Licenses of brokers
Select a broker of binary options is required with a license from the regulator. The more licenses, the more reliable the broker.
Brokers licensed by CySEC
CySEC is a Securities and Exchange Commission located in Cyprus. Very well, if the broker has a European license from CySEC, this means that the broker is approved for trading in Europe. Given that in the EU more stringent laws and attitudes to financial frauds are more stringent, a broker with such a license as nobody else is suitable for us.
How can I check the availability of a brokerage license? Go to the CySEC website and find the company name in the list.
The actual company name and brand name may differ. For example, the brand “24 Option” has the real name Rodeler Limited, license number 207/13.
What is a regulator for? In the event of any problems with the broker, the trader can file a complaint with the regulator. Brokers are very afraid of complaints in CySEC – they may be deprived of a license to default. If you want to write a complaint to the CySEC regulator, use this form. You must complete it in English.
What is a regulator for? In the event of an unforeseen bankruptcy of the broker, he acts as guarantor of preserving your deposit. According to the European Law on Investment Activities and Regulated Markets of 2007, all brokerage houses with a CySEC license necessarily participate in the filling of the ICF (Investment Compensation Fund) compensation fund.
According to the law, the CySEC regulator compensates the client for up to 20,000 euros if the broker declares bankruptcy.
It is always better to use only licensed brokers and be able to write to the regulator to resolve disputes.
Capitalization of the company
To reduce the risk of losing a deposit, you need to make sure how well the company capitalizes. First of all, a good level of capitalization of the company shows the availability of licenses for the activities of regulators. Brokers for one day and fraud can not get a license, and money for it will not pay.
At the company level, you can also judge by the number of open offices and offices, the presence in different countries and cities. The more the broker is, the greater the likelihood of no problems with payments and the quality of the fulfillment of trading conditions.
Terms of trade
When choosing a broker, it is important to consider how profitable its trading conditions are. It is necessary to compare the amount of compensation for various assets. Different companies may have significant differences in compensation for the correct forecast. For example, one broker has a reward for a correct forecast for gold + 70%, another + 60%.