Regulated in some countries with the licenses such as CYSEC, CFTC and ASIC, binary options exist due to the transparency of the prices and also because it is regulated through Nadex. But what arises in the minds of thousands of people is that whether using binary options or digital options trading style is considered legal or just fraud. We can affirm that yes, it is legal and in fact, has been around for many years now. It is true that in the past, there were no regulations controlling the flow of this trading style, and over many years, special commissions have been founded in order to regulate binary options trade.
Binary options, risky but profitable
Using binary options is indeed risky and most people avoid it, especially those who are inexperienced and have a lack of information or are not totally confident about their knowledge regarding international trade prices and rates, which is extremely relevant in order to profit from binary options. However, the simplicity of binary options is becoming more and more noticeable among common people who could not even dream of entering the world of trades and now are able to fulfill their wishes through binary options.
Binary options not available in all countries
We need to point out that binary options are not available in all countries, as different states have different definitions, legal definitions, for the same industry. Each and every country have their proper restrictions and laws, and it is up to the trader realize where it is possible to trade or not.
Many financial regulators that monitor digital options
Outside the US, countries in Europe, as well as Asia, have in fact taken serious steps to develop regulations on fixed return contracts and treat them as financial securities. The leading regulatory body is CySEC, given the number of companies operating out of Cyprus. However, when it comes to digital options in the US, the CFTC and SEC have stepped in and truly asserted their authority over US security markets.
Regulators are representing safety and fairness among brokerage companies
There are many reasons to prove why regulation necessary. Some of them are: to ensure real-time transmission of data and also safety and fairness, as well as to qualify the competence of a broker’s management team. Also, it needs to make sure that brokers comply with all existing laws and have a fair conflict resolution procedure in place and that they follow it.