Recently a great deal of attention has been focused on the operational location of many Forex and Binary Brokers. A constantly changing regulatory landscape has made it very challenging for a broker to operate from one jurisdiction.
In Israel, for example, many brokers were running their operations but were located or regulated out of various jurisdictions like Cyprus or the UK. It looks as if the government in Israel will now take steps in preventing binary options brokers from running their operations within Israel and offering their products to citizens around the world. The situation in Israel is unique as there were many documented cases of abuse on the part of the binary brokers and that has now led to pressure on the government to take this action.
The broker has US Location Other Regulation
It is not only Israel where many brokers have their operations. The United States which has stringent and defined regulations on both forex and binary options also has numerous brokers that operate within the US but not offering their products to US citizens. Some of these brokers were either previously regulated in the US and are now regulated in the UK, Australia or elsewhere. For many of these brokers, it is a not an option to have hired and trained employees and then expects them to start the process all over again. Most of the brokers that are operating from the US are transparent about this, but that has not always been the case with the brokers working out of Israel.
An Understanding Public
By now the public is pretty understanding when it comes to where a forex broker operates from. It seems quite reasonable that a broker that is regulated out of Australia or the UK might well have operations in cities like New York or Chicago where the talent pool for employees. Now should be the time that brokers become more transparent with their location of activities. The public has a right to know the true location of the sales and support staff they deal with daily.