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Regulated vs. unregulated binary options brokers by Fabiola Groshan





Regulated vs. unregulated binary options brokers by
Article Posted: 09/23/2016
Article Views: 72
Articles Written: 9448
Word Count: 534
Article Votes: 0
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Regulated vs. unregulated binary options brokers


 
Business
Choosing the right binary options broker is the first and most important thing that you should do before starting a career as a trader. Of course, there are plenty of other aspects to keep in mind, but this one is essential, because picking the wrong provider can end with you losing your money, no matter how experienced and savvy you may be. When deciding on the right broker, you should keep in mind a few things: years of activity on the market, support options, bonuses and so on. But there is also the matter of registration. You can find both regulated and unregulated brokers online and, although their promises and ads might look similar, they are in fact completely different.

First of all, the activity of binary options trading is not regulated everywhere. For instance, in countries that are part of the EU, brokers need to be regulated by CySEC, which is the main authority in this field. For a broker, being regulated means that the platform must comply with the quality standards set by CySEC and that they need to be very professional. If a platform is a scam, CySEC won’t allow it to exist. Also, when giving their approval, they check things such as website functionality and payment times. Basically, by registering with a regulated broker, you won’t have to worry that the money you earned fairy will not arrive in your bank amount within the promised interval.

Secondly, regulated brokers are considered one of the safest ways to check whether or not a binary options trader is reliable or not. But, if that is true, does that mean that every unregulated platform is a scam? Why do they exist then? Well, if a platform is established in country outside the EU, it doesn’t have to seek CySEC regulation. There are several good, legit and unregulated binary options brokers that don’t put your money at risk. However, with unregulated brokers, the risk of scams is much higher. If you are not careful, you can entrust your money to a broker that doesn’t pay bonuses, doesn’t offer a pleasant trading experience or doesn’t send you your earnings at all!

In general, traders are advised to avoid unregulated platforms. Even though there are some reliable unregulated options out there, you can never be 100% sure that each and every trader who joins is respected. Scams can be spotted relatively quickly, because there are always reliable websites such as Coe.ba, which post reviews and update scam lists. However, new scam sites take a while to be discovered, so you shouldn’t be the first to trust an unregulated platform that doesn’t have any lengthy and thorough reviews. As it is the case with everything else, if something seems too good to be true, it probably is. So, if you get an email or come across an ad from an unregulated binary options broker talking about incredible bonuses, you might want to stay away from it. Hidden clauses could be hidden in the fine print or perhaps it could a complete scam. Stick to regulated brokers, because they are the most trustworthy.

To learn more about regulated and unregulated brokers, please visit Coe.ba!

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