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Top US Binary Options Brokers Online
At US Binary Options our financial analysts have selected the top trusted US regulated binary platforms in 2020 and the best stock options brokers.
From 2020, we compare and provide professional reviews on all binary trading platforms in order to help you choose the broker that suits you best.
Check out our top Binary options brokers comparison table to find a trusted platform, and also our platform blacklist with scam brokers to avoid.
Read our guide about binary options trading for beginners as well as few basic binary strategies that you should take into consideration.
What are Binary Options?
These are a new kind of investment. What you will do is speculate on which way you think the asset will go in, or the direction it will go in. What you used to do was you have to purchase the asset now that no longer has to happen. When the platform is used to purchase a binary option the contract that is made enables the buyer to buy an asset which is underlying and at a price that is fixed and with a time frame that is fixed and specified with the seller.
Are there other Names for Binaries?
All or nothing options are also another name for binaries and are digital options + Fixed Return Options or FRO’s. Each of their names stresses the nature of the binary option. When it comes to outcomes there is always two possible results and this is something that the investor will be aware of before they purchase the option. The following is an example:
- Binary option for Microsoft is purchased at $100
- At the end of the day their shares will be much higher than they were when purchased
- So 71% is the return offered on this investment
This is a particular category of option where a person would be able to get either all or nothing when there comes to talk about the payout. This thing makes binary options easier a lot to know as well as makes the trading process with them trouble free than the previous traditional options.
These options are like this;
- They can only be traded until they expire
- Once these are expired, they would surely be settled for the customer in already specified amount (in dollars)
- If the trade expires and it is out of the money then this means that the buyer gets nothing
So now you can see why binary options can either enable you to gain which is the upside or you end up with a loss which is the downside, there is always a risk when it comes to binary option trading. If you were trading in the traditional way then things would be different.
All or Nothing
When it comes down to the platform you are using for trading.
- Nothing can mean something
- Even it happens; at the time of expiration, the proprietor of the particular option could be given a payout yet when there is no money in their hands.
Binary options can also be found under other names including:
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- Exchange Market
- Digital Options
Other things to Learn
Before you decide to start trading there are a few things that you should research first including:
- Learn the outcome options
- Decide your position
- Learn how the price is determined
- Learn the advantages of binary and traditional options
- Learn where binary options are traded
- Check the implicit transaction costs of binary options
Are Binary Brokers legal in the US?
Regarding regulation for the offshore binary options brokers, we can affirm that some binary options brokers are already regulated in the European Union ( CySEC ), but not yet in United States.
Since 2006 US binary options have been in America but they have only just started to become popular since the middle of 2008. This has happened; traders and brokers have started popping up from many different states all over the US, what has happened is that people are now wanting to start a career in binary options trading and the one thing that is on every ones lip is:
Now when it comes to binary options are divided into two levels and these are:
- US regulated exchange platforms by CFTC, where americans can trade binary options legally: NADEX and CANTOR EXCHANGE.
- Offshore brokers not regulated.
The OCC or the Options Clearing Corporation in 2007 ruled that binary platforms would become legal then in 2008 the SEC or the Securities and Exchange Commission approved binary options and listed them as cash or nothing security. Then the American Stock Exchange or Amex and the Chicago Board Operations or the CBOE also listed binary options with exactly the same name. Then NADEX or the North American Derivatives Exchange added to its trading platforms binary options. But one thing has been done and that is a restriction has been imposed:
- Americans are free to trade with binary options as long as the broker they are using is legitimate
- The broker has to have a legal business in the county it is in and has to have followed and processed the procedures for it to operate
- Also, they must not have been banned by the federal government for transacting with US citizens in this business
Regulation In The United States
Now just because something is legal it does not mean that it is regulated.
- Legal means that it is protected
- Regulated means that it is not protected
Well US binary options brokers are regulated and over the years binary regulations are becoming more and more stringent. It is the OCC that has made a point of making these regulations harder and also making sure that binary option sold by brokers have the right securities. Rules regarding trading have now been put in place and traders and brokers are expected to abide by them, if they don’t and they violate the rules then either or both trader or broker can end up being banned for long periods of time.
