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Binary Options Broker Regulation Is Important

January 05
19:25 2014

If you haven’t heard of binary options yet you may not have been researching for the best way to maximize the return on your investments. Binary options, which was not that well known until 2010, is increasing in popularity and giving the average trader an amazing opportunity to generate profits in a simpler form. Binaries are different than traditional forms of trading in many ways, especially when it comes to the amount of regulation that is involved in the industry. Due to the immense increase in popularity, binary options trading has led to an overnight broker platform frenzy, opening the door to scams and loss of client deposit.

Regulation Explained

Regulation creates, limits, or constrains a right, creates or limits a duty, or allocates a responsibility. Regulation can take many forms: legal restrictions promulgated by a government authority, contractual obligations that bind many parties (for example, “insurance regulations” that arise out of contracts between insurers and their insureds), self-regulation by an industry such as through a trade association, social regulation (e.g. norms), co-regulation, third-party regulation, certification, accreditation or market regulation. In its legal sense regulation can and should be distinguished from primary legislation (by Parliament of elected legislative body) on the one hand and judge-made law on the other.

In simple terms regulation is there to protect the user, or in this case the trader like me and you. Without a broker being regulated or required to follow rules and standards they can pretty much do as they please and this does include running away with your money! Shocking but a fact. You’d be surprised and dumb witted if you knew half the stuff going on behind non regulated broker firms- if you can even call them that.

Some Facts You Might Not Want To Know

What I am going to share with you here are well kept secrets in the binary industry, fooling newbies that jump at the opportunity, thinking that they are going to become millionaires overnight.

  • The first binary options broker(s), AnyOption and TraderXP started in Israel
  • SpotopOption, the technology behind 90% of the brokers sit in the same building as the above to mentioned brokers in Israel
  • 99% Of non regulated brokers are also in Israel with virtual offices and contact numbers in other countries like Cyprus
  • Non regulated brokers DO NOT require any documentation from their clients for deposits or withdrawals
  • Non regulated broker platforms are breaking the law by accepting US clients
  • There is currently no Regulation for Binary Options in the United States of America
  • Banc De Binary was never located in the Trump Tower as was only a virtual office

These ‘law breakers’  did not go untouched. Banc De Binary got fined a few million USD$ for accepting and allowing US traders (and claiming to be located in the US) to trade on their platform after they received their regulation. I can safely say without any doubt that a broker platform that is regulated and checked by any Regulated Entity like Cysec, will stick to the rules or face massive fines that can put them out of business!


Rather be safe than sorry! Stick to a fully regulated company authorized to provide trading facilities to clients. We are proud to be supporting this cause by working with TopOption, providing our clients with a safe and secure trading environment! Happy 2014 and best of luck with your trading this year.

Already Have A Broker? – Are You A US Trader?  Join The Education!

If you have any questions about the FREE Binary Options Education when you sign up with TopOption, or need more information about the Skype Room you can contact Allen Henn. He is a current member and the DTFL Binary Options host.

Skype: allen.henn
Phone: +27 836564432

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1 Comment

  1. Allen Henn
    Allen Henn January 13, 10:21

    Hi @Greg Markovsky

    1. It is 100% true and not saying there is anything wrong with this but the brokers hide that as 99% of people will rather not deal with them then and rather deal with an EU located broker. To me personally I do not care where they are but the majority of traders’ do.

    2. Nadex is not a Binary Options broker. They provide Options and its completely different then simply doing a call or a put.

    3. Yes correct, TopOption does thus not accept US clients.

    4. The client/trader makes the choice if it will be gambling or trading, based on how he goes about it. Will they follow the BS methods we see on YouTube or will they educate themselves and follow a strategy. Yes you do trade against the broker just like DD FX broker. Point is there are few profitable traders in Binaries so the 5% that actually do it the right way and profit are not really effected by anything negative regarding broker conflict (With Regulated Brokers).

    Reply to this comment

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