Binary options brokers regulated by sec registered
The thing to remember is that binary options are legal in the EU. Brokers now face fines up to 1 million Euros for non-compliance. Similar requirements have also been proposed for the use of market makers. Earlier this year CySEC revealed some changes brokers will have to make in order to remain compliant. For the most part, the brokers are pleased with the new rules and, in fact, some brokers were already moving in that direction.
The IQ Option spokesperson went on to say that the new rules will force a consolidation in the industry. The smaller brokers and the scams will not be able to keep up with the changes leaving only the larger, more established and more trustworthy brokers behind.
Technology providers are not immune to the changes either. Most brokers are white labels of top platforms like Tech Financials, SpotOption and Tradologic who will also have to comply with the changes. Tech Financials, the first publicly traded binary options platform provider, executive director Jeremy Lang believes the changes are good for the traders and the industry. Representatives of binary options websites may use fictitious names and tout fake credentials, qualifications, and experience.
They may misrepresent where they are calling from for example, pretending that they are in the U. If you are considering investing money with a binary options website, look out for these red flags:. In addition to perpetrating fraudulent investment schemes, the operators of binary options websites may be violating the federal securities laws through other illegal conduct, including:.
Furthermore, if any of the products offered by binary options trading websites are security-based swaps , additional requirements will apply.
Banc de Binary , the binary options seller allegedly solicited U. Some safeguards and remedies are available only to purchasers of securities in registered offerings.
In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings. Canadian Securities Administrators Investor Alert: Unregistered binary option platforms target Canadians.