The Chicago Board Options Exchange (CBOE) offers them on the SampP (SPX) and CBOE Volatility Index (VIX), with Nadex also offering a range of forex, commodities, and stock indices markets.Non-exchange-traded binary options are also widely available through a number of trading platforms, with roughly 100 platforms in operation offering options on close to 200 underlying assets. However, both the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued a joint warning to American investors regarding unregulated option trading, so its always important to do your homework before you choose a broker and start trading.Options have been getting so much attention lately, its easy to think they just came out of nowhere. The concept has been around for a long time, however, with early over-the-counter transactions often involving simple on/off trades between market participants. It became much easier to trade options after the Chicago Board of Trade created the first structured options trading environment in 1971 by forming the Chicago Board Options Exchange (CBOE).Even after the creation of the CBOE, however, binary options were still the domain of elite traders, with major contracts available solely as over-the-counter transactions through licensed brokers. Changes to this structure finally took place in 2007, with the binary market growing around the world since this date. While they could be traded prior to 2007, they were extremely complicated and not open to the general public due to a minimum amount of regulated supervision.Digital Options Trading was defined properly and made legal in 2007 after the OCC (Option Clearing Corporation) passed a rule with the SEC (Securities Exchange commission) allowing binaries to be traded over the counter in major markets around the world. In May of 2007, the American Stock Exchange became the first international exchange to offer binary options publicly, with the CBOE following suit in June.While originally defined as digital options, the term binary slowly spread into mainstream use. Expanding uptake by brokers and the introduction of new and sophisticated platforms and tools has seen binary options grow in popularity since 2007. With greater market flexibility and a larger diversification of underlying assets, traders now have access to a range of contract types, strike prices, and expiry times. The simple Up/Down order has expanded into a full range of options based on trigger points, price ranges, contract times, and asset relationships.Binary Trading continues to expand within the investment industry, as new traders are attracted to the simple rules and easy implementation of digital trading. While the dangers of financial risk are just as large as ever, the possibility of increasing potential profit without having to study and master a wide range of trading subjects continues to attract new investors. However, like any form of financial investment, new traders are always advised to learn as much as possible before getting started.Binary options have become very popular, and with the popularity have come more brokers, some of which are less than reputable. One measure of safety against scams or swindling brokers is to trade through firms that are regulated. When a broker is regulated they are subject to oversight and scrutiny that non-regulated firms arent. That is not to say unregulated brokers are bad, or that all regulated brokers are saints, but for serious traders who dont want the added worry of their broker withholding funds or giving them the run-around, choosing a regulated broker is typically on the checklist of things to have.I ran a Google search and found a number of articles talking about many binary options brokers which were supposedly regulated. Very few of the brokers discussed turned out to actually be regulated, and the brokers themselves didnt even claim to be. It is possible some of these binary options brokers were regulated at one time, but opted not to be regulated since they cant accept US clients if regulated by the Cyprus Securities Exchange Commission (CySEC) or Financial Conduct Authority (FCA) of the UK. It is also possible that some of the binary options brokers on this list, while regulated at the time of writing, may not be in the future. Therefore, in each of the of the broker sections below, a link is included to the brokers regulator for verification purposes.Bancdebinary operates under Banc De Binary Ltd, which is regulated by CySec under license no. 188/13 (at the time of writing this firm is number 20 on the list). Upon searching for the company in the Financial Conduct Authority (FCA) register it is noted that the firm may be subject to limited regulation by the FCA as well.zoneoptions is operated under Rodeler Limited. Rodeler is regulated by CySecunder license no. 207/13(at the time of writing this is firm is number 107 on the list). ZoneOptions appears to have opted out of being regulated by CySec as they still accept US customers. Therefore, the parent company in this case is regulated, but ZoneOptions isnt.Ig/uk is a site owned by IG Markets Limited and IG Index Limited of England and Wales. Both these companies are authorized and regulated by the Financial Conduct Authority (FCA) the financial services regulator in UK. This excludes binary bets though, but IG Index Limited is still regulated for binary bets under the Gambling Commission, reference 2628.While many will consider Nadex a broker, it is technically an exchange. Just as in other financial markets there needs to be a buyer and seller in order for a trade to occur. Nadex binary options are quite different than traditional binary options offers by other brokers.A regulated binary options broker undergoes more scrutiny and shows their intent of sticking around for a while. It is advisable to trade with a regulated broker unfortunately there are many good unregulated brokers as well. This makes the decision somewhat more complex.
