The best way to do this work with brokers that are registered and licensed properly. The question then becomes, what types of license should a reliable broker have?
Different countries have various regulations to guide only IQ trading within their jurisdictions. Most online brokers today are based out of Europe, the U.S, Australia and the Middle East.
IQ Option Licenses in Europe
The Securities and Exchange Commission in Cyprus granted the first operating license to a digital options broker in 2012. Even today, the CySec license is a great indicator of whether or not a broker is reputable and properly regulated.
The CySec allows the licensed company to operate legally within any of the 27 countries within the European Union. Reports indicate that other EU states will soon follow suit. Some like Italy have already begun blocking the IPs of unregistered companies.
In the UK, digital options trading is fully licensed and regulated. To be licensed, brokers must already be operating duly licensed Forex bureaus and intend to open IQ trading divisions within them.
IQ Option Licenses in the United States
When digital options were approved for trade by the U.S Securities and Exchange Commission, they were first listed on the Chicago Board of Trade, CBOT.
Here, the practice is well-regulated but quite unaffordable to investors who are only able to trade with small amounts of money. These listed options are usually used by either banks or hedge funds in order to make their portfolios more diversified.
The Nadex is a much more affordable and uncomplicated option for traders who want to invest in the U.S market.
IQ Option Licenses in Australia
The Australian Securities and Investment Commission (ASIC) does not have any clear, defined licensing equations or requirements for digital options trading. Both local and offshore brokers can legally operate within the country.
IQ Option Licenses in other jurisdictions
digital options trading is not regulated in either Africa or the Middle East. South African traders should be aware of a new crop of brokers popping up claiming to be compliant with Shariah law or offering specialised options. These may include Hibbah, or a provision that allows for gifts to be given voluntarily without any expectation of receiving anything in return; or the no Riba policy, which allows a trader to hold a certain trade open for an undefined length of time.
Hong Kong, Singapore, and Japan have a defined regulatory framework in place to guide digital options trading.