History of Regulated Online Binary Options Trading
True pioneers of the growing online financial betting and online binary options trading industry, MarketsWorld has led the way forward by choosing to become appropriately licensed and regulated to operate prior to our online binary options trading platform being launched. MarketsWorld sought its license from the Isle of Man GSC, one of the most trusted regulators in the world with its proven track record for reliability in online licensing and regulation. Innovators of the online binary options trading industry, MarketsWorld created and developed our own custom built platform for binary options online trading.
Simultaneously, MarketsWorld was taking the necessary steps to get a license to operate our online binary options trading platform in the Isle of Man, Great Britain. Only after being approved and properly licensed, MarketsWorld then proceeded with the formal launch of our regulated online binary options trading platform in 2011. By being the first licensed and regulated binary options trading platform, MarketsWorld raised the bar for the propriety and regulation of the online binary options trading industry, which binary options traders themselves have come to demand so that proper governance, protection, and fair treatment is assured for online binary options traders.
Although more difficult to achieve, MarketsWorld sought its license in the Isle of Man, Great Britain, not a Caribbean island or Cyprus, as Great Britain is more highly respected for its governance and rule of law. With our custom built binary options online trading platform, MarketsWorld can adapt to the needs of our customers. At the same time MarketsWorld has consistently offered our regulated binary options trading at the industry's highest and best payout rates of up to 90% per trade with no hidden fees, spreads or commissions!
What Are the History and Origins of Regulated Online Binary Options Trading?
Predating the internet, exchange traded binary options have been available for many years. The word "binary" denotes the all or nothing, win or lose nature of every binary options contract which have two possible outcomes: either Win (In-The-Money) or Lose (Out-Of-The-Money). Like all options contracts, a higher/call or lower/put option is purchased and if the option contract expires In-The-Money/ITM then the payout on the option occurs from the seller of the binary option contract to the buyer for a set, all or nothing return. The original binary options contracts were only available over-the-counter (OTC) at the stock exchange. The binary options contracts were sold on the stock exchange floor to the buyer directly from the issuer. These original binary options contracts were considered exotic instruments having virtually no liquidity between issuance and expiration. In their early beginnings however there was next to no regulation and no watchdog overseeing these OTC transactions so it was very much as the saying goes, "buyer beware".
Regulation of OTC binary options was only a matter of time and the Chicago Board Options Exchange (CBOE) which got created in 1973 soon began regulating OTC binary options trades at their exchange. The growing need for regulation, monitoring, and controls led to the Options Clearing Corporation (OCC) being created in the United States. The OCC began to lay down rules to deal specifically with regulating binary options, ensuring that every seller of binary options is satisfactorily monitored. As a result these binary options dealers today must maintain a license in order to sell exchange traded binary options over the counter. If guilty of violating the rules, the binary options dealers can be suspended for a length of time or can even have their license to issue exchange traded binary options revoked.
Another major step forward in regulation of binary options occurred more recently in 2007 when the OCC proposed a rule change and in 2008 the United States Securities Exchange Commission (SEC) approved the listing of cash-or-nothing binary options, allowing for exchange traded binary options on major markets, thereby making them much more mainstream. The same year, both the New York Stock Exchange's American Exchange (NYSE Amex) and the CBOE launched cash-or-nothing binary options and called them Fixed Returns Options or FROs. These FROs are exchange traded binary options with continuous quotations that allow the investor to buy or sell at a fixed price.
Within a short time afterwards, internet based binary options brokers began to operate. Unlike exchange trading, online binary options trading is a contract between the company and the buyer of the binary option, not an option bought and sold between investors through a central exchange. Surprisingly many of the online binary options companies which began operations in recent years chose to do so without becoming properly licensed and regulated in advance of launching their trading platforms so that these companies could effectively operate outside the scope of governance and without any rules or appropriate customer protections.
By contrast, MarketsWorld holding a proper license from a highly regarded British Regulator enables us to offer our reliable, licensed and regulated online binary options trading guaranteeing online traders of binary options the security of their earnings while at the same time assuring online traders get reliable and trustworthy access to the exciting world of online binary options trading. For more information of our licensing and regulatory requirements please also visit our About Us page. MarketsWorld bases all our operations on the the underlying principles of total trust, fairness, and integrity, offering the lowest minimum deposits and investment stakes per trade in the online trading and binary options industry coupled with our promise of the highest profit payout returns on ITM trades! Being the first regulated binary options platform, MarketsWorld getting regulated before launching the trading platform, our proven track record and commitment to ongoing fair play and fair treatment of our customers is what continues to set MarketsWorld apart from the field.
How Does Online Binary Options Trading Differ From Exchange Based Options Trading?
The United States Commodity Futures Trading Commission (CFTC) monitors and controls options exchanges in the USA. Online binary options trading fundamentally differs from an exchange based operation in that an options exchange is a central marketplace where buyers and sellers come together to trade against each other. The options exchange maintains supply and demand, facilitates liquidity, mitigates all credit risk concerning the default of one party in the transaction, and sets the current market price.
Online binary options trading platforms are not a central exchange between investors. Online binary options trading platforms provide fixed odds returns through binary options trading on the price movements of the financial markets going up or down. With an online binary option trading platform, every trade purchased is against the company itself, unlike the trading which takes place between individual investors through a central exchange and comes under the jurisdiction of the CFTC. This is why you have to be sure you can trust both the company operating the platform and the regulator supervising the company, if any.
MarketsWorld is licensed and regulated in the highly respected and trusted jurisdiction of the Isle of Man, Great Britain to offer fixed returns binary options, as opposed to carrying a CFTC license as would be required to operate an options exchange. There are pros and cons with both systems however the advantages for online trading of binary options with their fixed odds returns over trading against other investors through a central exchange are as follows.
Unlike exchange based options trading, the binary options trades purchased from MarketsWorld are not transferrable so you do not need to worry about deciding when to sell the binary option trade; whereas with exchange traded options, you would actually own an option which you would need to sell where the value of your option would be constantly changing based on the underlying asset's price, and you would have to decide the right moment to close out or sell the option adding difficulty and complexity.
The kind of online binary options trading offered by MarketsWorld is becoming more popular due to its being so much more simple and straightforward because the online investor specifically does not have to worry about selling or closing out his or her trade, you either win or lose the fixed amount at the trade's expiry time, providing known certainty of risk and reward from the moment the trade is purchased. You never stand to lose more than the investment stakes allotted to a given binary trade.
Providing a more straightforward and easier method to trade with greater certainty, the online binary investor simply chooses the trade's expiry at the time of buying the binary option trade, from five minutes away up to the end of the day, you don't have to worry about when to sell the option over an options exchange. Online binary options trading is therefore highly flexible while assuring certainty. Within a few minutes you can make up to 90% profit on your trade. You can operate a trading account with as little as $10. You set the trade investment stakes from $1 up to $1,000
Intuitive and easy to use, MarketsWorld sells directly to you a binary options trade contract whereby you get the right to receive the fixed return if the trade contract expires ITM (in-the-money), meaning that you very simply anticipated the underlying asset's price direction, either higher or lower. The payout is all or nothing so again the total exposure to risk is limited to your trade investment stakes.
With MarketsWorld Licensed and Regulated Online Binary Options Trading it is possible to trade indices, forex currencies, stocks, and commodities all in one place, without any software download or complicated forms to fill. Trading binary options on an index such as the Dow Jones is comparable to exchange traded funds or ETFs which have also become very popular and widely used over the course of the last decade, where the investor is taking a position or speculation on whether the stock index, such as the Dow Jones, as a whole will rise of fall without investing or speculating on the underlying companies that make up the index.
By contrast to the simplicity of trading online binary options, exchange based options contracts, bought and sold between investors over a centralized options exchange under the purview of the CFTC, may be sold anytime prior to expiry, their value is constantly changing so that constant attention by the investor is necessary to decide an appropriate time to sell the option contract. Furthermore, exchange traded binary options such as ETFs will require a broker which will of course result in brokerage fees and commissions, cutting in to the investor's overall profit margins, particularly if you are making numerous trades for smaller stakes. With MarketsWorld online binary options trading you just predict whether the underlying asset's value will be up or down at the trade's expiry.
Due to their simplicity, trading online binary options has made financial market speculation more accessible and because there are no brokers or middlemen involved you don't get charged fees or commissions on your trades. Experienced and beginner traders alike now enjoy the rewards and advantages of licensed and regulated binary options trading. MarketsWorld, proudly licensed in Great Britain since day one, also pays out at the highest rates of return in the online binary options trading industry up to 90% revenue per ITM trade so that our customers earn more profit! Traders with MarketsWorld can speculate on the movements of the financial markets with total safety and reliability for the fairness of the real time price quotes, fair returns on their successful ITM trades, and the safety and security of their deposits and earnings. To read more about the specific benefits of trading with MarketsWorld please also visit this page: Why Trade Binary Options?
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