As things currently stand, there is no exclusive, global regulatory system for binary options, Forex and other trading opportunities that have come to prominence relatively recently. As the investment opportunities grow in popularity and more individuals turn to trading, however, the need for regulation has increased, especially in the views of the traders themselves.
With this in mind, a number of bodies have been set up to regulate service providers in the sector, often covering certain geographic regions. These bodies were created not only to protect traders but also to encourage brokers and others involved in the trading process to adopt certain best practice techniques and, more importantly, to adhere to a certain code of conduct.
Regulation continues to not be mandatory in many areas and while several reputable brokers often opt out of regulation, such as when looking to increase the number of available assets, it can always be a good idea to work with a reputable brand that does hold some kind of regulated status. This is even more significant in some markets, especially where regulation is required such as in the US. There, brokers that accept US traders are obliged to accept regulation and put in place various measures that allow them to legally accept applications from traders and investors within the country. We have more information pertaining to trading in the US below.
With all of this in mind, our broker reviews will mention any instances where investors of certain nationalities cannot make full use of certain services. The distinctions here are almost always based on geography and most brokers, regulated or otherwise, will make it clear when they only accept traders from certain countries. We’ve also taken things a step further and have recommended brokers for investors from various regions, using our knowledge and experience with them to ascertain firstly that they are reputable, safe and functional before splitting them up based on where a trader is based. This ensures that our readers receive all of the benefits of a top rated brokerage, with the added benefits of localisation.
US Binary Options Brokers
As noted, US based traders face some of the strictest regulation in the world. Activities in the country are overseen both by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) and both work to ensure the safety of US traders and the overall integrity of investment systems. While there is nothing unlawful about any broker accepting US based traders, any broker that does so automatically accepts that they may be liable for prosecution, fines and penalties in the event of a dispute with a trader.
This has led to a minor split between brokers that accept US traders. Some are physically based in the US and accept regulation from either the CFTC or the NFA. Others are based offshore and while they are willing to accept US players, they are not necessarily regulated as they are located outside the jurisdiction of either body.
In an effort to make the process of choosing a broker as easy as possible, we have only featured brokers for US traders that are known to be safe and reliable and while they may fall into either of the two categories, they are widely regarded as being some of the very best trading platforms in the world.
European Binary Options Brokers
Unlike their US based counterparts, European traders benefit from access to one of the most open markets in the world. The continent boasts some of the biggest names in trading regulation, with the Cyprus Securities and Exchange Commission (CySEC) being one of the most reputable of all. It is widely regarded within the industry as being the premier regulatory body in all of options trading and utilises strict procedures to serve almost as a mark of quality and seal of approval for any brokerage. The brokers that they approve may only accept traders from within Europe, ensuring that the body’s area of jurisdiction covers any potential investor.
As in the US, European traders can also access offshore trading platforms which, while not regulated in the same way, are free of some of the restrictions that could potentially be placed on them by any regulatory body. Some of the best brokerages in the industry are not officially regulated and so it is best to make a decision based on a variety of contributing factors. We have analysed what all of our reviewed brokers have to offer and you’ll be able to find the most reputable, trusted and functional of all in the whole of Europe as part of our recommendations and reviews throughout the site.