We have recently received complaints and read many negative reviews on the internet about regulated binary options brokers using indecent practice towards traders. Although some binary brokers may be regulated, we do not recommend opening a trading account with ANY broker, be it a regulated broker or a non regulated broker, as THEY ALL seem to be unethical and non-trustworthy, even the regulated ones! If you have been scammed by such a company you can check out our RECOVER FUNDS FROM BINARY SCAMS section.

Also, instead of trading binaries which are mostly scams, you can trade with a trustworthy and popular FOREX broker such as STR Capital.

Are Binary Options Platforms Regulated?

A binary options platform is the specific technology and program that a trading service is run on. There are a few different types of trading platforms available for brokers to choose from. Are all these platforms regulated? With the regulation of binary options brokers, many assume that it is not necessary to regulate the platforms but that is not necessarily true. While there are far more brokers than there are platforms, platforms are regulated separate and apart from brokers. However, the regulators that oversee and monitor brokers, are different from those that oversee and monitor trading platforms. Just as with brokers, regulation of trading platforms is not mandatory.

One of the few regulated platforms currently offered is the TechFinancials platform. TechFinancials offers its own proprietary technology that allows for the highest level of accuracy in options pricing. Brokers who choose to use the TechFinancials platform have the option of obtaining licensing, payment processing, jurisdiction compliance, liquidity and KYC features through TechFinancials. This platform complies with all the regulatory requirements of regulators such as ESMA, CFTC and JFSA. TechFinancials is the first and only binary options technology provider to be listed on the London Stock Exchange (AIM). Some other trading platforms include SpotOption, Tradologic, Markets Pulse and TradeSmarter.

Even if a platform is regulated, it does not necessarily follow that all the brokers that use that platform are licensed (or regulated). The trading platform providers have the discretion to decide to offer services to both licensed and unlicensed brokers. Because of this, there is sometimes some confusion about which brokers are regulated or licensed and which are just simply using a regulated or licensed trading platform. In any case, there is some level of protection offered to the trader once the platform or the broker itself is licensed. However, greater protection is offered when both the broker and the platform that they use are regulated.

Benefits of Regulation

Regulation offers some benefits similar to the benefits that licensed brokers receive. The biggest benefit is that brokers and by extension, traders, have greater levels of confidence when using platforms that are regulated. Since regulated platforms usually tend to be preferred by brokers due to the fact that traders feel more confident using them, it means that regulated platforms receive more business. There is therefore a competitive advantage to be gained from regulation.

Many binary options trading brokers offer their services through the internet. The internet itself lends itself to lots of abuse and is vulnerable to scamming practices. This is why regulation of binary trading platforms became desirous. Due to an upsurge in the number of complaints made by traders who lost money through these unregulated brokers and unregulated platforms, various entities found it necessary to offer regulatory services to protect traders.

In some cases, unregulated platforms were providing highly inaccurate or misleading information which resulted in traders suffering significant losses. In order to stem the practice and to offer traders the opportunity to trade more securely, the practice of binary options platform regulation became available. This regulation is especially beneficial to traders who trade via the internet and who don’t necessarily have any interaction with a personal broker.

In conclusion, not all binary options platforms are regulated and the practice is not mandatory. Also, even if a platform is regulated, that platform may be used by both licensed and unlicensed options brokers. The onus is therefore on the trader, to ascertain whether both the broker and the platform are regulated or licensed or not. Regulation offers a greater level of security to both brokers and traders.