So the question leads them the moment when they have to check out who is certified and who’s got a license to back up his reputation.
More and more traders find out that binary option trading is becoming a very lucrative business and with the plenty of brokers offering binaries it is difficult for a trader to decide which one to trust.
CySEC-regulated means EU-regulated
Being a member of the European Union, Cyprus is obliged to follow the general EU laws and regulations in their legislation. So licenses issued by CySEC fully comply with the European financial laws.
That’s why more and more binary option brokers are making efforts to get licensed. But because of the fact, that binary options is quite a new product on the financial market, the regulation authorities that give such licenses are not much. In fact countries with legislations that recognize and regulate binaries are not much.
Cyprus is the first country to implement such online investing laws recognizing binary options and regulating them through the Cyprus Security and Exchanges Commission (CySEC).
Other EU countries providing financial regulation of binaries
Other EU countries providing financial regulation of binaries are the United Kingdom with the Financial Policy Committee (FPC) and the Financial Conduct Authority (FCA) as regulation authorities and Malta with the Malta Financial Services Authority (MFSA) in charge.
Italy, France and Germany are taking steps in that way. So no matter where you live it is save to register at a broker who has a license issued by the regulatory financial agencies of a country where the legislation recognizes the online binary trading as a legal way of investment i.e. Cyprus, UK and Malta.
All other countries do not consider binary options trading as illegal but also they do not offer regulation and adequate laws for the new kind of financial investment. Introducing binaries to countries’ legislation and the implementation of laws that regulate the online financial markets will only result in a feeling of security around investors, which will only make them invest more in their business and in the binary market as well.
Cyprus grasping the opportunity
And of course all binary brokers pay huge amounts to the country where they’re registered in the form of taxes and if there is a proper regulation by the government’s regulatory agencies, it comes as a legal income and an opportunity for a new financial market to be developed. Cyprus is the first country to seize that opportunity.
The country is also considered as tax heaven for online businesses as a whole. That’s why more and more binary option companies settle their businesses there. The combination of the fact that Cyprus is a member of the European Union, that it has low taxation for online businesses and the fast bureaucracy issuing the licenses, makes it the perfect spot for binary options brokers to settle.
Get licensed of get blacklisted
Searching the internet one certainly comes across a number of fraud reports from people who trusted a broker who somehow deceived them and turned out to be a binary options scam. All that reports forced the governments of some countries to take action and recently there were some campaigns held by the financial regulators of Italy, France and the US which forced the ISP providers to block the IPs of binary online trading platforms or issued blacklists warning of unlicensed and unreliable binary options brokers. That created a greater concern among binary brokers about their getting certified and regulated.