There are a only few binary options brokers that are actually licensed, accredited and regulated brokers. This small group of licensed brokers are also know as the best brokers in the industry, and they are naturally among the largest brokers in the world.
The simple reason why you need to be trading with a licensed broker, is due to the widespread fraud that exists in the online trading world. By trading with a licensed broker, depending on your country of residence, you are protected by the financial regulator.
For traders in the United States, the CFTC gives the license to binary option exchanges. The only place for Americans to trade binary options is at Nadex.com.
By trading at Nadex you will not encounter the high pressure sales tactics used by offshore brokers, and you will be able to withdraw your money with no hassles. Read the review of Nadex.
European brokers are mostly licensed by CySEC in Cyprus which is the largest regulated of binary option brokers in the European Union. Individual countries like Germany, Italy, and the United Kingdom have their own licensing divisions. A few of the licensed brokers below have registered their CySEC license with the financial regulators in these countries. Even though they have registered their license with BaFin or FCA, they are still only monitored by Cyprus.