The Cyprus Securities and Exchange Commission is the main regulator of binary option brokers. Based in Cyprus, which is a member of the EU (European Union), CySEC is by far the largest government regulatory agency when it comes to this area of financial markets.
Although there are currently over two hundred brokers, the CySEC only gave licenses to about ten binary option brokers. All EU member states recognize the CySEC license of financial investment companies.
The reason traders mostly choose to use a CySEC regulated broker is because of the complaint form (click to view). When a trader has a withdrawal problem at an unlicensed or unregulated broker, who is the trader going to turn too? The sad truth is no one! The trader is basically screwed out of their money.
Here is details about brokers licensed by the Cyprus Securities and Exchange Commission. If the broker you are researching is not on this list, there is a good chance they do not have a license.