Binary options regulated by cftc

binary options regulated by cftc RELEASE fraudadv_binaryoptions. The Commodity Futures Trading CommissionЂ™s (CFTC) Office of Consumer Outreach and the Securities & Exchange CommissionЂ™s Office of Investor Education and Advocacy are issuing this Investor Alert to warn about fraudulent schemes involving binary options and their trading platforms. These schemes allegedly include refusing to credit customer accounts, denying fund reimbursement, identity theft, and manipulation of software to generate losing trades. Binary options differ from more conventional options in significant ways.

A binary option is a type of options contract in which the payout will depend entirely on the outcome of a yesno proposition. The yesno proposition typically relates to whether the price of a particular asset that underlies the binary option will rise above or fall below a specified amount. For example, the yesno proposition connected to the binary option might be something as straightforward as whether the stock price of XYZ company will be above $9.36 per share at 230 pm on a particular day, or whether the price of silver will be above $33.40 per ounce at 1117 am on a particular day. Once the option holder acquires a binary option, there is no further decision for the holder to make as to whether or not to exercise the binary option because binary options exercise automatically.

Unlike other types of options, a binary option does not give the holder the right to purchase or sell the underlying asset. When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all. Given the all-or-nothing payout structure, binary options are sometimes referred to as Ђњall-or-nothing optionsЂќ or Ђњfixed-return options. Ђќ. Binary Options Trading Platforms.

Some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by United States regulators such as the CFTC or SEC, respectively, but this is only a portion of the binary options market. Much of the binary options market operates through Internet - based trading platforms that are not necessarily complying with applicable U. S. regulatory requirements. The number of Internet-based trading platforms that offer the opportunity to purchase and trade binary options has surged in recent years. The increase in the number of these platforms has resulted in an increase in the number of complaints about fraudulent promotion schemes involving binary options trading platforms. Typically, a binary options Internet-based trading platform will ask a customer to deposit a sum of money to buy a binary option call or put contract.

For example, a customer may be asked to pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ Company is above $5 per share when the option expires. If the outcome of the yesno proposition (in this case, that the share price of XYZ Company will be above $5 per share at the specified time) is satisfied and the customer is entitled to receive the promised return, the binary option is said to expire Ђњin the money. Ђќ If, however, the outcome of the yesno proposition is not satisfied, the binary option is said to expire Ђњout of the money, Ђќ and the customer may lose the entire deposited sum.

There are variations of binary option contracts in which a binary option that expires out of the money may entitle the customer to receive a refund of some small portion of the depositЂ”for example, 5%Ђ”but that is not typically the case. In fact, some binary options Internet-based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect given the payout structure. For instance, in the example above, assuming a 5050 chance of winning, the payout structure has been designed in such a way that the expected return on investment is actually negative , resulting in a net loss to the customer. This is because the consequence if the option expires out of the money (approximately a 100% loss) significantly outweighs the payout if the option expires in the money (approximately a 50% gain).

In other words, in the example above, an investor could expect, on average, to lose money. Investor Complaints Relating to Fraudulent Binary Options Trading Platforms. The CFTC and SEC have received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms. The complaints fall into at least three categories refusal to credit customer accounts or reimburse funds to customers identity theft and manipulation of software to generate losing trades.

The first category of alleged fraud involves the refusal of certain Internet-based binary options trading platforms to credit customer accounts or reimburse funds after accepting customer money. These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by ЂњbrokersЂќ over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customersЂ™ withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails. The second category of alleged fraud involves identity theft. For example, some complaints allege that certain Internet-based binary options trading platforms may be collecting customer information such as credit card and driverЂ™s license data for unspecified uses.

If a binary options Internet-based trading platform requests photocopies of your credit card, driverЂ™s license, or other personal data, do not provide the information. The third category of alleged fraud involves the manipulation of the binary options trading software to generate losing trades. These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts. For example, when a customerЂ™s trade is Ђњwinning, Ђќ the countdown to expiration is extended arbitrarily until the trade becomes a loss.

