Is Options Trading Legit?
Everyone, for sure, once has wondered on question "Is options trading legit?". Every broker is operating under worldwide jurisdiction, meaning that its services are regulated by the country you are residing in. Many respectable companies have been licensed and regulated by CySEC, for instance, meaning that their activities are monitored and they provide legit options with trustworthiness in the European Union. Every country has its own regulatory bodies, so, please, check with your broker if they cooperate with them and if they provide legit options.
The question you may have in your mind is “why does it matter?”. The reason is the safety of your funds and legality of your actions. For instance, in the USA options are usually hard to license, so very few options brokers actually provide legit options services there. It is mostly due to the complex nature of various norms and laws, but before depositing you should always check if your financial markets company provides regulated options trading in your area to avoid issue with withdrawing your profits.
Besides, all of your gains are taxable. And tax-avoidance can result in court hearings and fines. So as with any other financial operations alike to Forex and stock market, please, advise your tax-man on the documents you need to provide to your government.
It is always important to read the fine print on the options brokers webpage, as some of them are just starting out and are not regulated options brokers at all. So if you deal with them, disregarding their lucrative bonuses and other perks, you may risk not ever seeing your money again if the company goes bust. So it is reasonable to trade with well-established firms, which you can find on our website.
Privacy issues are also of essence. It is vital that your personal data is not forwarded to third-parties, as you may receive loads of spam. Most importantly, every broker should have SSL encryption to secure your credit card details. It is usually mentioned on the bottom of the front page. And if such protection is not offered, I would highly advise you to skip this firm and move on to a more respectable one.
Mind that all sites collect cookies on your computer in order to confirm that you are their client and to get to know more about your options trading preferences. If you are feeling uneasy because of this, feel free to use incognito option in your browser.
Password protection is also something that really matters both for non regulated and regulated options trading. So a complex one may save you from malicious online attacks and save your money in the long run. If you suspect of any unauthorized activities you should immediately contact customer support team to investigate.
In conclusion of this "Is options trading legit?" article, always research your chosen brokerage company beforehand. It may save you a lot of trouble later on, as you are here in business of making money. All the best legally abiding and regulated options brokers can be found on our website under Find a Broker tab for a detailed analysis. Hope we have answered on this "Is options trading legit" question. And if you need to decide between several firms, please, have a look at Compare Broker section, where you will find the most important legal issues being laid out in simple terms.