With binary options trading only recently, in the later half of 2012 and into 2015 just coming fully into the spotlight, a lot of traders are at a bit of a loss where regulations and legalities are concerned. Especially in the USA where regulations and laws are constantly changing. There are two main aspects to this issue. Legalities concerning the binary trading brokers and legalities concerning the actual binary option traders. IE, you, most likely.
It’s not illegal for you (US citizens) to trade binary options. If you’re in the US you are going to have a smaller but quality selection of legit binary brokers to trade with.
It’s simply that since the loving US government have labeled binary options trading akin to a new form of gambling, you will to have a more difficult time finding a broker that will accept you if you’re a US citizen. You can trade at nadex, MarketsWorld and PorterFinance. If you’re located anywhere else in the world, other than the USA, then you won’t have as much of a challenge. So have a look at various binary options platforms, and check if they accept US traders first. Then test out their features and read reviews of broker reputations before you decide which broker to invest your money with.
Legit & Legal USA Binary Options Trading Sites
|Broker||US Accepted||Minimum Deposit||Start Trading|
Learn more about these brokers in our reviews.
Important Update SpotOption brokers stop accepting new USA based traders as of 9/14/15. US based traders are limited to a quality broker like NADEX and MarketsWorld and now(10/20/15) CherryTrade which have moved to a new platform accepting US traders.
The Best Brokers US Accepted – US Friendly Trading Websites
The above binary trading websites are where hundreds of thousands of US investors and traders are placing their trades at today.
Some binary options brokers are regulated and some are not. On the whole, government regulation is not yet as strict for brokers of binary options as it is for brokers for Forex or some other trade types. Regulation also does not automatically equal instant reputation and a quality, legit place to trade.
That, comes from an earned reputation. Which the above brokers have earned through quality service, fair trades, fast payouts and good customer service.
If you trade with a non-regulated broker, the risk is that there is no third party to monitor the transactions and ensure that fairness is upheld. Other than the binary trading community at large. Your money may not be kept in a trust account. If your broker is regulated, however, there is a third-party watchdog which helps to ensure fairness, and your money is required to be kept in a trust account. Several months ago in May of 2012, the Cyprus Securities and Exchange Commission (CySEC) announced that binary options are now classified as a financial instrument by the Cyprus government and that all binary options brokers within Cyprus will have to be regulated within six months of the announcement. So if you’re looking for a regulated broker, you might check for a Cyprus-based broker first; there are brokers with great reputations however which aren’t yet regulated. A very popular broker called BDB used to serve the US market but for now we have to strike Banc de Binary and 24option, who also no longer accepts US action.
What BloomBerg Law Has To Say About Dodd-Frank Bill
Most of the confusion about the legality of binary options trading in the US revolves around whether it’s legal for citizens to trade or not. With the recent implementation of the Dodd-Frank Financial Reform Act, there have been a lot of changes to the way that brokers operate. With tightened restrictions (which are confusing to many existing brokers), a number of international brokers have decided not to offer their services to US clients at this time, because they want the terms of the restrictions to be clarified before they find themselves violating terms without meaning to. In short, it’s a confusing mess and no one knows the entire answer.
Are binary options a scam? No. Binary options are a legit way to trade stocks, currencies, commodities and indices. There are potential scams come in when dealing with less than reputable brokers or falling for advertisements promising 300% returns in an hour. Sure those returns are possible but the risks are huge, and they never mention that in the marketing.
- Comprehensive 24 Option Trading Guide – Excellent broker with stellar reputation.
- SEC Guide To Finding A Securities Attorney
- CFTC Fraud Advisory
- The CFTC Page on Basics of Futures Trading
- Aftermath of the US Regulatory Warning
- The National Futures Association
- Nadex – North American Derivatives Exchange