Many binary brokers do not have a license from an EU financial regulator. There are a few brokers that have received a license and we will show you how to verify the license. Simply put, the best binary options broker to use is one that holds a valid license and is regulated in your country.Traders in the United States will not find a European licensed broker that accepts them. US Traders should read about Nadex, which is a regulated and legal binary options exchange, see here.
1. Is your broker actually EU regulated?
It is safe to say that your broker is probably not licensed and not regulated in the European Union or anywhere for that matter. The CySEC (Cyprus) license is a 5 digit number, with a forward slash in the middle.
24Option is owned by CySEC licensed Rodeler Limited, whose license number is 207/13. All licensed brokers will proudly display their license number on their website like you will see at http://24option.com.
2. Where can traders submit a complaint about a broker?
When trading with a CySEC licensed broker you can take your complaints to the Cyprus Financial Ombudsman, see here. If you are using an FCA licensed broker, then you can utilize the Financial Ombudsman, see here.
However, if you are dealing with an unlicensed broker, then there is no place for you to go when you have a problem.
3. Does it really make a difference if the broker is licensed?
Yes, 100% it makes a difference. Every month quite a few brokers close down for a variety of reasons. When the broker is licensed, they must file with their regulator and appropriately notify their clients about their closure. Funds are returns and traders find a new broker.
The problem is with unlicensed / scam brokers is that even when they are still active, they will never process your withdrawal request. They will give you every reason to deposit more money, but never actually return your money.
Below are binary option brokers that are licensed.
It is very important for traders to always verify that the binary brokers license is still active. Traders can visit CySEC at: http://www.cysec.gov.cy/ and do a quick search for the license number of the broker they wish to trade with.
The regulator of financial institutions and binary option brokers is usually the European Union member country Cyprus. Their securities and exchange commission is called CySEC. The CySEC license allows binary brokers to accept traders from countries that are members of the EU and countries that recognize CySEC as a legitimate regulator of binary option brokers.