Binary options are one of the newest trends in the world of online trading in Germany. They are becoming more and more popular thanks to their simplicity and the high rewards they bring, and the latest figures show that binary markets are currently the fastest growing markets in the world. However, the world of binary trading isn’t perfect yet.
As a trader, you should know that there are many binary brokers who are still not regulated, because they failed to meet the requirements of the regulatory body or because they are still waiting for approval. Although it is strongly recommended to use the services of a regulated binary broker, there are some cases in which an unregulated one can be the better choice for you.
One of the countries that have the most developed binary market is Germany. The country with the best economy in Europe was one of the first to adopt binary trading and currently there are hundreds of binary brokers operating there. The activity of these companies is monitored and regulated by the Federal Financial Supervisory Authority (BaFin).
If you are new to the world of trading, then you probably don’t know the difference between regulated and unregulated brokers. The easiest way to describe the difference is by using the word ‘license’. Regulated brokers meet certain requirements and receive a licensed to perform trading activities.
Licensed brokers are responsible for the money of their clients, so there is no danger that they’ll go bankrupt and the money of their customers will be lost. In the meantime, unregulated brokers can still work well, but you’ll never be absolutely sure that your money is safe. If an unlicensed broker goes bankrupt, then there is nothing that the German government can do about the money you and other customers lost.
If you are about to choose a German binary broker, then there are some important things you should remember. Regulated brokers aren’t always the better choice. The easiest way to make the right choice is to read lots of customer reviews – in many cases unregulated brokers are better than regulated ones.
Germany is one of the few countries that offer near-perfect conditions for binary trading, so the local market’s popularity shouldn’t come as a surprise. Many traders prefer to trust German-regulated binary brokers, because of the flawless reputation of the local companies, and the fact that they offer some of the best promotions in the binary market.