Why Are There So Many Binary Options Brokers?
Binary options trading has since 2008 become one of the most popular trading mediums on the internet. The main reason for this is that it is both relatively simple, and can provide immense profits if done properly.
While binary options trading was officially approved by the CBOE in 2008, there has not since been any progress in regulating it all over the world. Since there is no real trade of stocks or company ownership, there is no reason for the brokers to become officially approved at the major stock exchanges like NASDAQ and NYSE. This also means that they are not subject to SEC regulations.
Because of this lack of regulation, it is very easy to open a binary opitons broker anywhere in the world. Brokers usually choose either Cyprus or the British Virgin Islands because these companies are considered to be tax havens and all profits can be kept within the company, since it is an online business and therefore all of the transactions and trading can be done from there.
It is important therefore to go to a respective binary options broker and read various testings like the Anyoption test. This will give you a better idea of which brokers are good and can be trusted and which should be avoided at all costs. This is the very least you should do before committing to a broker with such a lack in proper regulations.
While binary options trading was officially approved by the CBOE in 2008, there has not since been any progress in regulating it all over the world. Since there is no real trade of stocks or company ownership, there is no reason for the brokers to become officially approved at the major stock exchanges like NASDAQ and NYSE. This also means that they are not subject to SEC regulations.
Because of this lack of regulation, it is very easy to open a binary opitons broker anywhere in the world. Brokers usually choose either Cyprus or the British Virgin Islands because these companies are considered to be tax havens and all profits can be kept within the company, since it is an online business and therefore all of the transactions and trading can be done from there.
It is important therefore to go to a respective binary options broker and read various testings like the Anyoption test. This will give you a better idea of which brokers are good and can be trusted and which should be avoided at all costs. This is the very least you should do before committing to a broker with such a lack in proper regulations.