Binary Options Trading is primarily carried out on an online platform. Like other institutions that deal with investments, Binary Options Brokers are regulated by select bodies that have been formed to safeguard the interests of investors. By virtue of being done online, the regulations are more intensive due to increasing rates of broker malpractices.
Binary Options regulators help to ensure that investments are kept safe at all times, and also, that the CFD / Forexs broker sites maintain high levels of integrity. They have helped to ease withdrawal nightmares that many traders have faced in the past. Cases dealing with locked up funds have also been reduced, and traders are able to peacefully enjoy their returns. Binary options trading scams have also been reduced, particularly for regulated brokers who adhere to high standards.
To guarantee the safety of customer funds, traders are encouraged to register with a regulated broker. The funds are then deposited into an account where they are safe, and a trader can access them for use on the brokers site. A regulated broker is an honest and a transparent broker.
The major CFD / Forexs regulators worldwide are as follows: –
- Commodity Futures Trading Commission
US CFTC is mainly mandated with the regulation of the futures market in the US, which includes CFD / Forexs trading as well as Forex trading. Its main task is to ensure that traders are safe from unscrupulous deals and scam brokers. It promotes transparency and honesty on the part of brokers for the safety of traders worldwide. To date, the only CFD / Forexs broker regulated by this body is NADEX.
2. Cyprus Securities and Exchange Commission
CySEC is a body that regulates the Eurozone CFD / Forexs market. This body has successfully been able to detect and stop illegal activities that may occur through CFD / Forexs trading. These activities include money laundering, fraud and other criminal activities.
CySEC also ensures that trading platforms within Europe provide accurate information to traders especially when they are advertising their services, when conducting promotions and also when providing financial reports. The body ensures that brokerage firms are genuine in their dealings with customers and that all their transactions are being done on time. If you are trading in a platform regulated by CySEC, you can be sure that your funds are safe.
3. Financial Service Authority
FSA is the body that polices and regulates CFD / Forexs trading deals in the UK, together with other regulatory bodies. This is a body that ensures that trading platforms are adhering to the trading rules and regulations at all times and that traders’ funds are safe from such problems as bankruptcy and other financial calamities that could affect them.
4. Australian Securities and Investment Commission
This is the body that regulates the CFD / Forexs industry in Australia. The body licenses trading platforms to ensure that they are trading legally, fairly and honestly so as to protect the interests of different traders from across the globe. Transparency in CFD / Forexs trading is enhanced by ASIC and this ensures that traders are comfortable when dealing with different regulated trading platforms. This is the body that collects financial information pertaining to different trading platforms and makes it available to interested members of public on time. The body ensures that it provides quality information pertaining to all the trading platforms it regulates for the benefit of traders.
5.Dubai International Financial Center
Binary options trading operations in UAE are policed and regulated by DIFC. This is the body that confirms traders in Dubai are fully protected from scam brokers and that all their interests are highly considered during the trade. The body ensures that information about different trading platforms is made available.
6. Federal Financial Markets Service
This is a Russian body which is mandated with the regulation of financial markets in Russia. Russia’s CFD / Forexs industry is growing at tremendous speed and so, close regulation and monitoring is required just to ensure that traders are safeguarded and that the trading platforms are adhering to the set rules and regulations.
When you visit a broker site, look for evidence that one of these regulatory bodies is regulating the site. This is a guarantee that the site is trustworthy.