an Account?
- What are the Term of Their Bonus Offers?
- Do They Have Any Unique Assets or Service?
When an investor has the answer to these five questions, it is easy to make an educated decision about which broker is the best.