Unregistered Transactions, Operations, Broker-Dealers, or Trading Exchanges Illegal Options Transactions. In addition to ongoing fraudulent activity, many binary options trading platforms may be operating in violation of other applicable laws and regulations, including certain registration and regulatory requirements of the CFTC and SEC, as described below. Certain Registration and Regulatory Requirements of the SEC.

For example, some binary options may be securities. Under the federal securities laws, a company may not lawfully offer or sell securities unless the offer and sale have been registered with the SEC or an exemption from such registration applies. For example, if the terms of a binary option contract provide for a specified return based on the price of a companyЂ™s securities, the binary option contract is a security and may not be offered or sold without registration, unless an exemption from registration is available.

If there is no registration or exemption, then the offer or sale of the binary option to you would be illegal. If any of the products offered by binary options trading platforms are security-based swaps, additional requirements will apply. In addition, some binary options trading platforms may be operating as unregistered broker-dealers . A person who engages in the business of effecting securities transactions for the accounts of others in the U. S. generally must register with the SEC as a broker-dealer. If a binary options trading platform is offering to buy or sell securities, effecting transactions in securities, andor receiving transaction-based compensation (such as commissions), it likely should be registered with the SEC.

to determine whether a particular trading platform is registered with the SEC as a broker-dealer, visit FINRAЂ™s BrokerCheck . Some binary options trading platforms may also be operating as unregistered securities exchanges . This would be the case if they matched orders in securities of multiple buyers and sellers using established non - discretionary methods. However, there are cases where a registered broker-dealer with a trading system or platform may legitimately have no obligation to register as an exchange. Certain Registration and Regulatory Requirements of the CFTC.

It is illegal for entities to solicit, accept offers, offer to or enter into commodity options transactions (for example, foreign currencies, metals such as gold and silver, and agricultural products such as wheat or corn) with U. S. citizens, unless those options transactions are conducted on a designated contract market, an exempt board of trade, or a bona fide foreign board of trade, or are conducted with U. S. customers who have a net worth that exceeds $5 million. To see the most recent list of exchanges that are designated as contract markets, check the CFTC website . There currently are only three designated contract markets offering binary options in the U. S. Cantor Exchange LP Chicago Mercantile Exchange, Inc. and the North American Derivatives Exchange, Inc.

All other entities offering binary options that are commodity options transactions are doing so illegally. Further entities that solicit or accept orders for commodity options transactions and accept, among other things, money to margin, guarantee, or secure the commodity options transactions must register as a Futures Commission Merchant. Entities that act as the counterparty (that is, they take the other side of the transaction from the customer as opposed to matching orders) for foreign currency options transactions for customers with a net worth of less than $5 million must register as a Retail Foreign Exchange Dealer. Because of their lack of compliance with applicable laws, if you purchase binary options offered by persons or entities that are not registered with or subject to the oversight of a U. S. regulator, you may not have the full benefit of the safeguards of the federal securities and commodities laws that have been put in place to protect investors, as some safeguards and remedies are available only in the context of registered offerings.

In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings. Ђў RememberЂ”much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U. S. regulatory requirements and may be engaging in illegal activity. Ђў Do not invest in something that you do not understand. If you cannot explain the investment opportunity in a few words and in an understandable way, you may need to reconsider the potential investment. Ђў Before investing in binary options, you should take the following precautions 1. Check to see if the binary options trading platform has registered the offer and sale of the product with the SEC.

Registration provides investors access to key information about the terms of the product being offered. You can use EDGAR to determine whether an issuer has registered the offer and sale of a particular product with the SEC. 2. Check to see if the binary options trading platform itself is registered as an exchange.

