Best Regulated Binary Option Brokers

Binary option traders will always choose to trade with a regulated binary option broker as oppose to an unregulated broker.

The reason traders choose regulated binary option brokers is because they are looking for an honest broker who will not co-mingle funds from their account with the firms money. A regulated broker ensures that a trader can withdraw their funds from their trading account.

Regulated binary option brokers tend to have a better reputation than unlicensed brokers. In the event that a regulated broker declares bankruptcy, the traders funds are usually protected by the investors fund. For brokers regulated by CySEC, a trader can verify the brokers license here. Traders with complaints about a CySEC regulated broker can submit their complaint to CySEC here.

Brokers in Australia are licensed and regulated by ASIC. The most prestigious license for a binary options broker is from ASIC.

Traders in the United States will not find a European licensed broker that accepts them.

Americans should visit Nadex.com, which is the best CFTC regulated and legal binary options exchange, see here.

Australia Regulated Binary Option Brokers

ASIC Regulated Binary Options Brokers

The highly respected government regulatory agency ASIC in Australia, is now regulating binary option brokers for Australian traders.

HighLow (full review) is the most popular Australian licensed broker, with Free Demo Account and a start account size of only $50, read more.

Investors looking for automated trading robot should first try Option Robot Pro.

This software integrates with a variety of licensed broker.

CySEC Regulated Binary Option Brokers

CySEC Regulated Binary Options Brokers

365Trading is licensed by CySEC and very popular in Europe. Their custom trading platform is easy to use, and the minimum deposit is only $100, see here.

BDSwiss is a CySEC licensed broker that offers both binary options and Forex trading. They operate on the SpotOption platform for binary options and the MetaTrader4 platform for Forex and CFD, see here.

IQ Option is a CySEC licensed and regulated broker. They use their own custom software and have a low minimum deposit of only $10, see here.

Trade Financial is a NEW CySEC regulated broker offering the SpotOption trading platform for binary options. Their minimum deposit requirement is $250, read more.

Other Licensed Brokers

ExpertOption (full review) is licensed in FMRCC in Russia and in Vanuatu. They have a unique trading platform with social trading, see here.

OptionClub (full review) is unique because they are licensed by AFM Netherlands. Option Club offers a low minimum deposit plus free demo accounts, see here.

Financial Regulators in Europe are members of the MiFID, which means that a broker who is registered at the FCA in the United Kingdom, is recognized as a authorized financial service provider by BaFIN in Germany and the CONSOB in Italy.

European regulators recognize binary option brokers as financial services organizations and they must be regulated by their countries regulator. The Cyprus Securities and Exchange Commission is the most widely recognized regulator of binary option brokers. As many brokers are regulated in Cyprus by CySEC this allows them to operate in all European Union member countries. Learn about binary option brokers licensed in Europe here.

Confusion!

Recently, some unregulated brokers have started including this line on their site. “Binary Options are the simplest way to trade the market. They have been available since 2008, and have become regulated in Europe by CySEC in May, 2012.

This does not mean that the broker is licensed by CySEC. It means that CySEC happens to be a regulator but they do not have a license. A trader should look for a 5 digit CySEC license number and then go to CySEC’s website and verify that the license is still valid.

American investors who are looking for a legal CFTC regulated broker should, read this.