If you are a US citizen who wants to trade binary options, then your choices are somewhat limited. US traders are bound by strict laws regarding financial investment and this prevents them from speculating on financial price movements via binary trading.
Naturally this has made it difficult for the industry to flourish within the United States.
On this page we take a look at the state of binary trading in the US. We look at both the rules and regulations governing this activity. We also take a look at the choices available to traders residing in this country and our pick of brokers offering services to US residents.
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Top Brokers For US Binray Options Traders
For those people who reside in the United States, the choice of brokers is restricted. New legal requirements have made it difficult for companies who to want to operate and sell binary options in the US. These strict rules have dissuaded many ‘off exchange’ brokers from soliciting clients in this region.
One solution is brokers to offer direct trading on the NADEX exchange. This however is not economically viable for the majority of off-exchange brokers.
Rather than offer a restricted range of assets, or face financial penalties down the line, many binary option brokers have chosen simply to close their doors to US traders and focus on markets elsewhere. Consequently the choice for account opening is somewhat limited.
Our pick below represents our pick of brokers that at the time of writing are still accepting clients resident in the US. While we will endeavor to keep this list up to date, please ensure you check with the broker as their status is constantly changing.
Last updated 16/05/2016
- Boss Capital – This is a relatively new broker that is growing in popularity and offers some good core features. It provides a good range of contacts. These include Higher / Lower, Touch and 60 seconds. Accounts can be opened and operated in US dollars.
It’s easy to get started. New clients can register a free account from an online form. These allow you to take a look around the brokers platform. There is no requirement to make a deposit at this point. Then when ready, you simply make the minimum deposit to your account. You can then start trading for real.
Brokers accept a wide range of different payment methods. Accounts can be operated in dollars which makes the whole process of trading much easier. Brokers allow withdrawals to be made back to the credit or debit card from where the original deposit was made. Alternatively a bank wire transfer can be used.
As most brokers operate in English as their first language, there should be no real problems when it come to conversing with your broker. Most provide a wide range of resources to help you to get started. New traders in particular will find the range of educational guides and videos helpful.
If you need a specific question answered then it is generally easy to get in contact with the support team. Online chat, email and dedicated telephone numbers are just some of the ways that you can connect with your broker if you need something sorted out on your account.
Financial Regulation In the United States
The CFTC (Commodity Futures Trading Commission) is tasked with regulating the futures and Forex markets in America. This power includes overseeing companies that are marketing binary options. It oversees activities within this sector and have a remit to protect traders from financial scams and frauds within the industry.
The more recent Dodd-Frank Wall Street Reform and Consumer Protection Act was introduced following the financial crisis of 2008. This has added a further layer of scrutiny. Now the operations of financial providers are monitored even more closely.
As a result of the passing of this legislation, it is now no longer possible for traders to legally trade individual stocks or foreign exchange pairs using digital contracts. This limits the worth of a binary options broker entertaining operations for US residents. However somewhat bizarrely, trading market Indices and Commodities is still possible.
The NADEX exchange (North American Derivatives Exchange) is a sole US based binary options exchange. While it is fully regulated, it is an exchange rather than a broker. This means that it is more like a Stock market than a company.
In truth if offers a very different trading experience from the mainstream brokers that most people are more familiar with. This is not a bad thing and many pundits believe it to offer a much more ‘neutral’ platform for trading. If you are US based and want something a little different, then be sure to check it out.