These have also been set for things such as indices and how many can be listed, this gives better control to the trading that is going on in the market. Scams have also started to rear their ugly heads when it comes to USA binary option trading too. Some of these scams have been very malicious and ended up causing some traders to lose thousands of dollars. But because of the SEC and the US Department of Justice have taken legal action very quickly against the crooks by doing things such as:
- Freezing their bank accounts
- Putting them behind bars
the traders that were scammed were able to get some of their deposits even though it is not the entire amount back, the federal government has been able to enforce justice when it is needed and making broker who was involved in the scams accountable for what they did wrong. This is now why there has been a hard-core regulation within the United States and they will keep on doing so until the binary options market is strong and reliable in America.
American Traders Guide
The USA is a tricky place to trade binary options from. With regulations and laws continually changing, you may be asking yourself if the information you have is correct and up to date. Firstly, it is “not” illegal to use binary options in the US. However, you may find it more of a challenge compared to other countries.
That said binary options trading is not as regulated as compared to Forex or other trading types so the restrictions are not as tight as they could be. It is essential though to make sure you trade with a reputable, regulated broker whether USA based or as long as they legally accept US traders.
With the recent spotlight on online trading, many US traders now find themselves without a reliable broker. Who can you open an account with and are there are any regulations that you should be aware of? Well, we are here to answer those questions and provide you with advice through our carefully curated list of brokers.
In this article, you will learn:
The brokers best suited to your needs What local payment methods are accepted Taxes and fees that apply to US residents
Traders in The USA
While binary trading in the US is legal, the Commodity Futures Trading Commission (CFTC) classed options trading as akin to gambling and put in place sanctions and legislation similar to those that govern casinos. These rules prevent many international firms from advertising their services and soliciting US traders which then leads them to stop accepting new signups. The limited choice of international brokers available means traders sometimes choose a locally based broker.
While it is difficult to find an international broker that accepts US traders, there are still some good ones to choose. With increased regulations, many brokerages have now decided to move their head offices to locations like London and Cyprus making it hard to find a good USA broker. So, in such a heavily regulated binary options market, what should you be looking for and how do you know which broker to choose? We take a look at some of the things you should be looking out for:
Licensing And Regulation
When something is as heavily restricted as binary options trading is in the US, there will be companies that try and trade under the radar! Exercise caution and make sure you choose a broker with reputable licensing and regulation.
Asset And Trade Types
With a restriction on brokers that you can choose from, you want to make sure that you pick one that offers everything you want. Make sure they provide the range of assets that you are looking for and a variety of trade types.
Mobile Trading Features
Trading on the go has become critical to many of you. Who has the time to be stuck behind a computer in this era of modern technology? Check that the broker offers a mobile app or at least a responsive website trading platform.
Free Demo account
Check out the various demo accounts and the restrictions that apply to use them. Can you use it without making a minimum deposit and is it reloadable? Are you able to carry on using it to complement and enhance your trading skills?
Given the unknown quantity of external brokers and the restrictions of those available to them many people, when faced with a choice, will choose a local broker sadly missing out on some of the great offers available from international sites. Following our recommendations and reviews will ensure that you get a good trading experience whoever you choose to use.
Broker Fees And Tax
USA law states any profits earned from binary options trading are subject to US tax. You must report the income as either capital gains or revenue to the IRS. If you are making a small amount, then the money can be declared as income; however, if it is a significant amount, then it must be reported as capital gains tax.
Of course, your profits can be offset by any losses so you must declare the overall income earned taking into account money lost. As brokers don’t fall under the same category as casino’s, they don’t have to send you a tax form, so it is the responsibility of the trader to ensure they declare the revenue in the appropriate tax year.
Aside from taxes, there are a few other small fees to consider:
Deductions for the commission of successful trades which happens at source Broker fees for processing deposits and withdrawals using specific payment methods e-Banking platforms tend to charge a small commission for each deposit, and certain types of wire transfers will have costs associated with them Currency conversion fees if trading in a different currency
While these fees aren’t huge, it is worth shopping around for the best payment providers and option brokers that don’t charge fees for deposits and withdrawals. Consider making fewer but larger deposits or withdrawals to minimise the set fees.
