Binary Options Regulations
To Regulate or Not to Regulate
When it comes down to people’s money security is everything from the banks we choose to the investments we make each and everyday. Binary Options are no different in this respect as it is a real world money investment that comes with risk. One of the common misconceptions about binary options is that they are nothing short of gambling or that they are an outright scam but neither of these things is true.
When it comes down to it there is simply a lack of information about binary options that allows people outside to gain a little insight and it has been a problem among traders since trading began. Generally speaking in the cut-throat trading world giving your secrets away is seen as nothing short of foolish and it has left Binary Options is a bit of a blind spot. I’m not here to play the blame game but it is something that needs addressing on all sides.
One of the major drawbacks of being both innovative and left in the shadows is that no-one really knows enough about them to make sound judgments both for media purposes and of course regulation. It is so much of an issue that even today in the UK it is covered by the gambling commission for regulation which is just plain wrong in every aspect. The real issue is that people simply don’t yet know where it all fits in and it is something the industry really needs to work on.
Binary Options Regulations in Cyprus
But before we get all doom and gloom about it there is good news. Regulations and regulatory bodies are gaining ground over options making it a safer way to invest everyday. If you look at the top 20 Binary Options sites you will see that they are all covered by at least one regulatory body. Most of them are covered by the Cyprus Securities and Exchange Commission or CySec but this is not a dodge. It is because the majority of options brokers work out of Cyprus while the rest, or newer brokers, prefer to operate from their home country where they internal with internal law structures.
For balance of course I find it necessary to mention that dealing with unregulated brokers does carry with it an increased risk should something go horrifically wrong but this does not make them scam artists. Even using regulated brokers there is always the risk of financial loss which is the draw of market trading the world over.
If you are invested into a broker and are unsure about the safety of your funding it is a good idea to do a little research into who regulates them and to what degree. Every regulatory body provides different guarantees over your investments and it is wise to know how covered you are.
One of the best parts about binary options is that it is run by traders who have had years in the financial world and are doing there best to make it more accessible to everyone which in turn means that as it gains in popularity and notoriety it has to be better regulated which drives the wheels of progress forwards. So here is to a bright future for the options industry.