To determine whether the platform is registered as an exchange, you can check the SECЂ™s website regarding Exchanges . 3. Check to see if the binary options trading platform is a designated contract market. To determine whether an entity is a designated contract market, you can check the CFTCЂ™s website . Ђў Finally, before investing, use FINRAЂ™s BrokerCheck and the National Futures AssociationЂ™s Background Affiliation Status Information Center (BASIC) to check the registration status and background of any firm or financial professional that you are considering. If you cannot verify that they are registered, donЂ™t trade with them, donЂ™t give them any money, and donЂ™t share your personal information with them. Are there regulated brokers in US? As of the writing of this article, binary options are still an untapped marketing in the United States of America. There is a growing popularity for binary trading, but it still has not caught on in the US in the much the same way it has throughout the rest of the world. The two main regulatory bodies that operate in the US, the Securities and Exchange Commission and the U. S. Commodities Future Trading Commission are both unclear about where the ultimate jurisdiction over binary options lies. In the past, both commissions have released joint statements on the subject. The U. S. Securities and Exchange Commission (SEC) is the American agency responsible for enforcing the country’s securities regulation. It is responsible for regulation of stock and option exchanges among other financial markets. The U. S. Commodity Futures Trading Commission (CFTC) is an independent American agency created by the US government for the purpose of regulating future an option markets. Like mentioned above, despite the fact that binary options are surging in popularity around the world, it is still relatively unknown in the United States. All though this is starting to change. This is one of the reasons why it takes a bit more research to find regulated brokers in the US, and why the uncertainty about jurisdiction exists. If you were hoping to find CFTC brokers, you will be disappointed. Though there are many high quality binary options brokers serving US clients. You can find out where these platforms are regulated below. Why is there confusion with binary regulation in the US? Binary options are a much simpler version of more traditional options. With more traditional options, a trader has the option to purchase the underlying asset at the current price no matter the future value. Binary options are simple – which is one of the reasons why they have become so popular recently. A binary trade is essentially a yes or no question do you think the price of an asset will go up or down in a specific timeframe. As a result of its similarities and differences to more traditional options, binary can be regulated in many different ways. Binary options can be regulated as a financial instrument (a financial instrument is any tradeable asset). This allows options to be traded in countries that prohibit gambling, for example. However, they can also be regulated as a sort of betting. In England for example Binary Options are not regulated by the Financial Conduct Authority. The gambling regulatory body regulates binary options. The financial regulatory environment in the US has not been entirely warm to binary options over the past few years – mainly because it can bear similarities to online gambling. There are signs that this approach might change in the near future. Until then, most binary trading platforms are still headquartered in place such as Cyprus and regulated by CySEC, a regulatory body within the European Economic Area. As of the writing of this article, US citizens are allowed to trade binary options as long as the specific state or local authority in which they live doesn’t have a specific statute against it. How can I find a platform that is equivalent to a CFTC regulated broker? In the previous paragraph, I mentioned that because of a lack of clarity surrounding the regulation of binary options in the United States the binary options platform with which US citizens can trade are located outside the US. Most of the platforms are located in Cyprus. Binary brokers in Cyprus are regulated by CySEC, the Cyprus Securities and Exchange Commission. CySEC is a financial regulatory authority included in the European Economic Area, and is generally accepted as a respected regulatory body. There are binary option platforms, which are headquartered outside the US but accepts US citizens among its clientele are What are Binary Options? A binary option asks a simple yesno question If you think yes, you buy the binary option. If you think no, you sell. Either way, your price to buy or sell is between $0 and $100. Whatever you pay is your maximum risk. You can't lose any more. Hold the option to expiration and if you're right, you get the full $100 and your profit is $100 minus your purchase price. And with Nadex, you can exit before expiration to cut your losses or lock in the profits you already have. That's pretty much how binary options work. Turn up your speakers and follow our interactive guide. Trade Many Markets from One Account. Nadex lets you trade many of the most heavily