Binary Options Regulation

[Rambo35]

I think binary options have been some of the most debated asset for quite some time. Most think they are a scam and true enough most binary options brokers do scam their clients. The marketing is even worse than that of forex brokers and some of the most misleading I have seen.

I have looked at several dozen binary options brokers and one thing they have in common, with the exception of one I can remember, is that they are unregulated. I have tried two binary options brokers myself, just to see if it makes sense for me to have a minor amount of capital at work there and one turned out to be good and the other one not so much.

I have heard that in 2014 every binary options broker needs to be regulated or they will be shut down. Does anyone in this forum know anything more about it?

I am just curious about it and don't plan to trade them actively, I keep my one account and place a trade or two every so often. I am not sure if anyone in here trades them or not. Please do not hijack this thread and talk about if they are scam or not as that is being discussed plenty of times and everyone needs to form their own opinion.

 

[Red Herring]

I think binary options have been some of the most debated asset for quite some time. Most think they are a scam and true enough most binary options brokers do scam their clients. The marketing is even worse than that of forex brokers and some of the most misleading I have seen.

I have looked at several dozen binary options brokers and one thing they have in common, with the exception of one I can remember, is that they are unregulated. I have tried two binary options brokers myself, just to see if it makes sense for me to have a minor amount of capital at work there and one turned out to be good and the other one not so much.

I have heard that in 2014 every binary options broker needs to be regulated or they will be shut down. Does anyone in this forum know anything more about it?

I am just curious about it and don't plan to trade them actively, I keep my one account and place a trade or two every so often. I am not sure if anyone in here trades them or not. Please do not hijack this thread and talk about if they are scam or not as that is being discussed plenty of times and everyone needs to form their own opinion.

So far I know they are scam. Stay away from them. I have seen so many people complaining after loosing money on binary options. At least most of them are scam and new traders are caught by the scams not by the very few well regulated brokers!

 

[traderapril]

There are a few regulated brokers, and the Binary Options Exchange covers who is regulated and who isnt.

It is easier to find a regulated broker for Europe, but there are regulated ones that accept americans.

Just google regulated binary options and you should find what you are looking for.

 

[Pharaoh]

There's no way to force them all to be regulated by 2014. Maybe one country or a group of countries could have such a rule, bad brokers (binary or forex) can always just relocate to avoid real regulations.

Also, beware of some regulators. There are so-called regulators that won't ever do more than kick a company out. What good does that "regulation" do for a customer who is robbed by a broker?

 

[Rambo35]

So far I know they are scam. Stay away from them. I have seen so many people complaining after loosing money on binary options. At least most of them are scam and new traders are caught by the scams not by the very few well regulated brokers!

I would not generalize all of them as scam, I do agree that most are terrible and not so much with cheating clients but with trading conditions. I have had no issues with the one I use, but as I said I rarely trade them anyway. They have always paid me out so I can't agree that they are scam. I know most complain after losing money or not being able to withdraw money, but often that is because they have accepted big bonuses and did not bother with the terms and conditions just like when trading forex.

 

[Pharaoh]

There are still plenty of "deposit-only" complaints against many binary brokers, even among those who explicitly turned down the bonus money.

Personally, I wouldn't trade with any binary broker. The risk/rewards are already stacked 20-40% in favor of the house. Las Vegas roulette tables are a better bet.

 

[GOR FX]

No matter how you try to justify the operations of the BO companies, they are still unregulated at the moment and basically shouldn't be in business.
Gonna have to wait till the FCA make a decision