Law and Regulations


First binary options were introduced and developed in the year 2008. Ever since, lots of changes have happened, for example, most of the countries from all over the world made a decision to settle binary options officially. What does it mean? – Official regulation involves safe trading atmosphere for all traders. Now according to laws, all brokers have to propose only safe and fair options to their traders. In case of a  fail, fines will follow or what is more – closing of working places and business.

InvestManiacs advise you to use only reputable US binary options brokers. Try BinaryMate

Countries which are regulated by the state

On a world-wide basis, binary options are controlled by a variety of legal competences meaning that each and every trader is protected. Yet there are still some countries where these regulations are not taken into account. But this doesn’t mean that these countries are not legitimate or are illegal to offer financial services, it just means that the state is indifferent to such kind of trading.

Countries which are definitely legitimate and are regulated by the state are the following: Malta, Cyprus, all EU countries, the USA, United Kingdom etc.

Countries which are NOT regulated by the state

As it was mentioned above there are countries which are regulated by different legal notices and states which are not. Despite this fact, it doesn’t signify binary trading in not-regulated countries is forbidden. Absence of law concerning binary trading restrictions means that binary options are absolutely legal. Yet if there is such a law, then you should not trade there. Consequently, to be protected always check and research everything twice.

Is scam possible in not-regulated countries?

Being a citizen of a country where binary trading service isn’t not controlled isn’t a problem at all. The most significant point here is to register with a regulated binary options broker. And it is possible as any broker from any country is capable of getting a license from jurisdictions which are located in the UK, Malta, Cyprus, the US etc. In this way a trader will be protected from any possible abuse. But in case if a trader registers with unregulated broker sooner or later it will lead to abuse and fraud things from the broker’s side.

Regulated Binary Options Brokers

When trading, it is extremely important to choose the right, respective and above all legal/legitimate broker. First of all check the broker’s license, location (the UK, the US, Cyprus, Malta, EU countries),legitimacy, variety of offered assets (shares, stocks, commodities, Forex currency pairs etc),payout percentage (high/low options 80%-90%, boundary or one-touch 400%-600%),withdrawals etc. As soon you see that a broker is from, let’s say, British Virgin Islands then it is a direct and red light of a fraud or not regulated by jurisdictions place. Always avoid such brokers and their services no matter how high payout percentage etc they offer.

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