Which are the U.S FRIENDLY Binary Options Brokers?
The end of September 2015 brought a turmoil with Binary Option trading for U.S traders. The decision by Spot Option, who is the largest provider of software platforms preferred by most Binary Options brokers to close its doors to U.S traders left the world in a turmoil. U.S traders holding accounts were not rejected. But new traders are certainly finding it more and more challenging to find brokers who will actually receive their deposits.
Why did this happen? The CFTC, which is the U.S trading regulating body, enforced strictures on regulations. Offshore and non US regulated brokerages became strictly prohibited to solicit US trader. Strictly speaking the only Binary option brokers in the US that are regulated by the CFTC are Nadex and Cantor Exchange. As a consequence of this decision, we are now slowly seeing serious brokers such CTOptions and Finpari, adopting new platforms in order to be able to provide a service to the many new traders In The U S looking for trading opportunities.
ThunderTrade is yet another broker, which is US based with an interesting platform that is allowed to accept new traders and Tradorax have now started accepting around 40% of US traffic directed to them.
Who is the CFTC?
Commodity Futures Trading Commission
U.S. Commodity Futures Trading Commission
Formed April 15, 1975
Commodity Exchange Authority
Jurisdiction Federal government of the United States
Headquarters 1155 21st Street, NW, Washington, D.C.
Employees 435 (2006)
Timothy Massad, Chairman
The U.S. Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974, that regulates futures and option markets.
The Commodities Exchange Act (“CEA”), 7 U.S.C. § 1 et seq., prohibits fraudulent conduct in the trading of futures contracts. The stated mission of the CFTC is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to foster open, competitive, and financially sound futures and option markets. After the Financial crisis of 2007–08 and since 2010 with the Dodd–Frank Wall Street Reform and Consumer Protection Act, CFTC has been transitioning to bring more transparency and stricter regulation to the multitrillion dollar swaps market.
See full review on the Wikipedia link
The future and Binary Option Trading in the United States
Although the situation looks rather grim st the moment, since most Signal software and Auto Traders cannot be accessed via US brokers, it is certainly looking brighter for US brokers by January 2016
In a very recent YouTube review Michael freeman, who is a respected blogger for binary options trading, and in constant contact with many brokers, assured that by January 2016, most brokers will be providing platforms which are compliant with CFTC regulations and trading should resume normality also within the US.
In the meantime however, the Binary Option Sheriff will continue to give our US Traders all updates as we receive them. If you are interested in receiving updates on trading binary options subscribe to our site below.
- If you’re in Europe, Canada or South Africa, I suggest signing up with 24 Option which is one of the most reputable EU-regulated broker.
- US-traders should ONLY go with Nadex
- Are you in Australia/New Zealand? Pick Banc de Binary
- Looking to start with a free demo account or a very low deposit broker ($10), IQ Option would be the best choice.
- If you prefer a SpotOption broker, I totally understand! Check out Cherry Trade