Regulated Binary Options BrokersBinary Options Trading is a new investment vehicle which started out in late 2008 and is becoming highly popular among global traders. There are many binary options brokers who provide access to trading binary options but not all of them are regulated by a financial governmental entity such as the Australian Securities and Investments Commission (ASIC) the Canadian Securities Administrators (CSA) or any other entity for that matter.
There are many binary options brokers which are not regulated. Such binary options brokers would get the trade quotes from a data provider before relaying them to the trader. This creates allowance for the binary options broker to interfere with the quotes. The binary options broker can alter quotes to his favour. In addition, they can delay the quote until a favourable market condition is reached. This would eventually lower the profitability of any trader.
Why shouldn't I trade with an UN-regulated binary options broker ?
Advantages of operating with a regulated binary options broker
When choosing a binary options broker firm, it would be wise to go with a regulated binary options broker. There are many Advantages to operating with a regulated binary options broker.
As you may know there is a regulatory requirement for every firm who engages the financial markets to keep off scammers and illegal operators. Although it is a requirement for all the brokers, some brokers are operating in the market without being registered with any regulatory authority. In this case, the trader is at a great risk of losing his entire deposit. In addition, there is no protection in place to protect traders’ interests.
When you operate with a regulated binary options broker you enjoy from a low risk exposure due to the intensive regulations which applies to broker. There are still chances of beeing involving in an unethical, fraudulent or even in illegal activities, but those chances are reduced to a minimum.
Trading with an UN-regulated binary options broker might prove as more expensive, hence less profitable simply because the trader is subjected to high levels of fees and commissions which applies to the UN-regulated broker.
The best option for you would be to trade with a regulated binary options broker. That way you would enjoy many of the benefits mentioned above while marginally reducing the risks associated to trading with UN-regulated binary options brokers. You would know that your funds are secured and that you can withdraw your money and profits at any time. You would have a peace of mind in regarding to the brokers' intentions and reliability.