Are the Binary Opton companies Regulated? Are they legal?
The answer to this question is both Yes and No.These companies are either not registered with legal authorities or if they are, it is in small countries that really you cannot extend the other countries to them. I have seen several of them the at the best are registered and regulated by Cyprus authorities or in a small island that belongs to Britain or French territory. But at any shape they have not right to be active and work in USA.
Binary Option Trading is illegal in USA by law
As mentioned they are mostly regulated at Cyprus by CySEC and below is what these companies claim for :
The Cyprus Securities and Exchange Commission is the most widely recognized regulator of binary option brokers. As many brokers are regulated in Cyprus by CySEC this allows them to operate in all EU member countries. ASIC in Australia is now regulating binary option brokers for Australian
The above phrases are from the website of a Binary option company and I can tell you that what they express for regulating in EU and Australia is not correct. I mean that if you what to file a complain against them no government authority in any of above countries will accept and support you. Even CySEC itself when it comes to a complain against any of these companies they never support you. I have a real experience with this case that will share you in my future posts.
If these Binary Option companies claim that are regulated in EU and anywhere else this is because they want to convince you that their business within those countries is legal and you can count on the legal support if you want to lodge a complain against them in a court or a legal authority.
The interesting point is that their brokers are mostly located in Britain. Check the country code of the number that the broker calls you by it and even they have an office address in UK or Switzerland but the local law is not applicable to them, so please be careful that do not trust them because what they say for being regulated by law.
ach country has its own financial regulator who is responsible for regulating binary option brokers, stock brokers, Forex dealers, and commodity exchanges. Some countries like those who are members of the European Union, accept brokers who are registered with one countries regulatory agency. For example, the arrangement EU countries have with CySEC, the regulator of binary option brokers in Cyprus.
Binary Brokers may advertise that they are regulated by a specific countries regulatory agency, but it is the responsibility of the trader / investor to double check that;
1. The broker is actually registered with the regulator.
2. The brokers license is still valid.
For local regulators of each country please check the below websites:
Australia – Australian Securities and Investments Commission – http://www.asic.gov.au/
Canada – Investment Industry Regulatory Organization of Canada (IIROC) – http://www.iiroc.ca/
Cyprus – Cyprus Securities and Exchange Commission – http://www.cysec.gov.cy/
Czech Republic – Czech National Bank (CNB) – http://www.cnb.cz/en/
Denmark – Finanstilsynet (The Danish FSA) – http://www.finanstilsynet.dk/da/
Estonia – MTR Majandus – https://mtr.mkm.ee/
France – Banque de France (BDF) – http://www.acpr.banque-france.fr/
Germany – Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin) – http://www.bafin.de/EN/
Hungary – Pénzügyi Szervezetek Állami Felügyelete (PSZÁF) – http://www.mnb.hu/
Italy – Commissione Nazionale per le Società e la Borsa (CONSOB) – http://www.consob.it/
Japan – Financial Services Agency – http://www.fsa.go.jp/en/
Malaysia – Securities Commission of Malaysia – http://www.sc.com.my
Netherlands – Netherlands Authority for the Financial Markets (AFM) – http://www.afm.nl/
Russia – Financial Market Relations Regulation Center (FMRCC) – http://fmrrc.ru/en
Singapore – Monetary Authority of Singapore – http://www.mas.gov.sg/
Spain – Comisión Nacional del Mercado de Valores (CNMV) – http://www.cnmv.es/
Slovakia – National Bank of Slovakia (NBS) – http://www.nbs.sk/
South Africa – Financial Services Board (FSB) – http://www.fsb.co.za/
Sweden – Finansinspektionen (FI) – http://www.fi.se/
United Kingdom – Financial Conduct Authority (FCA) – http://www.fsa.gov.uk
United States – U.S. Commodity Futures Trading Commission – http://www.cftc.gov
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