It can be hard to know which binary options brokers will be the best fit for your specific needs, especially when you trade from the United States. One of the concerns that many traders tend to have is whether or not a given provider is considered to be one of the legitimate binary options brokers.
Most of the brokers used by traders in the United States are not regulated under either the SEC or the CFTC. In most cases, brokers within the European Union are regulated under the appropriate regulatory body, CySEC, which stands for Cyprus Securities and Exchange Commission. This commission is different from the regulatory bodies in the US, such as the CFTC, which requires extensive controls on investments.
This does not mean that traders in the United States can’t find legitimate binary options brokers that serve investors within their country. However, it is important to note that even legitimate binary options brokers will not be regulated by the appropriate financial body for U.S. traders, which means that any funds that are deposited into accounts with these services will not be protected in the same ways.
When financial difficulties hit the market in Cyprus back in 2013, a number of investors in the binary options market grew concerned in regard to the safety and security of their investments. This has led a number of traders to limit their trades to brokerage firms that are regulated within their own country. For U.S. traders, however, this is not always an option. While it may be more difficult to learn about legitimate binary options brokers in the U.S., it is definitely possible to find a brokerage service that will suit your needs without leaving your funds at risk.
In order to try out a new brokerage service and ensure that you’ll be able to withdraw your funds when the time comes, it can be helpful to limit the amount that you deposit with a company until you have a chance to build trust in their services and have been able to successfully take funds back out, as well.
You can also do independent research into the reputation of a brokerage service to find out how other clients have been able to work with that company and to discover any flaws or limitations to a service. Forums for United States traders can be a helpful place to start, if you are new to the market.