Is binary option legal? As long as the broker is regulated and offering transparent terms, we can say the answer is yes. Many countries recognize it as a legitimate investment instrument governed by their respective regulatory agencies. This is regulated in many countries including:
- The United States
- The United Kingdom
- New Zealand
Over the years, binary option trading has begun to be popular among the people. One of the reasons behind this is its a simple trading platform and easily accessible to investors through online trading platforms. When its getting popular, the common question which faced by the new users is: Is binary option legal?
In some countries, a regulated broker is required legally. In some, it is the desired preference, which encourages many brokers to process their licenses and pass the requirements. Knowing your country’s specific set of regulations is essential as it varies accordingly depending on the country and its jurisdictions.
Various countries and jurisdictions regulate trading binary options. In these countries, brokers are obliged to apply for a trading license to offer their services. How about countries that do not regulate binary options? While not regulated, technically, it is legal to trade binary options—unless there’s a law that specifically states it’s not allowed. Binary options are not illegal in countries with unregulated markets since there’s no law that neither allows nor prohibits it. With that in mind, it’s important to check the regulations in your country carefully before proceeding to be aware of your rights and your broker’s duties.