traded financial markets, all from one account The Dow ® , S&P 500 ® , Nasdaq-100 ® , Russell 2000 ® , FTSE China A50 ® , Nikkei 225 ® , FTSE-100 ® , DAX ® EURUSD, GBPUSD, USDJPY, EURJPY, AUDUSD, USDCAD, GBPJPY, USDCHF, EURGBP, AUDJPY. Gold, Silver, Copper, Crude Oil, Natural Gas, Corn, Soybeans. Fed Funds Rate, Jobless Claims, Non-farm Payroll. Linked Desktop & Mobile Platforms. Our fast, secure online trading platform runs on PC, Mac, or Linux. We offer powerful, full-featured apps for iOS, iPad, and Android. Enter a trade on one platform and manage it from another with the security of a reliable, direct connection to the exchange. Open With a Debit Card. Nadex is designed for individuals to trade binary options and spreads on a level playing field. That's why we have a low minimum opening balance. Opening an account is simple and free online. Fund with a debit card and start trading in minutes. Secure, Transparent, Regulated. Nadex is the first and largest US-based, CFTC-regulated binary options exchange. We hold member funds in segregated accounts in top-tier US banks. Nadex operates with transparency and never takes positions in the markets or trades against members. Fill out our online application in just a few minutes. You’ll get a quick response. Once it’s approved, you can fund your account and be trading within minutes. Trade all the markets you love. US Toll Free 1 877 776 2339. 311 South Wacker Drive. Chicago, IL 60606. Trading on Nadex involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Any trading decisions that you make are solely your responsibility. Nadex instruments include forex, stock indexes, commodity futures, and economic events. Regulated & Legal for US Residents. Binary options are legal and available to trade in the US only on a CFTC-regulated United States exchange. Nadex is designated by the Commodity Futures Trading Commission as a Designated Contract Market and Derivatives Clearing Organization. The CFTC is a US government agency overseeing futures, options and swaps trading. Its mission is to protect market users and the public from fraud, manipulation, abuse, and systemic risk. Some online binary option providers may not be properly registered and regulated. They are based outside the US, operate outside US law, and may hold member funds in various types of offshore accounts. They cannot legally offer binary options to retail customers in the United States. Trade all the markets you love. The Difference Between an Exchange and a "Broker" As a CFTC-registered Exchange and Clearinghouse, Nadex adheres to regulations including Nadex matches buyers and sellers and does not participate in trades Nadex holds all member funds in segregated accounts in top-tier US banks (Fifth Third Bank, BMO Harris Bank) Nadex's gets its income solely from exchange fees, not from taking positions in the market. Make an Informed, Safe Choice. If you are a US resident trading binary options with an offshore "broker" or "provider," ask your broker some tough but fair questions Are they based in the US and is it legal for them to solicit customers in the US? (Hint it's not.) Do they hold customer funds in segregated accounts in top-tier US banks? Can you withdraw your funds at any time using the web or mobile app and receive a wire or ACH transfer right away? Do they ever take the other side of a trade to fill a customer's order? Do they ever profit because a customer on the other side lost? Nadex does not engage in any trading. We are not a buyer or seller in any transactions. Our leadership has experience in the legal and IT aspects of exchange operations. Our primary function is ensuring that all trades are executed fairly and in compliance with US law. Fill out our online application in just a few minutes. You’ll get a quick response. Once it’s approved, you can fund your account and be trading within minutes. Regulated Binary Option Brokers. Regulated, licensed, authorized or accredited, call it what you want, but change is happening in the binary option brokers industry! Currently, more than twenty binary option brokers are regulated by CySEC. Cyprus is a member of the European Union, and the CySEC license is accepted by all EU countries. Read the explanation of MiFID here. The best brokers are based in Australia and are licensed and regulated by ASIC in Australia. No CySEC or ASIC regulated brokers will accept binary option traders from the United States. Regulated Binary Option Brokers. Investors who want a real automated trading robot, only use Option Robot Pro. 365Trading is licensed by CySEC #18112. They offer a one of a kind trading platform, free demo accounts, and a $100 minimum deposit, read more. BDSwiss is a popular CySEC licensed broker #19913, that offers both Forex trading and binary options. New accounts start at $100, see here. ETX Capital is an FCA authorised & licensed Forex broker with offices in London. Traders at ETX Binary get 100% returns, free signals, and the minimum deposit for binary trading is only $100. HighLow is regulated by Australia’s ASIC. They use the Markets Pulse trading platform and have the lowest minimum deposit of only $50, read more. IQOption is a popular broker that is licensed in Cyprus offering a unique trading platform. Their minimum