Monday, 7 December 2015

Is Binary Options Trading Legal?

Binary options trading has quickly become one of the most popular types of trading nowadays. People are attracted to it because it is fast and easy and there are hundreds of brokers online who offer their services to the traders, so they can place their trades from the home computer or mobile phone. Binary options are rock stars of the trading industry, but many are concerned if binary options are legal in Europe or the USA, or in any other country of residence.
Trading binary options has been around for many years and is better known as digital options. Throughout history, the trading was done as an over the counter transaction and there was not much regulation. Today, more and more countries decide to legalize, but also to regulate it for public’s safety.

Transparency and Regulation

The only reason binary options can exist is due to the transparency of the prices and the fact it’s being regulated through regulatory bodies. If you are unsure about a broker just Google the “nameofbroker-review”. In each Broker Review traders will find where the broker is being regulated.
When trader withdraws funds from a binary options broker they will discover that broker usually asks for a copy of photo ID and place and proof of address. This way brokers respect regulatory framework, such as America’s Patriot Act from October 26, 2001, that is meant to prevent terrorism, fraud and regulate international transactions. By regulating binary brokers, regulatory bodies created a better trading environment and prevented many scams.  Some traders find this step in withdrawal process annoying but keep in mind that it is created for trader’s safety as well. Certain steps are making money laundering less possible, as well as the chances that someone else is using trader’s card. Additional steps and security checks are a sign of a serious broker.

Are Binary Options Legal in the EU?

Europeans shouldn’t be worried about legality of binary options, as they are legal in all countries of EU. European brokers are usually regulated by CySEC, that is considered main regulatory body for binary options in entire EU, but can get their license from another regulatory body such as AMF (France) or CONSOB (Italy). When a broker is regulated it means that it is obligated to act in accordance to the laws of the state they are regulated in. This means that it is completely legal to trade binary options in all countries that are part of European Union, and traders should not be afraid that they will get prosecuted. We always advise trading with registered brokers from our top brokers list.