A Big Decision You Must Make
So you have decided you want to trade Binary Options. You have also decided what funds to allocate and that you are going to learn how to trade.
Now you have an important decision to make that could affect your trading performance and more.
You must decide which broker you are going to deal with. Put another way, you must decide which broker you trust sufficiently that you are ready to put money into an account they will create.
Importantly, you must trust the broker before you begin to decide who is likely to offer you a good deal.
Can you Trust Brokers?
The short answer is Yes: there are plenty of genuine brokers offering a good service. But not all do so.
No doubt you will have seen many warnings on the internet about scams and fraudulent brokers operating in the Binary Options sector.
There is some basis for these warnings, but they need not put you off trading. You just need to take a bit of care when making your decision.
The services offered by different brokers will differ and some of what you come across may appear to be very good offers. Too good probably.
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There is one golden rule you should follow when choosing your broker: deal only with a regulated broker.
You will also probably have seen plenty of sites with advice on which is the best broker. These can be useful, but just be aware that the advice is not always impartial.
Many of these sites are operated by affiliates of the brokers and so they have a vested interest in getting you to open an account.
I’m not saying these sites are not providing accurate information. Many of them are doing so.
I’m certainly not saying that the brokers whose names appear on affiliate sites cannot be trusted. Affiliate marketing is simply a form of advertising that is used on the internet.
Like any other advertising it has two primary functions: to inform and to persuade. Just remember that you are looking to be informed while the site operator is looking to persuade.
So, how are you to make the decision?
Making the Decision
There’s no easy answer and I’m not going to add to the vast amount of information that is available by claiming that a certain broker is best.
The eBook you previously downloaded identifies a number of things you should check before opening an account with any broker. However, it is still you who must make the decision.
Your first criterion must always be that you can trust the broker. Nothing else matters until you make sure of this. So forget about special offers or competitive payout ratios or anything else until you have satisfied yourself on this.
Regulation of Binary Options Brokers eBook
One of the reasons why you need to be care on this point and why problems have arisen in relation to Binary Options is that the proper regulation of the sector has been slow to develop. This is changing.
A couple of years ago the only real regulation was that put in place by CySEC in Cyprus and the restrictive legislation operated by the SEC in the US.
Over the past year or so, the UK has reclassified Binary Options so that they are now regulated as financial products. There have also been important developments in Japan, Australia, the EU and elsewhere.
These developments in the regulation of Binary Options brokers have important implications for how brokers operate and will also affect the types of products that are provided and under what conditions.
There are also important new safeguards for customers and increased options for recourse if things go wrong.
The structures being put in place in these countries provide a template that is likely to continue to expand in the near future.
Deal Only with a Regulated Broker
To help you, we have put together a short eBook entitled Regulation of Binary Options Brokers that provides an overview of the current state of regulation of Binary Options brokers.
It surveys the regulation in place in a range of countries such as Cyprus, the UK, the US, Japan, Australia and others.
It also contains recommendations for traders looking to ensure they are not the victims of unscrupulous operators.
The eBook is free for you to download with no commitment. Click here to download. I’m confident you will find it useful in making your decision.
But remember: deal only with a regulated broker. If there was ever any reason to deal with a non-regulated entity then recent developments mean this reason no longer exists.
Furthermore, these developments mean that the potential for fraud is declining and, provided you take the necessary care, there is little reason for you to be put off trading Binary Options for fear of being scammed.