Tag Archives: binary options regulation

How Do Scam Brokers Operate and How to Identify Them

The binary options industry is changing rapidly and becoming more regulated and professional. However, there are still some brokers who manage to slip through the cracks and operate a scam business designed to be short-term profit maker based on defrauding traders and stealing their money. How To Identify These Brokers: Seek Regulated Brokers: An officially accredited broker would risk losing their license. An official CySec license for example costs around 200,000 Euros, and also includes various ongoing fees. Too many complaints will get the broker sanctioned, and ultimately they will have their license revoked without the ability to get their …

Binary Options Trading Regulation: Is it Legal?

Before we start this discussion, I think it’s crucial to differentiate between binary options trading that is illegal as opposed to unregulated. To be specific, if you open a real money trading account with a FINRA-licensed broker you pretty much know what you are getting. The traditional brokers or exchanges make their money based on the margins or percentages charged according to the volumes of trades executed. Contrarily, the CYSEC-licensed brokers operate differently. In their business model the trading algorithm ignores the volume of trades in this context. Of course they want you to trade more, but only in the  sense …