deposit is only $10 and you can start with a free demo account, read more. OptionStars is CySEC regulated with license #23814, and they offer the Tradologic platform, see here. Trade Financial EU (read review) is licensed and regulated by CySEC in Europe. They are offering the popular SpotOption trading software for binary trading, see here. General Information About Regulated Brokers. Popular binary option brokers are supposed to be regulated by the CFTC in the United States, or by ASIC in Australia. Most of the regulated brokers today are licensed and regulated by the Cyprus Securities and Exchange Commission, which is a member of the European Union. Using a regulated binary options broker is not a guarantee that your funds are secure. CySEC is not the same as the US CFTC, and does not offer investors the same level of protection of their funds. It is questionable if CySEC offers protection to traders located outside of Cyprus, although EU countries recognize CySEC regulation as a proper financial authority due to their EU member status and the rules of Mifid. The issue of broker regulation came to light during the Cyprus financial crisis in 2013. Many binary option traders were concerned about the safety of their trading accounts. The best option for a binary options trader is to contact a regulated broker and ask where trading account funds are deposited, and what guarantee, if any, the broker can provide to ensure your money is safe. Traders should open accounts with two different regulated binary option brokers. Test out the trading platform, test the withdrawal procedures and ensure that it is easy to make withdrawals. Of the top 3 binary option brokers 24Option, HighLow and IQOption, the first to be regulated in Australia was HighLow. As of June 2017, there are less than 20 binary options brokers that are licensed & regulated by ASIC, FSB, CFTC or CySEC. binary options regulated by cftc Ready to Get Started? Nadex is subject to U. S. regulatory oversight by the CFTC. The maximum risk for any trade is fixed and required in advance so you cannot be called upon for further funds. But please remember these are volatile instruments and there is a high risk of losing your initial investment on each individual transaction. On Nadex you can trade Binary Options and Spreads to take a limited-risk position on price movements in forex, commodity futures and equity index futures markets. Binary trading allows you to take a 'yes' or 'no' position on these markets, with a strictly defined maximum profit or loss. As a regulated, retail-focused exchange, Nadex provides traders with innovative products in a transparent, secure environment. binary options regulated by cftc Unlike many other jurisdictions, the United States has amongst the strictest regulations when it comes to providing binary options to US-based clients. As a result, there are only three exchanges regulated by the CFTC that have regulatory licensing to provide binary options trading. The three exchanges permitted to provide these types of investment services include Cantor Exchange LP, the Chicago Mercantile Exchange (CME), and the North American Derivatives Exchange (NADEX). Aside from these specific platforms, which must uphold the highest degree of standards to maintain their CFTC and SEC licensing, there are no other regulated binary options providers that are legally allowed to operate in the United States. While there are companies that provide services to US clientele, these types of services are normally unregulated, meaning that an investor has no recourse in the event of fraudulent or deceitful activities on the part of the broker. In an in effort to protect American investors, these regulatory agencies have taken a hard line towards unregulated entities and have stepped up their tools to enable investors to do their research prior to getting involved. To check if a broker is regulated and licensed, there is the BrokerCheck tool available from FINRA and the BASIC tool from the National Futures Association which is designed to verify the registration and background of any firm or licensed financial professional. Considering the lengths regulators go to protect investor interests, US binary options brokers are amongst the most secure when it comes to protecting client funds and providing remedies for any type of problems that may arise while investing. The Basics for Binary Options. With the proliferation of the internet and widespread use of mobile devices, investing has evolved significantly. Interconnected financial markets and new technology has made investing more accessible than ever before and led to the creation of numerous new products designed for beginners and less sophisticated investors. One of the easiest ways available to invest in global financial markets is with a product called binary options. A “binary” decision in simple terms implies that there are two available choices. When it comes to binary options, the product itself gives an investor two choices to buy or sell a financial asset. Once a binary decision has been made, an investor is entitled to a fixed gain if they make the correct decision or nothing if the wrong decision is made. What makes binary options unique is the fixed nature of the payouts