MUST READ - Binary Options Brokers Warnings
(+) You must always be careful when trading with binary options brokers, some of them that look to be legit and even are regulated have turned out to be nothing more than boiler rooms and bucket shops.
(+) When first dealing with ANY binary options broker first deposit a SMALL minimum deposit for trading.
(+) Never take ANY bonuses! After making profits from first trade ask for an immediate withdrawal.
(+) If you are called on the phone and asked to make any LARGER deposits ALWAYS say NO.
(+) After making a successful withdrawal of first profitable trade + deposit amount you can start to trust the broker.

Binary Options Regulations

While most of these regulators have not now or in the past tried to regulate binary options trade, some of them such as CySEC (Cyprus), FCA (UK), CFTC (USA) have sent out warnings and given out fines and bans on fraudulent or dubious brokers trying to market their brokerage in to citizens of the country where the brokerage is not regulated.

In the USA binary brokerages can get regulated by the CFTS and CySEC is also working on regulatory framework outlined for binary options brokers and companies. Platform providers such as TechFinancials have also started to adapt their platform to these new regulation frameworks.

World Lists Of Regulatory Bodies by Country

You can check any one of the following websites for information regarding regulation of binary options in their region of regulation:

Although binary options are regarded as alternative investments, they are still regulated to some extent. Some of the regulatory agencies that regulate and monitor the trading of binary options include CFTC, FCA, Gambling Commission and CySEC. Each of these regulators monitor trading in specific areas. Regulation of binary options trading helps to protect traders and investors from unfair and unscrupulous brokers. Regulation also gives traders and investors greater confidence when dealing with brokers who are regulated. It is therefore no surprise that those brokers who decide to be regulated usually have a competitive advantage due to the higher trust factor.

Regulation offers many benefits to brokers including protection of deposits, segregation of your money, security and verification of your identity, stability in securing capital requirements as well as transparency and ongoing supervision.

The Cyprus Securities Exchange Commission (CySEC) was among the first regulators to start regulating the trading of binary options in May 2012. Since then, several other regulators have sprung up all over the world.

Recently, it was announced that the US Trading Commission fined Vault Options and Global Trader 365 over $4.5 million due to binary options scamming. France also has taken actions against several binary options firms based on their view that the operations are risky and dangerous. In the meanwhile in Belgium, the Financial Services and Markets Authority (FSMA) has completely banned binary options trading companies from operating in the country. The reason is because of what the FSMA views as extremely risky securities that have no connection to the real markets. 

Binary Options Regulation remains important so that binary options traders can feel confident while conducting high risk financial transactions. Also, brokers can benefit from the competitive advantages that regulation offers.