FAQ Binary Options Brokers
The process of reading reviews of binary options brokers is long and tedious. Our goal here at FAQ Binary is to make the decision process easier for traders seeking the best brokers.
We have analyzed and reviewed over 100 binary option brokers in the past few years. During this time, new brokers have opened, and others have closed. We have found many brokers that are real legitimate financial firms, while others are simply offshore scam operations.
Each year hundreds of investors fall victim to online scams that can easily be avoided had the investors done their research.
Learn more about the best binary options brokers.
Legal Binary Options Brokers
When choosing a broker it is extremely important to only trade with a licensed and regulated firm.
The licensing of binary option brokers varies depending on your country of residence. Investors in the United Kingdom should seek a broker licensed and regulated by the Financial Conduct Authority. Investors in Australia should use a broker licensed by the Australian Securities and Investments Commission.
European binary option traders have the widest selection of licensed brokers to choose from. The Cyprus Securities and Exchange Commission was the first government regulator to issue licenses to binary option brokers. As a member of the European Union, the CySEC license is accepted in almost all the EU member states. Certain countries like Italy and Germany have required brokers to also register as a foreign broker with their local regulatory agency.
Read more about the best brokers for you.
Binary Option Trading Software
When the concept of a binary option was first introduced, the brokers wanted to create a simple way for amateur investors to trade the markets. All the investor needs to do is choose if the underlying asset is going to move higher or lower.
A few years later, companies started developing trading signals or trade alerts to assist the investor with new investment ideas.
There is now a proliferation of trading systems, automated trading robots, and binary option signals. These systems are mass marketed to people who have never heard of trading the markets. The systems make unrealistic promises of “100% Accuracy” and “Guaranteed Profits”.
There is a long standing argument on Wall Street among stock pickers as to who is better, a stock market analyst or a monkey in the zoo. There have even been studies done which show a monkey making better predictions in the stock market than the best analysts on wall street.
If you choose to use a signal generator, then remember to research the idea, before placing your trade.
Read more about the best trading robots.
Binary Options Scam
Scoundrel fraudsters have entered the online trading industry and have figured out way to ripoff many innocent individuals looking to invest their hard earned money in binary options trading. The scam brokers are setup to look like legitimate firms. The simplest way to know that they are not legitimate firms, is when they do not have a license number displayed on their website.
The other easy way to detect a scam broker is when they call you and use high pressure sales tactics. The government laws in most countries do not allow financial firms to solicit investments from regular individuals. This is because a firm must ensure that the individual understands the risk of the investment.
So when a salesman calls you and offers a guaranteed return to manage your money, you should know that it is in fact too good to be true.