This is why we recommend using one of the brokers listed above in order to make sure you stay with one of the leading names in the industry (for more reputable brokers you can visit Binary-Options-Brokers).- You can always try more platforms before sticking with the one you like most. If you are serious about investing with digital options, one of the best ways to find the best broker for you is to open accounts at more platforms and make some trades with each of them. Your own experience with the broker cannot be replaced by anything. Testing their platforms with real trades, making a deposit and a withdrawal or contacting the customer support will help you make a better idea about the broker. Testing a few brokers will familiarize you better with the trading environment, and you will end up trading the bigger amounts with the broker you feel most comfortable with.- Check the minimum requirements in terms of deposits and trade size if you are on a low budget, or the maximum trades allowed if you are a high roller. If you want to deposit using special methods like Moneybookers, Western Union, Alertpay, Liberty Reserve or Money Gram, you should look for the brokers who accept those methods. On the other side, if you plan to deposit by bank transfer or using a credit card you dont have to worry about accessibility, because all brokers will accept those methods.Regulated brokers cannot accept traders from the United States because the US does not have legislation in place to regulate binaries. This is why the jurisdictions who decided to regulate binary options have excluded US customers as a precaution. This means that brokers who accept US customers are unregulated. This doesnt mean they are not good brokers.Regulated brokers will usually have additional requirements from their traders, such as verification of identity and address. They may ask for documents in order to make sure the person who signs up is actually the owner of the account. Such requirements are for the protection of the clients and are imposed by the regulator authority. You will find similar requirements from all regulated brokers, including forex, CFD or stock brokers.Some people consider regulation to offer an additional layer of protection for traders because brokers are required to keep client funds in segregated accounts and are forced to mantain minimum capital requirements in accordance with MIFID (Markets in Financial Instruments Directive 2004/39/EC) regulations in the European Union.As a general rule, we believe that older brokers with more experience and a good reputation obtained over the years will always be the best choice, regardless of regulation. However, most of the time you will notice that the brokers with the best reputation were the first to get regulated.Working with member brokers and traders worldwide. The Binary Option Brokers Association provides a facility for professional development, research and exchange of information among brokers and traders. All for the purpose of preserving the integrity of this new industry. TBOBA advises binary options brokers on client retention, marketing and industry best practices.The Binary Option Brokers Association is not involved in the regulation or licensing of binary option brokers. The licensing and regulation of brokers is mostly handled by the Cyprus Securities and Exchange Commission. As a member of the European Union, Cyprus licensed Investment Firms are covered under the EUs MiFID rules which allow these broker to operate in all EU countries. Certain countries have their own country specific rules and regulations for binary option brokers. Click here to see the list of financial regulatory agencies.The profit / loss potential in binary options follows the all or nothing principle. Meaning, traders can either lose all the money placed on the trade, or profit anywhere between 60 and 95 depending on the asset and time frame. The risk involved in this trade is known. Binary Options is an easy way to profit from predicting correctly if a currency pair, stock index, or commodities price will rise or fall.Many binary brokers do not have a license from an EU financial regulator. There are a few brokers that have received a license and we will show you how to verify the license. Traders in the United States will not find a licensed broker that accepts them. US Traders can look at the popular brokers catering to US residents here.The CySEC license is 5 digits with a forward slash in the middles. For example, 24Option is owned by CySEC licensed Rodeler Limited whose license number is 207/13. Most licensed brokers will prominently display their license number on their website like on 24Option.Below are the binary brokers who are licensed by CySEC. It is important for traders to always verify that the binary brokers license is still active. Traders can visit CySEC at:cysec.gov.cy/ and do a quick search for the license number of the broker they wish to trade with.The regulator of financial institutions and binary brokers is usually EU Member Cyprus. Their securities and exchange commission is called CySEC. The CySEC license allows binary brokers to accept traders from countries that are members of the EU and countries that recognize CySEC as a legitimate regulator of binary option brokers.Binary options are a simple way to trade price fluctuations in multiple global markets, but a trader needs to understand the risks and rewards of these often-misunderstood instruments. Binary options are different from traditional options. If traded, one will find these options have different payouts, fees and risks, not to mention an entirely different liquidity structure and investment process. (For related reading, see: A Guide To Trading Binary Options In The U.S.)Binary options traded outside the U.S. are also typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative, but only if the trader fully understands the two potential outcomes of these exotic options. In June 2013, the U.S. Securities and Exchange Commission warned investors about the potential risks of investing in binary options and charged a Cyprus-based company with selling them illegally to U.S. investors.Binary options are classed as exotic options, yet binaries are extremely simple to use and understand functionally.
