US Binary Options Brokers – Myth or Reality?
US Binary Options Brokers – Myth or Reality?
Binary options trading is extremely popular in the United States. Most of the binary option trading started in the US before attempts were made to regulate the industry. While traders themselves are allowed to register at any binary options broker, unregulated and offshore binary options brokers are not legally allowed to solicit US traders to trade binary options. For a broker to offer services in the US it would have to seek CFTC approval before doing so.
There are basically two types of online trading brokers in the US.
- Offshore brokers that are licensed by the EU and follow the safety standards imposed by the laws of the United States.
- Binary options brokers located in USA.
Most brokers operate outside the US jurisdiction. In most cases, these brokers are licensed in a European Union member state and most probably registered by a registered body in the EU such as CySEC.
Most European brokers also offer much better services than genuine US binary options brokers due to the intense competition from rival industries within the EU as opposed to those that are domiciled in the US which doesn’t operate in such intensity.
It is against the law for an off shore broker to falsify its regulatory authoritative operational status within the US without having gone through the proper channels. Banc De Binary was one such broker which was busted because it lied about having a USA license and an office in the United States. While it seems that the CFTC is tolerating some offshore brokers that do not actively advertise in the US, such tolerance as seen by Banc De Binary was clearly constituted as gross misconduct.
Brokers that are located in the US
As far as true US binary options brokers — as in actually based in the US — there is only one real choice for traders, NADEX. NADEX binary options trading has very little in common with the kind of binary options trading which we’re all used to.
It actually has more in common with trading traditional “vanilla” options contract trading than it does “normal” binary options trading.
The Features of a Nadex System include
-Legal for US Residents
-$0.90/contract with a $9.00 max fee per order.
-Low Collateral. Can Initiate trading with a minimum deposit of $100
We think that this kind of trading will probably only appeal to highly experienced and professional traders. However, there is a completely free NADEX demo account you can get access to, and there is also a lot of information over there so you may want to check it out, if just for fun or out of curiosity.
It’s however expected that in the near future the US would implement a new set of laws and regulation that would enable the CFTC to award much more licenses to both domestic and offshore companies. This will help to improve not only the competition on a local level but a global level as well.
US Regulated Binary Options Brokers
Unfortunately there is no real option outside Nadex at this present time. Those that do operate in the US do so under the radar. Our article Is Binary Options Legal in the US? highlights the plight of the binary option world in the US world.
Much of the recent rush to find a reliable broker that accepts US traders is due Spotoption’s latest move, as they are now in the process of obtaining regulations by the CFTC and temporarily will not accept any USA Residents as of September of 2015. This includes CherryTrade.com, Porter Finance.com and many popular brokers which are no longer available in the United States. Traders will not be able to re-deposit money into their accounts but if you have money in your Spotoption.com trading account, you can withdraw it or continue trading.
At this point we are are not yet aware of the situation with GT Options or Bloombex which did offer some services to USA Clients.
GTOptions Review in Detail
- Special Features: Classic Option, 60 Seconds, One Touch, Long Term, Pair and Follow Me
- Deposit Requirements: $250 – Unlimited
- Trading Account Types: Mini, Standard, Executive, Gold and Platinum
- Types of Assets: Commodities, Stocks, Currency Pairs, and Indices
- Resources: Educational Video Library, and Market Reviews
- Mobile Trading: Yes
- US Clients Accepted: For Now
- Minimum Withdraw Amount: $100.00
Bloombex Options Review in Detail
Bloombex has remained basically “under the radar” up to now though. We accidentally came across their website while browsing brokers, it caught our interest with its polished look.
Bloombex Website: http://www.bloombex-options.com/
Officially Launched: Late 2010
Accepts US Traders: For Now
Minimum Deposit: $250
Minimum Deposit: $100
Minimum Trade Size: $20
Return Rates: Up To 85% Standard, 500% One-Touch, 10% OTM Refunds
Account Currency: USD, EUR, GBP, AUD
Deposit Bonus: 100% On ALL Accounts! (only known broker to do this)
Demo Account: No Bloombex Options Demo Account Available
If you have any experience to share regarding your experience with a US binary options broker or have any questions regarding any offer you are considering, please don’t hesitate to let us know and we will be happy to give you our review on the broker
Be warned that many channels are going to continue and promote binary options brokers for US traders, knowing that it’s illegal. If one choose to sign up to an unregulated broker who operates in the US water he or she chooses to do this under their own risk
USA REGULATORY WARNING: It is against the law to solicit U.S. persons to buy and sell commodity options, even if they are called ‘prediction’ contracts, unless they are listed for trading and traded on a CFTC-registered exchange or unless legally exempt. Offshore binary options brokers are not supervised, connected or affiliated with any of the regulatory agencies such as the Commodity Futures Trading Commission (CFTC), National Futures Association (NFA), Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA).