Despite its rising popularity, only a portion of the binary options market is subjected to the oversight of regulatory bodies. Some trading platforms are listed on registered exchanges; however, some still need to comply with applicable regulatory requirements. The number of Internet-based platforms has surged in recent years and the increasing volume in binary options trades necessitates a growing need for system providers to be under regulation.
SpotOption Officially Regulated by CySEC
The Cyprus Securities and Exchange Commission (CySec) has been vigilant in calling out to binary brokers to regulate the binary options industry.Of the many system providers providing binary trading platform services, SpotOption is the very first to act on the call to be officially licensed by CySec. Having done so, all of their white labels will immediately become regulated as well. This is great news to binary traders as this will dispel the cloud of doubt that permeates the industry, which emanated from fraudulent activities and scams involving binary brokers recently.
For a relatively short time, SpotOption has had the distinction as being the only system provider in the binary options industry to be regulated by CySec.
Being regulated is a tough act to follow. SpotOption has now elevated its status from not only being a software system provider, but also as an investment services financial institution as well. SpotOption is now a Cyprus Investment Firm (CIF). As a result of obtaining the license, SpotOption clients are now protected lawfully and can trade in a safer trading environment, which are done in full compliance of CySec rules and regulations.
Tradologic Now Also Regulated
Financial markets can now breathe easily as more firms are acting on the demand for a licensed and regulated industry. Following the unprecedented steps taken by SpotOption, another binary options system provider has upgraded its services to meet the various criteria set by CySec to be granted full regulation.
Tradologic is a leading platform developer and its technology are used by a variety of binary brokers that will also be eligible to apply for licensing to different regulatory agencies, a list that includes the Financial Services Authority (FSA), Japanese FSA and the Belize International Financial Services Commission (IFSC).
Acquiring a license in regulated jurisdictions means that Tradologic’s trading solutions has surpassed regulatory evaluation and has proven itself to be compatible with the rules and regulations of international online trading. With a large number of brokers using the Tradologic software, there are equally a large number of traders who are trading in a safe and secure environment.
Of the system providers in binary options, Techfinancials is yet to subject its operations under CySec regulation. Although this remains to be so, several binary options brokers that uses the Techfinancials system has already obtained the much-coveted licensing from CySec.
Although there are still brokers who are operating without regulation, many platforms has followed the recent trend of filing applications to operate legally under a transparent and regulated system.