StockPair is one of the most popular binary option brokers and a broker we recommend whole-heartedly. Why? Because StockPair is regulated by the European Union, and that says a lot.
What does it mean that StockPair is regulated?
The fact that StockPair is regulated by the European Union has a number of advantages for you:
Your deposit is safe
As long as you deposit your money with a non-regulated binary option broker, you are always taking a risk. Should the broker go bankrupt, the money you deposited with that broker would be lost. There would be no chance for you to get it back.
With StockPair, on the other hand, things are different. Because StockPair is regulated by the European Union, your deposit is protected up to an amount of €20,000 by the Investor Compensation Fund (ICD). That means, there is enough money in a separate save account to pay out all StockPair customers who have less than €20,000 in their account in case the broker should go bankrupt.
The European Union controls that StockPair abides by this law. This is a huge advantage for any trader. Nothing could be worse than working your way up to a nice account balance with binary options, and then having all your earnings wiped out because your broker went bankrupt. In a worst case scenario, this could ruin you financially.
With StockPair, this cannot happen. You can sleep sound and save, knowing that, whatever happens to StockPair, your money is protected.
Can I benefit from these advantages even if I do not live in the European Union?
Yes. The Investor Compensation Fund (ICF) protects all of StockPair’s customers, regardless of where they live.
What happens to accounts with more than €20,000 in them?
For bigger accounts with a balance of more than €20,000, the Investor Compensation Fund provides only limited security. In this case, the ICF protects the first €20,000 of you investment, but not the rest.
While this regulation at least provides you with some kind of security, especially seasoned trader with a very high account balance of €100,000 or more should consider getting an additional insurance.
Those insurances can protect your entire investment with all banks, and will be a tremendous help when one of your brokers or bank gets into trouble. Compared to their use, their cost is negligible. To find the right provider for your country, we recommend you Google.