When trading binary options, you will not purchase and own any commodity or asset; you would actually bet on whether the derivative (underlying asset) will gain or lose on value during a set period of time.
Until 2008 there was no regulation of Binary Options Trading, which is now under regulation by the U.S.
One can argue if the rules and regulations are adequate and up to par with European or US standards.
Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) is a government agency that oversees the regulation of futures, options and swaps trading on regulated U.S. That changed rapidly when internet marketers flooded the web with products that, supposedly, will make you a million dollars in profits by trading binary option.
Unscrupulous internet marketers flooded the web with misleading information and products, giving the whole industry a bad reputation. The island of Cyprus is a full member of the European Union (EU) and was the first country to regulate binary option trading.
In fact, they will warn you that this kind of trading is risky and you may lose your money. Scouring the internet for more than a week, reading reviews and opinions, hundreds of complaints and reports of wrong doings, I had to make a decision.
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