Regulated Binary Options Brokers
There are many reasons that may trigger a trader’s decision to go with a certain binary option broker – number of binary options trading assets, good customer support, appealing trading platform, binary options demo account and many others. However, what everyone of them is searching for is security of their funds.
All binary traders want to be sure that the money in their trading account will be safe and that their trades and prices shown won’t be manipulated. In all honesty, there are a number of shady online brokers out there who may try to scam you and can make trading binary options an awful experience. Therefore it is advisable to pay more attention and even sign up with binary options brokers regulated by a financial institution, such as CySEC. For other Binary Options Regulating Authorities by country – See Here!
List of Regulated Binary Brokers:
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An important note to make is that once a binary options broker becomes CySEC regulated, they cannot accept clients from the USA. Therefore we’ve made a list below of the top safe US Binary Brokers.
US Friendly Binary Brokers:
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For those of you out there who still are not familiar with the concept, CySEC is short for the Cyprus Securities and Exchange Commission. In short it is the financial regulatory body of the Republic of Cyprus and it is authorized to provide regulated licenses to the best binary options brokers. Trading with CySEC regulated brokers means more security for your investments.
How to Choose a Binary Options Broker – See Here!
The Commision was created in 2001 as a public corporate body for regulation, but it was not so popular in the financial world until 2004 when Cyprus joined the European Union. This is when the country could open its doors for foreign finances.
In its essence CySEC “is the independent public supervisory Authority responsible for the supervision and regulation of the investment services market and transactions in transferable securities carried out in the Republic of Cyprus.” It is governed by the Structure, Responsibilities, Powers and Organizations Laws of Cyprus.
The entire supervisory authority, however, was not entirely created for philanthropic purposes. The second reason behind the implementation of the regulatory body was to make the country more appealing to foreign investors, binary option and trading brokers.
After Cyprus joined the European Union in 2004 CySEC gave all companies who were registered there access to all European markets. This, almost instantaneously, made the destination much more attractive to foreign companies which started registering and moving their Head Quarters there. Also, the taxes were much lower compared to those in Western European countries.
In May 2012, after a tax increase in 2008, CySEC made a notable change in their policy by listing binary options broker as financial instruments. Thus, they became the first regulator in the world to do so. This also explains why there are numerous binary options brokers who are based there.
Can CySEC act on Non-Regulated Binary Brokers? – See Here!
Whenever you see that a binary options broker is based in Cyprus, you need to take it as a good sign, because, as previously mentioned, they are obligated to be CySEC regulated when registered in that country. CySEC, on the other hand, as an institution has the following obligations:
- “Supervision and control of all operations and transactions carried out in the Stock Exchange.”
- “Supervision and control of the issuers of securities listed on the Stock Exchange, the licensed investment services companies as well as the collective investment schemes.”
- “To carry out inspections over companies, the securities of which are listed on the Stock Exchange, over brokers and brokerage firms, investment consultants, and mutual fund management companies.”
- “Requesting and collecting information necessary for the exercise of its responsibilities, to demand in writing the provision of information from all natural or legal individuals or organizations that are considered to be in a position to provide such information.”
- “To grant operation licenses to investment firms, including investment consultants, brokerage firms, and brokers.”
- “Recalling these operation licenses for special reasons, as it is more specifically determined in Regulations that are published in accordance with the Law of Establishment of the Cyprus Securities and Exchange Commission.”
- “Imposing administrative sanctions and disciplinary penalties to brokers, brokerage firms, investment consultants as well as to in any other legal or natural person whom fall under the provisions of the Stock Market legislation.”
If these regulations are followed is supervised by a vast team of professionals, headed by a five member board, including the Governor of the Central Bank of Cyprus.