Binary options trading is extremely popular in the United States. The reason might be due to the fact that the industry itself was created in the US, back in 2007. In this article we will attempt to guide traders towards finding all the information needed regarding US Regulated Binary Options Brokers.
When it comes to binary options trading, the regulatory responsibility in the United States, is a bit unclear among binary traders. But as a matter a fact it is quite clear and organized. In the US, there are 2 official organizations that regulate online financial trading. The Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). There are large number of binary options brokers that accept US traders although they do not have any CFTC or NFA license.
Both organizations are not keen in licensing most of binary options brokers, or at least creating a regulatory structure that will allow them to operate freely in the US. However, there are some binary brokers that accepts US traders. We warmly recommend traders to check carefully his broker’s legitimacy before investing any money. One of the ways to do so, is via U.S. Securities and Exchange Commission.
It is not 100% certain if binary options trading is illegal for traders who are based in the United States. However, a few binary options brokers such as banc de binary for example, have received hefty fines as reported at Finance Magnets in late February BDB, has reached a settlement with US authorities agreeing to pay $7.1 million in restitution and disgorgement, $2 million in civil penalties to the CFTC, and $1.95 million in civil penalties to the US SEC.
As it seems at the moment, it is unlikely that the authorities in the United States will decide to ban traders from trading binary options. So American traders will continue to be able to trade legally, with any unregulated or US Regulated Binary Options Brokers they wish to trade with while the brokers themselves, won’t be able to offer services in the US without CFTC approval.
So as you can understand by now, binary options status in the US, is a bit shady, yet, it is not considered as an illegal activity and there are no federal laws that forbid US citizens from trading binary options online. But one thing is certain, the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission are very unfriendly towards brokers operating from outside of the US, especially towards offshore companies certainly, do not gives out any official licenses to those companies, even if they fulfill all licensing criteria.
With that in mind and after we have been reviewing US Regulated Binary Options Brokers. It appears to be that currently, the only US licensed binary broker is Nadex. They are regulated by the CFTC and the only US based broker (Chicago). For the full Nadex Review Click Here.