from correct or incorrect decisions along with the ability to invest significantly lower amounts of capital than financial services companies would traditionally require. The result is an accessible financial product that can be used by a range of individuals from novice retail traders to highly sophisticated and advanced institutional investors. Thanks to the innovative nature of binary options, getting involved with global financial markets has never been easier. To get started, there are several different companies that provide these regulated services in the United States, including popular platforms NADEX and Cantor Exchange. CFTC releases review of the Nadex regulated Binary Options exchange. The U. S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight announced today that it has issued the results of a rule enforcement review of the North American Derivatives Exchange Inc. (Nadex), with the review results being fairly positive. Nadex is a regulated Binary Options exchange, owned by UK based online trading leader IG Group Holdings plc (LONIGG). The review, which covered a one-year target period, evaluated Nadex’s compliance with elements of the CFTC’s Core Principles 2 (Compliance with Rules) and 12 (Protection of Markets and Market Participants), including compliance with relevant CFTC regulations related to these Core Principles. The CFTC review found that Nadex allocates staff, information technology, and other resources to comply with Core Principles 2 and 12. Nadex also maintains a rulebook, and written policies and procedures for its staff. However, the CFTC made certain recommendations and identified certain deficiencies as noted below. The CFTC made three recommendations regarding Nadex’s (i) capacity to detect and investigate rule violations and (ii) its compliance staff and resources. The CFTC also identified three deficiencies relating to Nadex’s trade practice investigations. The review found that Nadex was deficient with respect to its compliance with CFTC regulation 38.158, which requires an exchange to conduct an investigation upon the discovery or receipt of information indicating that a rule violation may have occurred. The cFTC also found that, in certain instances, Nadex failed to adequately investigate or document potential rule violations by its members or market makers. In addition, although Core Principle 7 (Availability of General Information) was not a focus of the review, The CFTC also identified a deficiency related to this core principle. The CFTC found that during the target period, Nadex failed to disclose relevant information regarding its market maker programs, as required by CFTC regulation 38.401(a). Nadex has since cured this deficiency pursuant to a rule filing effective July 2017. The CFTC’s full review of Nadex can be found here (pdf). CFTC Regulated Binary Options Brokers. The CFTC was founded in 1974 as a direct result of the Commodity Futures Trading Commission Act approved by the US Congress during that year. Prior to this event, commodity trading was controlled by minimum regulations. An attempt was made to introduce such laws during the 1920s but these efforts were mainly centered about agricultural products, such as corn and wheat, etc. However, over the following decades the financial markets grew rapidly in size and diversification producing entire new ranges of involved and assorted trading products, such as foreign stock indices and currencies. To directly address this ever-evolving situation, the USA introduced new regulations and laws to control commodity trading in 1974. Consequently, the CFTC was created as an independent authority with the prime task to oversee and police this important market sector. The main mission of this agency was to safeguard the interests of Americans from dishonest practices and scams that can arise from commodity trading. As such, the CFTC strove to maintain an option and futures market that was financially stable, competitive and totally transparent with no hidden costly surprises for the unwary. Essentially, the CFTC was empowered with the authority to protect the general public from fraudulent pursuits. The Commission has been structured about six primary operating units that were classified into two principal sub-groups. 2. How the CFTC functions. The first one has the responsibility for tracking and enforcing laws and regulations within the futures and option financial markets. This sub-group was centered on three important units, which were the Enforcement Division, the Market Oversight Division and the Clearing and Intermediary Division. The second sub-group dealt with overall leadership and legal affairs and also consisted of three primary units. These were the Executive Director Office General Counsel Office and the Chief Economist Office. Today, the CFTC has evolved into an operational entity which primarily is intent on guaranteeing the economic stability of the futures trading sector by maintaining and enhancing its effectiveness and viability. The agency also concentrates on the prevention of abusive or manipulating malpractices by enforcing financial honesty and fair price quotations. Essentially, the CFTC effectively supervises the futures market with the prime mission of maintaining a healthy environment harboring minimum risk exposure for its all trading participants. The main tasks of the CFTC nowadays are to regulate futures including binary options and Forex in order to protect traders form frauds and unscrupulous brokers. 