The trading of binary options has gained popularity across the globe, including in the US Importantly, before venturing into binary options trading, you should assess the regulatory environment in which your preferred broker operates. In the USA, where regulations and laws are sometimes restrictive, binary options trading is legal and anyone is allowed to participate.
Presently, there is no express regulation, both at the federal and state levels, which prohibit US citizens from participating in binary options trading. The United States Commodity Futures Trading Commission (CFTC) and the United States Securities Exchange Commission (SEC) regulate and supervise all activities taking place in the country’s financial markets.
Therefore, brokers offering trading services within the USA are required to be duly licensed by CFTC before being allowed to solicit US traders to register and trade binary options. The law mandates regulated binary options brokers USA to respect traders’ interests and security of funds. If a broker fails to oblige with the strict stipulations imposed by these agencies, then it will lose its license and risk other severe penalties.
Types of binary options brokers in the USA
There are two main types of binary options brokers in the US. The first category comprises of brokers established offshore and are allowed to operate in the USA market. This means that these brokerage companies are safe for US traders, as well. Such brokers are most commonly licensed in Europe and fall under the regulation of their country of origin.
The second category of binary options brokers in USA consists of those registered in the US. Before being licensed in the U.S.A., these brokers must demonstrate strict adherence to the stipulated laws and practices. As such, this will guarantee their commitment to providing traders with excellent and fair conditions for trading.
Tips for Choosing US Binary Options Brokers
If you want to invest in the binary options market in the USA, you will need to find a suitable and genuine broker. While choosing a broker, you should consider various factors so that you are assured of the security of your hard-earned cash as well as quality trading conditions.
Here are some essential tips for choosing best binary options brokers USA.
- Carefully go through the fine details, read reviews from customers, and check out the broker’s overall reputation.
- Always study the entire website of the broker and read the FAQ section as well as other terms and conditions.
- Look for features and other trading tools that enhance value and match your requirements. For example, a demo account will assist you experiment your trading style and acquaint yourself better with the offerings of the broker.
- Assess the quality of customer service offered so that you know how your issues could be handled in the future.
- Is the broker certified with a regulatory agency, either within the U.S. or offshore?
- How many financial instruments does the broker offer? Does it offer bonuses and promotions? A broker providing an extensive range of assets and other enticing conditions will assist you spread your trading risks more effectively.
- Check out the amount of payouts the broker offers. A broker with high payouts could help you make the most of your binary options trading.
- Evaluate the types of accounts the broker offers. A good broker will tailor different account types to suit the varying needs and styles of traders.
Recommended broker for US traders
Binary options trading in USA has become quite popular and is gaining momentum with every passing day. However, a key drawback is that traders have a limited choice of regulated binary options brokers USA. for trading, mainly because of the restrictive oversight environment. Authorities in the US are very careful in the type of brokers allowed to operate in the country and are offering licenses only to a limited number.
Another reason of being so selective is the fact that the current binary options laws in the US are not yet well established. Nonetheless, it is expected that in the near future, the US would implement a new set of laws and regulations to enable the CFTC to award more licenses to both domestic and offshore companies.
CTOption, headquartered in the United Kingdom, is a reputed binary options broker allowed to operate in the USA and regulated by CFTC.
The broker has a strong team of experienced and dedicated professionals who are well known for providing traders with a fulfilling and hassle-free trading experience.
- Tradable Assets: CToption web-based platform has nearly 100 assets for trading, which consists of indices, currency pairs, commodities, and stocks. The types of options the broker offers are high/low, One touch, Range, and 60 seconds options.
- Payouts: The broker offers high payouts of up to 81%, which is good for US industry.
- Deposit & Withdrawal: CToption offers various popular and secure withdrawal methods. The broker requires a minimum deposit of $250 to begin trading.
- Additional Features: broker has extensive education materials and excellent tools for trading.
If a broker is allowed to operate in the US, you are sure that it provides superlative and unmatched conditions for trading. If you are looking for the best binary options broker in USA., you should consider opening an account with CTOption.