Article source: digitaljournal.com
Most of the binary options brokers are not licensed or regulated. With over 300 binary options brokers online, it is becoming increasingly difficult for traders to discern which broker to use.
There are now more than 20 binary options brokers that are legitimate licensed financial institutions. They may be licensed by CySEC in Cyprus or a financial regulator like the FSPR in New Zealand. The main thing is that they are licensed.
If a broker is not licensed, then there is no guarantee for the investor that the broker will not close their website one day, and their funds are lost.
Largest Binary Options Brokers
24Option (read review) is one of the largest binary options brokers in the world. They hold a license from CySEC in the European Union. They are also registered with country financial regulators in England, France, German, Italy and Netherlands. Their trading platform is user friendly to beginners and experienced traders alike. 24Option has a monthly trading competition with huge prizes.
TopOption is another mega sized binary options broker. They are owned by the large forex broker dealer Markets.com. They use the Keystone trading platform which offers returns of 85% on $EURUSD and Crude Oil Binary Option contracts. They currently have the lowest minimum deposit for a licensed broker of only $100 for new accounts.
Although many brokers compete with 24Option & TopOption, They were in the first group of brokers to receive a broker’s license. Now the competition is increasing for them.
New Licensed Brokers
10Trade opened at the end of 2014, as a CySEC licensed broker using the SpotOption trading platform. They are a broker who puts their efforts into new investor training.
Binary Globes is the binary options brokerage firm for the forex brokers Stock.com. They just opened in January 2015 with a license from CySEC in Cyprus.
Tradarea also opened in January 2015 and they are using the new trading platform called Hello Markets. The software is unique as it offers traders signals for binary options based on technical indicators. The signals are free and easily viewable inside the traders software.
So Who is The Best Broker?
The best binary options broker is a licensed broker. Traders in a European country can rely on a broker licensed under the Mifid rules of the EU. Traders outside of the EU, must research more closely their choice of broker.
Some EU licensed brokers have created separate companies which are not licensed for clients outside of the EU. Recently traders have started seeking out brokers that are licensed in New Zealand instead of Cyprus.
For an Updated List of Top Rated Brokers see here.
Each month, the list of top rated binary options brokers changes based on feedback from traders.