Trade fusion has emerged as the insignia of binary option trading robots. In binary option, there are two possibilities regarding the outcome of a pay-out. You get either fixed financial amount or not a single thing. Binary option trading can be a money-or-nil type or an asset-or-nil type.
Trade fusion is a web-based software program used to put orders for monetary products over a platform with an economic mediator. The monetary products can be assets, commodities, funds or cash currency. The economic mediators include brokers, stock markets or banks. This system provides the liberty of using this platform from anywhere around the globe.
REGULATED vs. NON REGULATED BINARY OPTIONS
In case of a non-regulated binary option trading system, third parties do not keep track of the money and transactions are not supervised. As a result, the finances are not placed in a trust account as desired by government monetary regulatory authorities who insure the transparence between investor and broker.
The Cyprus Securities and Exchange Commission, being the initial MiFID member to refer binary options as monetary entities, declared a strategy for the regulation of binary option trading platforms on 3rd May, 2012. Later on, Malta was the next member to devise a policy for regulation of binary option trading system as financial instruments.
If a binary option trading system is regulated by CySEC, it means that all of the finances passing through that system will be placed in a trust account and being supervised by a third party.
TRADE FUSION REGULATION
In the United States, the trading of various futures and options is supervised by the U.S CFTC; Commodities Future Trading Commission. The regulatory bodies such as Security Exchange Commission (SEC) or CFTC have enlisted a few binary option trading systems as the registered exchanges and they are allowed to trade on a specified contract market that is in accordance with the rules and regulations and being supervised by these authorities. However, trade fusion and many other binary option trading systems work via web based platforms that do not strictly follow the regulatory protocol. Trade Fusion and various binary option systems are not monitored within the United States. These trading systems are not linked or associated with any of the regulatory authorities which include
Commodities Future Trading Commission
National Futures Association
Financial Industry Regulatory Authority
Securities and Exchange Commission
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Though regulated binary option trading system can offer executive services, many investors and traders still carry out their trades using binary option brokers which are not regulated and licensed by the regulatory bodies. The reason for this is that with a regulated binary option broker, there are some restrictions on the citizenship of the investors you can trade with. For example, if a binary option broker is regulated by the EU, he/she faces the restriction of working with clients from the United States. Secondly, dealing with binary options does not need the binary option broker or platform to be regulated.