The financial market operates without a central exchange. This is the reason why governments and independent supervisory entities are set up around the world. These bodies are called the regulators and they act as the watchdogs for the respective markets they are set up. They make sure that licenses are offered to brokers with good reputation and have enough funds to run as a financial markets broker. Through regulation, fair and ethical business is assured. All brokers such as those in the binary options business need to operate under strict rules and standards put down by these regulators; otherwise, their operations will be termed as unlawful.
Choosing the right Binary Options Broker
Would you just give someone your hard earned money on the streets? You would not do such a foolish act. This is the reason you should be very keen with fraudulent brokers who are not regulated and hardly deliver what they claim. You will find many brokers out there who have a well developed website, a good trading platform and a responsive support system. But this can be done by anyone who has the money to put up sure infrastructure.