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Well friend, they depend on the country, being a model of obtaining high-risk earnings, in some countries it is considered illegal, for example in Latin America nobody knows that they are binary options, therefore it is legal, but in other places like USA or in The European Union may have restrictions.
Binary option are legal and I recommend them to most traders, 0 spread can you imagine they are fiar, this means they not charging us but it all free just use you best skills on binary and make a leaving out of it.
Trading on Binary Options is legal but not regulated in most countries including the UK and USA. In the case of protection on your investment, you would be on your own. I would advise that you stay out of it unless you are so sure about what you are doing.