One of the biggest issues concerning binary options brokers is where to get regulated (if at all) and whether they’d like to fall under the gaming or financial license.
Binary options are barely regulated worldwide and it’ll take few more years for most regulators to catch up. Binaries are regulated in the US (Nadex is the only authorized exchange), Japan requires brokers to register, in Australia Market Punter (a label of Trade Smarter) chose to be registered (it’s not clear if it had to). Elsewhere regulation is a grey area and many regulators still don’t want to deal with this marginal market. CySec for instance says this product doesn’t fall under its jurisdiction: http://www.cysec.gov.cy/licence_members_faq_en.aspx.
Those brokers that do choose to get regulated (there are just a few of them) do that just for one reason – ability to state that they are regulated and thus perhaps improve their positioning in the eyes of potential clients. Whether Binary Options is a gaming or a financial instrument is a matter for a different discussion but it’s easier and cheaper (~EUR 40-100k) to get a gaming license in Malta than put 1m EUR and spend months on months waiting to be financially regulated elsewhere.
Binary Options Brokerage, OneTwoTrade was granted regulation for their online operation
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SpotOption Ltd. announces the license obtainment of their successful white label, http://www.onetwotrade.com. Since the Options Clearing Corporation has legalized the trading of Binary Options on the open market, online operators have enjoyed the popularity and success of the business. As Binary Options is such a simple form of forex, with the trader only needing to predict if the price of an asset will rise or fall by a certain expiry time, this industry has also been classified as “financial games”. SpotOption whitelabel, http://www.onetwotrade.com, have officially received a license from the Lotteries and Gaming Authority (LGA), and traders on their site can trade their financial game with the backing of the Maltese organization responsible for the governance of all forms of gaming.
In many countries, there is no license required to run a Binary Options website. However, as http://www.onetwotrade.com did obtain this backing, they will have the advantage of attracting and engaging more players, through the reassurance of supplying a secured and regulated product.
All of SpotOption’s labels are reliable and secure websites. Traders can enjoy extremely high payouts, with minimal risk, in a light yet exciting environment. The popularity of Binary Options is due to the attractiveness of the model, but the popularity of SpotOption’s leading brands are due to the trustworthy reputation they have established. This has been done by providing traders with timely payouts, secured payments, and simply a dependable platform. Powered by the SpotOption solution, the labels will remain market leaders as they are constantly provided with new features and trends, like ProTrader (enlarged graph trading), One-Touch (for returns of up to 500%, and when markets are closed), 60 Seconds (for super fast expiries), and profitable features such as Double Up, Roll-over, and smartphone applications that allow trading on-the-go.
“As Binary Options is still a relatively virgin market, operators have been enjoying lenient regulations “, says Pini Peter, founder of SpotOption, Ltd. “OneTwoTrade wanted to go the extra mile to reassure their traders, and that’s a respectable decision. We choose our partners carefully, and those that are chosen are those that will uphold their reputation as well as ours. We’ll keep doing our utmost to ensure the success of their brand.”