Distinction between regular traders and those living in the US ought to be made. Being in the second group means following certain rules of a rather restrictive character, even though binary options trading can, in fact, be used in all parts of the world. It is important to mention that together with Fair Binary Options, traders based in the US will finally get the access to best and fairest US brokers. The list of US brokers is not only based on the fact that these brokers enable US customers to trade binary options, but also on the quality of the services offered. What is important for every trader to know is that binary options trading is legal in the United States of America, despite what the rumors say. More info on this topic trading can be found in our article on legality of binary options.
The difference between regular binary options brokers operating in Australia or Europe and those located in the US is the organization of the market. US traders, if they want to trade on regulated platforms must use binary options exchanges – like NADEX. This online exchange platform, although granting uninterrupted operations, is highly regulated. Also, higher fees and costs are to be expected, once again discouraging the small investors from taking part in binary options trading. Read our NADEX review.
All US trading platforms are regulated by Commodity Futures Trading Commission (CFTC), and strict rules and laws apply. This lowers the liquidity of the trader, as it is quite usual for platforms to charge additional fees on every transaction. Luckily, there are more than enough brokers who provide binary options trading services for US traders outside the US market. These brokers are commonly known as offshore brokers. Read more about binary options regulations.
European vs. US System
US binary options brokers that operate at a global level use the European system where the broker is also the liquidity provider. This makes the trading process much easier, interesting and not forget to mention, much more affordable, as they usually don’t charge fees on every transaction like some of the US platforms do. Things have changed quite a lot in the last few years and many binary brokers are applying for regulation in Europe, which means they will not be able to offer services to US traders. That is why it’s important for every trader to be well informed about latest news in binary options industry, as the situation with US brokers is often changing on the everyday basis. To stay well informed, make sure to follow our binary options news section, as well as the US brokers list that is regularly updated.
This is why we at Fair Binary Options knew it was important to highlight the remaining brokers accepting US customers. Even though we support all brokers listed in the table above, we strongly recommend reading all the reviews before making a final decision. Every broker is unique and offers unique trading experience, so it is important to choose a broker that is right for you. Find out more about differences between Nadex and traditional binary options brokers.
Binary Options Legal United States
Binary options are legal in the US, too, but there are some limitations. US traders can legally trade only via three platforms: NADEX, CME or Cantor Exchange. From the three exchanges mentioned, NADEX is the most popular as it has a great trading interface and investing possibilities. The user-friendly approach, as well as the easy to understand terms and conditions have made this exchange extremely popular among the US citizens. NADEX also offers a variety of binary options types, including spreads, so trading on this binary exchange is always interesting, fun and allows better money management.
Trading with unregulated brokers is considered illegal, but the state will prosecute only the broker who is accepting US citizens and not the trader. The CBOE, Chicago Board Options Exchange, was established in 1973 and provided a platform that could be used to trade options on. Later on these over the counter operations became regulated by OCC, Options Clearing Corporation, to ensure that traders were actually sticking to their word and buying and selling what they announced they would. Anyone who did not obey the rules could get a temporary or lifetime ban.
In 2007, the OCC suggested a change of rules that would allow trading binary options on the major markets. The rule was signed into law in 2008 after being approved by the SEC. The American Stock Exchange began to list binary options as the first stock exchange in the world. This happened in May 2008 and in June of the same year CBOE began listing binary options as well.
For US traders, we always suggest trading with Nadex, as they offer the most variety of all US platforms.
Binary Options in Hawaii, Washington and Nevada
USA regulatory framework is quite clear when it comes to binary options. Unlike in Canada, where every province has a specific regulatory framework, in the USA the binary industry regulation is unified. It doesn’t matter if the binary trader is a resident of Hawaii, Texas, New York or Nevada – the rules of the game are all the same for all.
CFTC license is valid in the entire USA area. This may seem similar to the CySEC certification that is valid in the EU states. However, states in the USA don’t have an additional regulatory framework like states in the EU do. For example, in France traders should always rather give an advantage to AMF regulated brokers, than to CySEC regulated broker. In the United States, there are no additional regulations like that on a local level.
For this reason, it is important to understand that CFTC regulation is of great importance. Traders can see it as a seal of guarantee no matter where they are. NADEX is one of the binary exchanges regulated by CFTC and it allows traders to place their investments safely.
How to recognize a good US broker?
Customers are the best indication of whether or not a broker is indeed trustworthy. As long as customers are thrilled about trading with a certain platform, this enthusiasm will be visible in the level of engagement. On the other hand, an untrustworthy business will most likely disappear from the market once traders will not require its services. However, this is not always a smooth transition and many traders may not be aware that the broker they are registering with is does not provide a good service. This is why Fair Binary Options inspected brokers accepting US customers to present them to our readers. Every year we reward the best US broker with Fair Binary Options Award, to give traders additional feeling of safety while choosing the broker and placing trades. More advice on how to find a good broker read here.
US Broker Reviews
Fair Binary Options is here to adequately clarify the matter and to properly inform traders of available choices in terms of US brokers. Traders may count on this website as it will point them in the right direction, providing detailed information that is adequately structured and organized in tables and charts, as well as with complete, adequately researched reviews. Surely, after gathering all the necessary details from Fair Binary Options, they will be able to make a solid decision with regards to a trustworthy reliable US broker.