Top 3 Regulated Binary Options Brokers
Binary options are pretty specific trading instruments: they are very profitable but inherently risky, so it is extremely important that you understand how they work before actually entering the market. But the most crucial thing about trading these options is finding a reliable and well-regulated broker: after all, it doesn’t matter how much you make in profits if your funds are at risk. In this article, we provide a brief overview of the top 5 most reputable and heavily regulated brokers offering binary options.
About binary options
Binary options are derivative financial instruments that have their payouts tied to the price of a certain asset. They work like this: you make a prediction about whether the price will reach a specific amount and wait for the outcome. There are just two outcomes, and that’s why these options are called binary. If you are right, you earn a reward. If you are wrong, you lose your money. Such instruments are very risky, and you should definitely lower these risks by choosing the most reliable broker you can find.
Binary trading regulations
Many countries consider binary options too risky and complex to be available to common traders, and sometimes these instruments are completely prohibited. Even when you can trade them, there are all kinds of restrictions imposed on both brokers and traders. For example, the US government requires any binary options broker to comply with strict financial laws and get an official license. So you should definitely choose only the most regulated binary options brokers to avoid losing your money. We have arranged a list of the top 3 most reputable brokers officially licensed for binary trading.
IQ Option
Founded in 2013, IQ Option is one of the most well-known online platforms for binary trading. It has a license issued by CySEC, and the regulator closely monitors all of its operations. The broker features a wide variety of trading instruments, including many different CFDs.
Binary.com
One of the oldest binary trading brokers, Binary.com is known to be regulated by several authorities in different countries, so you can definitely trust it with your money. The broker is considered suitable for novice traders.
Nadex
Nadex is a US-based binary options broker licensed and regulated by the CFTC. It has a decent basic training program for beginners and user-friendly customer support, so it can also be recommended to beginners.