Binary Options Guide review receives many messages from readers, regarding the issue of regulated brokers vs unregulated brokers. We decided to dedicate this article in order to clear the matter once and for all.
Those who wish to trade binary options are often stumbled upon a tern called a regulated broker and an unregulated broker . The difference between the two is not clear to even expert binary traders.
One thing is for sure, regulated broker is a good thing, it means that the binary broker received a licence from a regulations board and the broker follows the strict set of rules imposed upon them by the regulatory board.
These set of rules are designed to protect the binary options investor. It also means that the investor can turn to that authority if he thinks that the binary broker has failed to comply with any of those rules.
Binary Options was included into the set of financial instruments during 2012 by the EU commissions regulatory board, named CySEC. The intention of that board was to make the binary options trade more transparent and a safer tool for investors.
The most important benefit of a regulated binary broker is the fact that the broker would with no doubt be able to pay all its investors whether a trader was successful with his traders and want to cash out, or weather he just want to withdraw his money or some of it from his account, the commissions board makes sure that this is the case, just like a regulated bank.
Another major benefit is the fact that a trader can be 100% sure that the price quote of assets is accurate, and no one is tampering with the charts.
On the other hand with a regulated broker, there is some bureaucracy a trader must go through. A trader must send identification documents to the regulated broker, before he or she can start trading, sending funds is not enough. The traders personal information is safe and secure, under the CySEC security guidelines that are often checked.
If trading with a regulated Binary Option platform is of interest you then check out 24Option. They are a fully regulated broker and offer a fantastic trading experience.
There are sometimes geographical reasons why a trader cannot use a regulated platform. If this applies to you all is not lost. As regulated companies have raised the industry bar other trading platforms have also had to increase their standards as well. These brokers are well aware that if they want to continue attracting clients then they must look after the ones they already have, and compete on service with their regulated competition.
Before trading with an unregulated broker, make sure you do your homework first some are truly awful. One that I have traded with in the past, that offered an exemplary service as well as a quick withdrawal procedure was Porter Finance so check them out.
Another binary options broker called Tradorex, has just been reviewed by us. Unlike many other brokers, they accept U.S traders. They are also regulated, so you are welcome to read our review.
As usual if you require any additional information you may visit my binary options guide that deals with the types of binary options. And if you have any question concerning the content written here or any place else on the site, please feel free to leave your message.