Despite the fact that licensing is not a mandatory process for brokerage activities in most countries, having one will be a huge plus for any company. The license confirms that the binary options broker intends to work at least efficiently and is committed to long-term cooperation with clients. Broker Pocket Option is no exception to the above and is licensed to provide services in the financial sector.
Pocket Option Binary Options Broker License
The PocketOption broker received a license at the end of 2017. The regulator in this case was the commercial organization TsROFR . Each licensed broker is issued a special license, which confirms the regulation of this company:
| TsROFR No. TSRF RU 0395 AA Vv0141 |
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It is worth noting that this regulator does not issue licenses to everyone. To obtain permission to operate, you need to provide a lot of documents, pay commission fees, and also deposit $20,000 into an independent regulator account, which in the future will serve as insurance payments for traders who suffer from failure to fulfill obligations by the broker (if any).
Availability of a license presupposes:
- Company stability.
- Providing quality services.
- Insurance against major losses for the company's clients.
The loss of a license is always fraught with an outflow of traders for each broker, as well as a simple license suspension. If this happens, then most likely the company either stopped providing services or violated the rules. You can always find out about such points on the official website of the regulator:
What is CROFR and what functions does it perform?
CROFR is a commercial organization that aims to secure the ability of traders to carry out trading operations in financial markets.
This regulator issues licenses not only to binary options brokers, but also to Forex brokers. Each licensed broker is issued a certificate that confirms the fulfillment of obligations to traders. Companies that do not meet the requirements of the regulator cannot obtain a certificate, since the decision by the Regulatory Center is made after a thorough check of the broker.
Also, if disputes arise between traders and brokers, the Center for Financial Markets acts as a guarantor that affected clients can receive compensation. To do this, you will need to submit an application on the official website of the regulator, where you will describe in detail the essence of the application and provide evidence of the broker’s violation of obligations. Such an appeal usually takes from a week to a month to be considered.
Note: the maximum amount of payments that one client of the company can receive is $5,000.
What does a binary options broker license guarantee?
A licensed broker has many more advantages and credibility compared to companies that ignore regulation. Here are some of the benefits of working with a certified broker for traders:
- A compensation fund that guarantees payments if the company fails to fulfill its obligations (bankruptcy, violation of rules, etc.).
- The company's seriousness and willingness to provide quality services.
- Honest broker work.
- Company stability.
Licensing serves as a protection for traders and makes it clear that the broker is committed to long-term cooperation and provision of quality services.
It is worth noting that it is not necessary to obtain such a license, since each broker can work without it, which is a simpler option. Therefore, obtaining a license already says a lot.
On the official website of the Pocket Option broker at the very bottom of the page you can find any additional information and all documentation, as well as a link to the certificate:
Conclusion
When choosing a broker for trading, the first thing you should always pay attention to is the license. If it is not there, then it is worth thinking about whether the company is going to cease operations in the near future.
If we talk about the binary options broker Pocket Option, it becomes clear that its license guarantees protection and stable operation for traders. Any controversial issue can always be resolved with the help of a regulator, which acts as a guarantor of the quality of the company’s work.
Open an account with PocketOption
See also:
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