3. Binary Options Brokers Regulated by the CFTC. The only binary options organization boosting this coveted status so far is NADEX. NADEX was launched during 2010 and is the acronym for North American Derivatives Exchange. The firm is located in Chicago, USA and all its key details are clearly displayed on its well-presented website. NADEX is fully regulated by the CFTC. An impressive trading platform is supported which is 100% web-based. In order to trade binary option, you merely have to register an account with NADEX make an initial deposit and then log onto the platform using your new username and password. You can then start executing positions directly on the Exchange. A very accurate price-feed is displayed that is constantly updated in real-time. You can open binary options using assets based on Forex, stocks, commodities and indices. You can also locate many exciting and useful tools by visiting the NADEX website. For example, you will be able to find high quality educational material explaining all the important aspects of binary options trading. NADEX also supports excellent demo facilities. You can even customize the trading platform by modifying its layout to suit your personal preferences. In summary, NADEX provides a professional and high quality environment for trading binary options that is regulated by the CFTC. Choosing a Binary Options Broker. Choosing a binary options broker can sometimes seem like an overwhelming task, but equipped with the information above and the insights on what separates the good from the bad, you can make an informed choice and narrow the selection down to a manageable number of brokers. #1 Use a Regulated Broker. If traders could look beyond the glamorous sales pages and take action on this point, majority of the horror stories in the binary options market would have been prevented at this point. It is imperative that traders choose a regulated broker. Regulation ensures a number of things a) Ascertain the identity of the broker and make sure that the broker in question is qualified to be a broker and not some criminal just out of jail and looking for a quick buck. b) Make sure they have an address that can be pin-pointed, located and known to all and sundry, and to ensure that they are not fly-by-night operators. c) Ensure segregation of traders’ funds. You do not want brokers getting access to your money to pay for their CEO’s wife’s shopping expenses. d) Ensure that their market conduct is transparent. e) Ensure that you are paid your money when due and without delay. There are always more losers than winners in the binary options market, so brokers doing genuine business have no excuse not to pay you from segregated funds. Many brokers in the binary options market are unregulated. 90% of binary options brokers operate from Cyprus, and after some complaints of unscrupulous practices by brokers, the Cyprus Securities and Exchange Commission (CySEC) has finally decided to take action. All binary options brokers have been given till the end of the year to obtain licenses or shut down. This means that by 2013, there is no reason to be using a so-called Cyprus-based broker whose regulation status is indeterminate. Who Regulates Binary Options Trading in Different Countries? #2 Pricing Transparency. Some brokers are guilty of the following price manipulations 1) Assets not being available for trading when there is increased volatility. 2) Trades at breakeven point pushed into loss territory with a few moments to trade expiry. 3) Price of bets or payouts being adjusted unnecessarily. To avoid these problems, deal with a broker who provides Level II pricing so you really know what is going on in the market. #3 Ease of Transactions. Unless you live in a country under a global financial blacklist, there is very little motivation to still rely on the time-wasting bank wires for transacting with a binary options broker. There are many of them who now offer instant deposits and withdrawals using a variety of methods such as credit cards, e-wallets and PayPal. Try and get a broker that makes deposits and withdrawals a breeze. #4 Choice of Contract Types. Use brokers who are not restrictive in their asset offering or in the contract types offered for trading. A trader should be able to have the power to choose, and those powers are eroded when the asset listing or contract trade types are restrictive. When brokers provide several trade types to choose from, it is easier for the trader to practice all and then make a pick of the preferred assetstrade type. It is simply not up to it for a broker to leave an email unanswered for a whole week, but that is what a broker whom we shall not mention here actually did to one of our people who was testing one of their bonus services. Choose a broker who has at least an 18 hour work day for their customer service department so that they can be available to answer your inquiries. These are some of the key points to look out for when choosing a binary options broker in today’s markets.