One of the biggest brokers in the binary options industry, OptionFair recently obtained the CIF license of CySEC (Cyprus Securities and Exchange Commission), the regulatory agency of financial services in Cyprus, in Europe, making this broker one of the few that is properly regulated in this sector.
The license, which has just been successfully granted to the firm, it was actually awarded to B.O. TradeFinancials Ltd, the company which owns OptionFair. TradeFinancials Ltd also owns TechFinancials, a provider of trading platforms for a wide range of binary options brokers. In fact, today OptionFair offers this application to its customers as the main trading platform.
OptionFair, which is located in Cyprus, has additional offices in the UK, Italy, Spain, Germany, Dubai and France. Today is one of the most important brokers in the sector with a presence focused primarily in Europe, thus not surprising that the firm has decided to obtain the license of CySEC.
Major implications of CySEC license
As a result of having been licensed by CySEC, OptionFair is now required by regulation to provide customers with complete transparency in the management of their funds all the time, which is very important when you consider the recent case of the closure of iOption. The brokers that are regulated by agencies like CySEC must be characterized by committing to principles such as honesty, transparency and security, so that they can ensure that their customers have a completely safe management of their money when they deposit funds in these companies.
Furthermore, customers' funds must be kept in segregated accounts that are separate from the broker's own funds. This is because in the event that OptionFair face a liquidation, all client funds are protected.
While TechFinancials is one of the few binary options platforms that has been licensed by CySEC, by no means is the only or the first. SpotOption, one of the largest solution providers in the field of binary options trading, obtained the CIF license of CySEC in May 2012.
Binary Options: One of the fastest growing financial instruments
The binary options sector receives growing international interest since it is an innovative, simple and interesting way to speculate in financial markets and make money online. Due to the possibility of obtaining the CySEC license and operate with low corporate tax rates, many binary options brokers (and Forex brokers) are moving in mass to the island to set up their European operations.
In fact, many non-Japanese binary options brokers are based in Cyprus, in a desperate attempt to get a license after CySEC decided to begin regulating brokers is this sector.