While some questions surround binary option regulation and the legalities of trading we are here to remove any areas of uncertainty and provide you with fact-based knowledge. It is perfectly legal to trade binary options in the USA, and for traders to register with any broker, but it is illegal for offshore companies to solicit traders unless they have a Commodity Futures Trading Commission (CFTC) license.
Because of this difficulty of entering the USA market and the red tape surrounding it, many international brokers do not accept US traders with many leaving for countries like England and Cyprus.
Some big-name brokers are widely known and accepted and can save the trader from having to go looking for an appropriate offshore broker. There are also plenty of Commodity Futures Trading Commission (CFTC) licensed companies that are allowed to sign-up traders from the USA and are not deterred by the legislation.
Without spending time and effort in researching these companies, many people tend to stick with what they know. We, however, think that the choice should be there for you to make and so we use our expertise and experience to research the market and bring you the best binary options brokers that are licensed to trade in the US.
Exercise caution and make sure you choose a broker with reputable licensing and regulation.
How we Recommend Brokers
For US traders it can be a lengthy process finding an appropriate broker use. The legislation and regulations mean that you can’t just find one that you like the look of to open an account. Not only should you be comparing their offering to that of their competition but you need to check that all binary option brokers are licensed to trade in the USA.
We understand that you don’t have unlimited time to go through a long list of brokers to find the one that offers the best benefits to you then to see that they won’t accept your business. To help you and save you much time we have put together a list of recommendations to ensure that you find the best trading account for you without having to spend hours finding it.
It doesn’t matter what country we’re reviewing when it comes to binary trading; the USA gets the same treatment. Our recommendations and reviews cover many crucial points. These include the benefits such as great bonuses, the quality of the signals service, the usability and functionality of the trading platforms and the payouts on offer. We have a team of experts whose purpose is to investigate the offerings of all brokers to find the best US binary options broker and recommend them to you.
Frequently Asked Questions
Is binary trading in the USA legal and safe?
It is legal to trade a binary option, but it is illegal for any company to solicit business and trade unless they have a local license. In terms of safety, it is perfectly safe to trade with a reputable broker.
Do I need to pay fees and taxes on my profits?
The IRS requires all residents to declare their income and pay any taxes according to federal law. It is not the responsibility of the brokers to keep a record of traders’ deposits and withdrawals.
Can I test brokers before trading with real money?
A demo account is a crucial feature of any reliable and reputable broker. With a demo account, a new account holder can register and take advantage of this demo feature before they have to use their own money.
Is it easy to make deposits and withdrawals?
As long as you have a way to an initial deposit using a widely accepted debit card, then you can pay quickly. Withdrawals can take between 3-5 days, but some sites offer a quicker turnaround.
Can I trade using my mobile or tablet device?
Many good US brokers offer a reliable mobile site and an app for iOS and Android. If the broker that you are looking at doesn’t provide an excellent mobile service, then we say avoid them.
Jacob has been an author for us since our launch in 2020. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.
Top 5 US Binary Options Brokers – January 2020
We’ve tested the most trusted USA binary options platforms, and below you can find a comparison table with the results.
Best International Binary Options Brokers
|#||Broker||Max.Bonus||Rating||Description||Min.Deposit||Max. Payout||US Clients||Site|
|1.||RACEOPTION.COM||$250 Bonus||4.9||Top Broker
|$250||90%||Yes.||VISIT RACEOPTION Read Review|
|2.||3 Risk Free Trades + Bonus||4.8||Fast Withdrawal
Risk Free Trades
|$250||90%||Yes.||VISIT BINARYCENT Read Review|
|100% + $250 Welcome Bonus||4.7||Revolutionary Platform.
Up 95% Payout.
24/7 Video Chat.
|$250||95%||Yes.|| VISIT VIDEFOREX
Best US Regulated Binary Options Exchange
|Exchange||Promotion||Rating||Min.Deposit||Max. Payout||Regulation||Open Account|
|Free Education||5.0||$250||100%||Yes ( CFTC )||VISIT SITE Review|
It might be surprising to someone that online financial trading in the USA is rather hazy. The role of two licensing and regulating bodies, viz., Commodity Futures Trading Commission (CFTC) and the National Future Association (NFA) has been rather passive. No fret… You need not be despondent on this count. There are some reputed offshore binary platforms to cater to the customers residing in the US. You can depend on the binary options brokers, which are safe and secure, as well as maintain the requisite standards. Let us have some insight into the binary options trading.
