Binary Options Regulation
When it comes to investing your hard earned capital you need to be sure that you can trust the institution that you are trading with. Regulated binary options brokers offer some security to your trading as each broker has to be regulated with the local financial regulator in its registered area of operation.
Following a number of early concerns about binary options, the industry has made great steps in terms of regulation in recent years. Nowadays brokers are more likely to be regulated than not.
This is important for traders, as after all, you are effectively handing your money over to the company. At the very minimum you need to have some guarantee about the financial stability on these companies.
What Does Regulation Provide?
There are a number of reasons why regulation is necessary and why it is important that you trade with a binary options broker that is regulated. Top reasons:
To ensure brokers comply with the existing operational laws and regulations
To ensure brokers are sufficiently capitalised to serve their clients
To ensure full disclose of terms and trading conditions
To ensure that clients have access to a fair conflict resolution procedure and escalation
Binary Options Regulators By Country
You can check on the regulatory status of a broker by visiting the regulators website. A list of official binary options regulators is given below by country.
Germany – Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin) – http:// bafin. de/EN/
Italy – Commissione Nazionale per le Società e la Borsa (CONSOB) – http:// consob. it/mainen/index. html