Fair Binary Options’ goal is to provide traders with honest information about the most popular brokers available online. This means that we only recommend brokers we think provide a good service. Since the quality of service is the main criterion, we cannot claim that regulated brokers are always better than unregulated ones, because each provides different services and the quality standards vary. We have seen regulated brokers that have been scams, and unregulated that have proven to consistently deliver good experience.
In spite of the fact that traders have reported unpleasant experience with both types, most of them prefer to trade with a regulated broker, since it makes them feel confident that their funds are safer. This is due to the fact that they are authorized by a governmental institution, signaling clients that they are choosing a good and reputable platform. Traders can rest assured that their money is on good hands and their personal data is safe, but remember that there is a wide range of options and each broker or platform has its own features. Quality varies even when it comes to authorized brokers, which is why all the criteria should be evaluated before making the final choice. In order to support traders during the decision making process, Fair Binary Options provides a list of regulated broker reviews.
The main benefit that regulated brokers offer is the minimum transparency and structured operating procedures in cases of complaints. They have a clear set of data on risks, strict conditions related to provisions, and they also have some limitations when it comes to countries from which they accept customers. In addition to this, when it comes to disclosure, regulated binary brokers are extremely careful, because there are many newcomers in the binary options industry, who may not be able to use all the information they receive to make a sustainable decision. This is why it is important for brokers to have clear procedures and rules regarding information they are obliged to explain to their customers.
Traders often cannot see the risks and do not understand how important proper education is before starting to trade binary options. They also mostly do not read Terms and Conditions. Besides beginners, whose experience can be safer if they trade with a regulated broker, experienced traders also prefer this alternative, due to the fact that they invest a lot of money. For this reason, they feel safer knowing that the broker is supervised by a governmental institution, because this means they will guarantee certain standards of quality. Even if the competition among brokers is fierce, another advantage of the regulated inary brokers is that they often take part in an investor compensation fund that covers part of the traders’ claims, in case of bankruptcy.