Best Binary Brokers
If you are looking for binary options brokers rendering a hassle-free service, probably, the Binarycent is one of them, though any financial authority does not regulate them. However, with a very impressive deposit bonus and trades from 10 cents, they offer services to the US traders. Their website is accessible not only on a desktop or on the laptop but also through a portable device powered by either Android or iOS. This is a very convenient option for those who travel extensively to get updates through pocket-friendly devices.
This broker launched in the year 2020 is a relative newcomer in the binary options industry. RaceOptions accepts the customers from all over the globe including the US customers. A customer can trade-on over 150 assets and the choice of currency to trade includes USD, EUR, GBP, and RUB. The brokering company also assigns high priority for the customer service.
Best Binary Options Exchange
North American Derivatives Exchange (Nadex) established in the year 2009 is the US-based exchange, which is a subsidiary of IG Group Holdings Plc. Nadex, regulated by the CFTC is also one of the most trusted brokers among the US traders. The simple to use trading tools also offer advanced tools for the needy traders. Moreover, you can access educational material on the Nadex learning center. You can also try their demo account on the desktop or portable devices.
Tips for Selection of Broker
Of course, the first thing a customer does is to Google the best binary options brokers and find out the services, their reputation besides the customer reviews. You can also browse some third-party websites for an impartial review. A customer may also keep the following tips in view before short-listing the binary options brokers.
Though not mandatory to test the demo account, it is a requirement to test for a while to ensure how consistent it is in maintaining the profitability. An offer of a demo account also ensures that the broker desire profitability as well as yearns a long-term relationship with the customer. Thus, it proves that the broker cares for the success of a customer on a long-term basis. In case there is no demo account, probably, the broker is looking for a short-term gain, which is a disadvantage to the potential customers.
Anyway, the broker offers you a trading service for which he is in the business. What you should look for obviously is beyond the routine service – what more value-addition service he renders to the customers. The basic platform might offer you a couple of trades. However, an honest and genuine broker should offer you other features such as double up, roll over, early close or any such trading tools. It is also a good idea to look for a broker offering you the educational resources on the subject.
You should aim for a broker who arranges webinars, video tutorials, or one-to-one training sessions explaining the strategies of trading. The FAQ and trading alerts would also be an added advantage for a customer.
No doubt, the customer service is very crucial in any service industry. You should not be carried away only with the website or tools of the binary options broker. You can try a conversation with the customer service team to find out how the service is. A few questions on the subject would reveal how proficient the manager is in answering your queries. Moreover, you can judge whether he is customer-friendly while replying to you. Probably, sometimes, the service representative tries to convince you to be their customer without answering your query.
The next significant pain point is the terms and conditions of a broker. In spite of all the positive features, in case the conditions of a trade are not favorable, probably you are inviting trouble for yourself.
Sometimes, a customer takes for granted the terms and conditions in the process of completing the formalities to hasten the trading activity. The unfair and unfavorable conditions could be a reason for your subsequent losses in the transactions.
It is always advisable to go through the FAQ and fine print of the conditions for each of the feature. Do not affix your signature on the dotted line without reading between the lines.
The reputation of the binary options brokers the USA plays a vital role especially when the regulatory stipulations are very fluid. In the absence of a strong regulatory authority, the onus is exclusively on you as a customer. Even if someone is regulated, the entity might be only for private banking services, or some business entity. Since there is a host of brokers in the trading market, you should check out for the reputed broker offering secured and safe trading platform. With the technology at your fingertips, the review of any broker is only a few clicks away. You can take a few minutes in browsing the information on the reputation and feedback from the customers’ review.
The points of consideration could be multi-platform accessibility like the mobile-friendly websites, multi-currency options and a company offering you a wide range of banking solutions free of charge. These are not a very high expectation of a customer. In the present day situation, accessing through a portable device is almost a necessity for a trader, and the option to trade in the currency of different countries. If you are keen on some specific asset, make sure that the asset is tradable with a broker you are contemplating.
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