One of the key aspects of binary options regulation is funds insurance. Maybe you don’t know it, but with a regulated broker your money is safe.
As we said earlier, most of the binary options brokers are based on Cyprus, where the regulatory body is the Cyprus Securities and Exchange Commission (CySec). Every broker on Cyprus has to be regulated, which automatically also means insured.
The insurance comes from the Investor Compensation Fund for Customers of Cypriot Investment Firms and covers traders funds up to 20000 Euros.
So you really don’t have to worry, your money is secure with a regulated broker. Even if the broker goes bankrupt or whatever, the Compensation fund will take over and give you back what you had on your trading account.
The same applies to almost every EU country, so if you choose a binary options broker regulated within the EU, your funds will be safe.
That is why brokers that moved away from Cyprus are not recommendable. Often they try to hide from regulation, which is already not a good sign in itself, moreover you don’t have this insurance and security, and probably nobody will help you if the broker closes doors and disappears.