ZoomTrader Becomes Regulated by the Cyprus Securities and Exchange Commission
29th of January 2015
Binary options broker ZoomTrader announced that it became regulated by the Cyprus Securities and Exchanges Commission. This makes ZoomTrader the newest binary options broker to join the list of legal brokers.
Renowned binary options company ZoomTrader revealed today that it just managed to acquire a new binary options license in Cyprus. The license means that the broker has been evaluated and found to offer safe and fair online trading services.
The new license also means additional trader protection measures and security guarantees. For example, according to European Union regulations the broker will have to keep trader deposits in a separate bank account from active funds the company uses in its day-to-day expenses.
Funds are also being held outside of Cyprus in order to add an additional level of security. Likewise, according to European Union trading laws the broker will have to guarantee an up to $20,000 refund to all traders in case the company goes bankrupt.
What this means is that if the company will ever go bankrupt and you have assets still deposited you will get them back up to a maximum limit of $20,000. This is the reason why trader deposits will have to be kept separate from active funds.
The announcement that the broker finally became regulated and licensed coincides with the broker implementing a new website interface that now works on mobile devices as well and contains several new features and tools too.
During 2014 a large number of legit binary options brokers announced that they would apply for binary options licenses. This was in order to comply with European Union regulations regarding financial trading and investing.
Cyprus was the first European country to offer licenses to binary brokers. Initially, the regulations required by CySEC (the Cyprus Securities and Exchange Commission) were very lax however around 2013 and 2014 they were brought into conformity with general European Union regulations.
At this moment a binary options license issued by CySEC offers the same security and safety measures as licenses issued by other authorities such as the Financial Conduct Authority (FCA) of the United Kingdom.
ZoomTrader joins a long list of binary options brokers that have a valid license in Europe such as OneTwoTrade, 24Option, Stockpair, AnyOption, TopOption and several others. It’s expected that many other brokers would join this list in 2015.
While Europe has embraced regulation and legalization, unfortunately the United States is still practicing protectionism due to the lobbying activities of large trading exchanges. In the US, European binary brokers are at this moment not allowed to apply for a license in order to protect the business interests of currently licensed US corporations.
It’s very hard to say if the US will finally change its approach and allow other companies to receive licenses or maintain the monopoly of the currently dominating binary options exchange.