Licensed Market Making

SpotOption offers licensed binary options market making through partner company, SpotOption Exchange.

SpotOption Exchange is the first licensed market making investment firm in EU, for Binary options trading.  Headquartered in Limassol, Cyprus, SpotOption Exchange obtained its license in May, 2012,  and  is regulated by CySec under license number 170/12.

If you are interested in offering binary options in a regulated manner, then you have two choices.  The first is by becoming a SpotOption Tied Agent, and the second is by actually becoming a licensed Cyprus Investment Firm (CIF).

Here is a breakdown of the differences:

CIF:

Description:  Any legal entities registered in the Republic of Cyprus wishing to offer investment and ancillary services after being granted CySec’s license.

A CIF can offer the following services :

1)       Reception and transmission of orders in relation to one or more financial instruments

2)       Execution of orders on behalf of clients

3)       Portfolio management

4)      Investment advice

In order to receive CySec’s License you will need to:

1)       Establish a Cyprus Company

2)       Prepare and Submit an application to CySec for acquiring a License

3)       Sign an Agreement with Spotoption Exchange Ltd

4)       Start your Regulated Business

Your obligations and benefits as a CIF:

• Minimum Initial Capital Requirement of 200,000 EURO
• No Market Risk Exposure
• Brokerage fees are determined as a percentage on profitable positions
• You hold client funds
• Domain Possession
• Compliance and back office by Broker
• Full transparency to your business activities

SpotOption Tied Agent:

Description:  A Tied Agent can be any person with a company registered in Cyprus, that employs  a person, registered in the public registrar, who is authorized to provide the service of reception and transmission of clients’ orders.

A Tied Agent can provide the following services :

1)      Reception and Transmission of client orders

2)      Promotion of Company’s Services

3)      Market to potential clients

As a Tied Agent of Spotoption Exchange Ltd  you will need to :

1)    Establish an EU Company

2)    Sign a Tied Agent agreement with Spotoption Exchange Ltd

3)    Prepare and Submit an application to CySEC

4)    Start your regulated Business

Benefits of becoming a SpotOption Tied Agent:

• Work with regulated Binary Options Market Makers
• No minimum initial capital is required
• Do not have to deal with client funds
• Receive timely and honest payouts
• Full transparency to your business activities
• Be part of the fastest growing online industry
• Clearing by the Market Maker
• No Market Risk Exposure