The short answer is yes. US traders can legally trade binary options! There is is nothing illegal about trading binary options for Americans. It is smart to always check the local laws, ordinances, rules, regulations, stipulations, fine print and your and your home owners association policy before doing anything on the internet. But but binary trading is legit for USA citizens.
Updated for 2014.
In 2007, The US Securities and Exchange Commission, the SEC filed to a rule change to binary options – While we are not lawyers or going through this entire pdf, essentially after this, the binary trading sites were allowed to offer binary options to US residents. According to this press release on April 8th, 2008, the CBOE (Chicago Board of Exchange) filed for approval of index based binary options trading. With the S& P 500 to be the first listed.
Legit and Legal Binary Options Trading Sites For Americans
Good news, there are a small handful of high quality, legit binary brokers you can trade at. You can see my quick reviews on these sites here: http://binarytradingsites.com/reviews/
- TradeRush (www.traderush.com) – Extremely easy to get started trading. TradeRush binary broker allows all traders from America. Clean, user friendly, competitive returns and low minimum trade amounts make TradeRush one of the most enjoyable sites to trade options at.
- Goptions (www.goptions.com) – fast cash outs mixed with an strong bonus offer, spot-option trading platform and a team focused on US traders make Goptions one of the few quality choices for US based traders.
- 24Option (www.24option.com) – *Sorry, USA traders are no longer allowed as of June, 2013. Once widely regarded as the best binary trading site online. USA traders are no longer accepted. They offer the most competitive returns on the EUR/USD currency pair. US traders can take advantage of a wide assortment of underlying assets to trade. From gold, silver, wheat and oil to the S&P 500, Googles stock, forex pairs and more. US binary trading OK for all types of exotic options including the high yield choices. They also have 60 second options if you are feeling lucky.
- Banc De Binary (www.bbinary.com) – *Updated Feb 7th. Back on January 20th of 2013, BDB stopped accepting US traders. Probably the highest class offering of any binary trading site of 2013. Billed as a private options banker, this broker rolls out the red carpets for the people willing to make more than the minimum deposit. The minimum deposit at Bbinary is $500 and that is because they deliver such a level of service to each trader they have to know that their clients are serious about making money. If you plan to invest $500 or more then you owe it to yourself to get an account at Banc De Binary
Licensed, Regulation and Reputation
Good news, those sites have it. Now keep in mind that unless you are looking for binary options trading companies with offices in the USA then you are going to be hard pressed to find anything more concrete than the Banc De Binary New York NY address. The reason for this is that while they can freely accept US citizens they have their headquarters in more tax friendly jurisdictions like Cypress and the Isle of Man. The license process for US regulation as well as international regulation is a lengthy and tedious one. Quite frankly the binary options industry are so relatively new that the entire framework of legality and licensing is not completely worked out to a point where we can conclusively say everyone is properly licensed.
What is the most important to you anyway? A government seal of approval or a reputation earned from past performance. The sites we list all have a positive history and are in the process and often leading the charge for out and out regulation and licensing.
Banc De Binary has a New York, NY satellite office. The others all have 800 numbers that US citizens can call. And speaking of these brokers being headquartered in other countries like Cypress, you can see that they are moving forward with the CySEC regulation and possibly FSA following. Of course
Why So Few US Brokers Listed?
There are dozens if not hundreds of binary trading sites online today. Many of them, how should we say it, aren’t worth the disk space their website is hosted on. Many of them are out and out scams. Some of the other legit brokers also decided to stop accepting traders when the passing of the UIGEA and laws that were so ambigious they decided that rather than to risk the wrath of the US government it is best to just avoid the US market all together. While the vast majority of sites do accept US traders, there are some good sites, like ioption, that do not.
Trade at the good sites. The legit brokers. The quality options banks online.
Research and Links to US Trading Laws, News & More
There is no clear consensus as to what lies ahead in the world of binary option trading and specifically in the US market. Being one of the more regulated trading markets and the fact that uncle sam is more than happy to step in, I expect more and more laws restricting some of the brokers in the future. This is another reason the above sites are featured because they are the ones leading the charge for regulation on the federal level with the US government. They are the ones that are the most likely to be allowed in first.