This is completely true, but investors must know 8212 and this is where financial regulators are starting to listen 8212 that with high rewards come insanely high risks. If the best traders on wall street could make 85 returns with a single 30 second trade, wouldnt they Of course they would. Why should you as a single investor think you can beat the ups and downs of the market consistently Please note, this is not to say dont trade binary, but do so very carefully, and as a small part of your overall investment strategy.This site will also touch on news from regulatory agencies on the legality of binary options 8212 a news feed of legal. I know, I know, legal sounds boring, but if you want to play in the high risk high reward pool, youd better know who is staying within the law, and who is breaking it, so you dont pay the price and lose your money to unscrupulous brokers.The modern binary options business was created in 2008. Since then, the industry has evolved significantly. One of the most important developments in the binary options industry is the fact that a lot of countries have in the recent past decided to officially regulate binary options.The regulation of the binary options market resulted in a safe trading environment for traders. Due to laws governing the options trading market, brokers are obliged to only offer safe, fair and legitimate services to their traders. If brokers break these regulations, then they will face heavy fines and even license suspensions, which is basically a kiss of death to their businesses.In this article Ill be talking about everything related to binary options regulation. Below youll find out why the options trading market is regulated and how this will protect you as a trader. In case youre looking to find some regulated binary options brokers, you can also take a look at the broker lists presented on my site.Binary options trading is regulated in a significant number of reputable jurisdictions. A very important thing to remember here is that the fact that if binary options arent regulated in a particular country it doesnt mean that they are illegal. A lack of regulation means that the state is indifferent towards this practice (as in, you can trade because its no ones business).But as I said above, binary trading is regulated and is legal in a number of jurisdictions and countries such as the United States, the United Kingdom, Cyprus, Japan, and Malta. These countries have special agencies such as the CFTC in the US, FCA in the UK and CySEC in Cyprus that oversee the financial investing market. (Source: Wikipedia)In order for brokers to be able to operate in these countries, theyre obliged to apply for a trading license. A license will only be awarded to completely legitimate companies that exclusively offer safe and fair services. National regulators are extremely strict about supervising the online trading market because the state also generates taxes from this practice. The state can only levy taxes from legitimate businesses.In the majority of countries on the planet, binary trading is not regulated. However, as explained, this does not mean that binary options illegal. Binary options are only illegal if a country has a law that specifically says that they are. If they dont have any law of any kind related to binary trading, it means that binary options are de facto legal.You can look at this like as with collecting coins, for example. When you collect coins, you basically deal with real money transactions but the state youre living in most likely does not have a law that says that coin collecting is legal. However, the lack of a law that makes coins collecting legal does not mean that coins collecting is illegal.This is the same with binary options. Unless you are doing something illegal, such as money laundering, then its perfectly legal to engage in financial trading activities on the internet. Its only illegal to trade financial assets if there is a law that says that trading on financial assets is illegal.Living in a country where binary options arent regulated comes with no disadvantage whatsoever. Traders living in such countries just have to make sure to only register at regulated binary options brokers that received their licenses from another reputable jurisdiction such as the UK, USA or Cyprus.Brokers licensed in any of the countries that regulate binary options are forced by the law to treat traders living in other countries the same as they would treat traders from the country in which they received their binary options trading license. What this means is that traders living in unregulated markets are protected from abuses the same way traders from regulated markets, provided that they register at brokers regulated elsewhere.As explained, its imperative to only register and trade at brokers that are regulated in at least one reputable jurisdiction, even if this a different country than the one youre living in. If traders register at an unregulated binary broker, then nothing will protect them from potential fraud or abuse. Its always recommended to stay on the safe side.The regulation of online trading basically means that a lot of important countries, such as the UK and the USA, officially recognize binary options trading as a mainstream activity. This means that national governments themselves have admitted that binary trading is a legitimate business and investment possibility.Governments of countries such as the United States and the United Kingdom would never legalize a fraudulent business model and would most definitely never offer financial service provider licenses to binary options brokers. In short, binary options regulation proves that trading binary options is a legitimate form of investment.Experts believe that in the future many more countries will decide to regulate binaries.