Don’t Be Fooled: Always Trade with a Regulated Binary Options Broker
Binary options’ trading has experienced a surge in popularity over the past few years due to its relative simplicity and accessibility when compared to traditional trading and investing. This is great for binary options traders as there is a wealth of information about binary trading online and a ton of profitable signal services. The downside though is that lots of scam brokers and unscrupulous companies have popped up seeking to take advantage of the industries relative lack of regulation. In this quick piece we will discuss how you can avoid falling victim to these scammers by only trading with a trusted, regulated binary options broker.
Why is regulation so important?
Regulation is designed to protect the consumer: regulated binary options brokers have to adhere to strict codes of ethics and operate their business in line with local regulations. If you feel you have been treated unfairly with a regulated binary options broker, you can take up your complaint with the local regulator who will attempt to resolve the issue in a way which is acceptable to both you and the broker. On the other hand, if you are treated unfairly by an unregulated binary options broker, there is literally nothing you can do. You have zero avenues for recourse.
So what can go wrong trading with an unregulated broker?
Almost anything. Unregulated brokers can literally do whatever they like. They could manipulate their price feeds, cancel your profitable trades or even refuse to allow you to withdraw your profits. Lots of binary options brokers have been known to just disappear into thin air, taking all their clients money with them. Imagine trading profitably for a whole year, making tens of thousands of dollars, only to find your broker’s website has disappeared the day after you requested a withdrawal. Don’t waste your time with unregulated brokers; it really isn’t worth the risk.
A flashy website doesn’t necessarily mean a trustworthy broker
Don’t just assume the broker you are thinking of trading with is trustworthy because they have a flashy website. Web design is a lot cheaper than it used to be and almost anyone with a modest budget can set up a nice website. Don’t be fooled by the bells and whistles. Of course trustworthy brokers will also have professional websites, but your chief concern should be whether or not the broker is regulated.
Avoid binary scam hotspots
Some countries are notorious for housing scam binary options outfits. What’s surprising is some of these nations actually have solid financial regulatory frameworks for their equity, forex and bond markets, but let binary options ‘brokers’ do whatever they like. Israel for example is a first world nation with a strong regulatory framework for it’s traditional financial markets, but it is also the number one location for setting up a binary options scam shop. Avoid binary options brokers and signal services based in Israel at all costs.
You should also avoid brokers located in nations that are prone to corruption or are known tax havens. If your binary options broker is trustworthy, why is there head office located in the Cayman Islands?
So which jurisdictions are reputable and trustworthy?
Rather than trying to work out which binary options brokers are untrustworthy and which jurisdictions have lax regulations, why not just trade with a broker located in a nation renowned for its regulatory framework? Australia, the UK and US are all renowned for investor focussed regulation and strict corporate governance laws. When trading with a broker based in one of these nations, you can be sure your funds are safe and secure, and that you have adequate avenue of recourse in the rare event that something does go wrong.
Why take the risk of being left out to dry by a broker in Timbuktu? It’s just not worth it.
OriginOption: Australian Regulated Binary Options Broker
OriginOption is a binary options broker located in Australia and regulated by the Australian Securities and Exchange Commission. When you make a deposit with OriginOption, when you place a trade with OriginOption, you can sleep easy at night knowing your money is in safe hands and your winnings will be paid out. The team behind OriginOption have decades of experience in the financial markets and we understand what our clients want from their binary options broker: transparency, security and speed. Our client’s funds are held in segregated accounts with the AAA rated National Australia Bank and we have some of the highest payouts in the industry. Open a live account with Originoption today, or hone your skills on one of our free demo accounts.
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