Safe trading is one of the biggest concerns of traders worldwide. With news of scams in the industry on the rise in recent years, traders are reluctant to invest their money with only the most secure brokers that come highly recommended, and with good reason.
Here at Fairbinaryoptions, we take traders’ safety extremely seriously. Although we feature a list of unregulated brokers on our site, we no longer promote them in any way.
The following brokers are unregulated binary options providers:
Being regulated indicates a high level of quality since brokers are required to comply with strict standards imposed by financial regulatory bodies and national watchdogs
Regulation varies with different countries. The leading financial services regulator within the EU is CySEC while the national watchdog for New Zealand is currently the Financial Markets Authority. These authorities were set up with the aim of safeguarding the interests of customers and regularly publish information on unregulated brokers.
Of course, this is no iron-clad guarantee that nothing will go wrong when trading binary options. However, traders will be ‘insured’ and protected by these authorities and have more of a chance improving the situation, in the event that problems do arise.
Learn more about binary options regulation across the world.
Unregulated brokers are not all necessarily bad; it’s just that they are operating without a valid license.
Think of it like this: you wouldn’t think of jumping into a cab with a driver without a driving license, putting your life at unnecessary risk. Where possible, you would almost certainly go for a cab driven by a fully licensed driver; the same goes for your hard-earned savings.
With a community of over 7000 traders from all corners of the world (and counting), we have received many emails from our readers with complaints about unregulated brokers.
Unregulated brokers are notorious in the industry for unethical business practices and unprofessional behavior. Traders oftentimes get drawn in by flashy marketing schemes and grand promises, before realizing that they were victims of these brokers.
Some common examples of questionable broker behavior:
One important pro of regulated brokers is that that all traders’ funds are kept in a segregated bank account from that of the company to ensure that they are only used for the sole purpose which they were intended for and not be compromised in case anything happens to the company.
Apart from this, there are several other ways in which broker regulation can make a huge difference to the trading experience:
Unregulated brokers, on the other hand, are in no way obliged to abide by these rules and may only do so out of good will and an ethical code of conduct; not something to bet your money on in this industry.
At FairBinaryOptions, we strive to review as many providers as possible, both regulated and not, to find out which are safe to trade with and which are best to stay away from. We always recommend trading only with honest, reliable, regulated providers, so traders can put their mind at rest that their money is in safe hands.
We feel there is no reason to opt for an unregulated broker; with such a wide variety of regulated brokers on the market, traders will be spoilt for choice.