Binary options traders from the US face special legal issues. Legally, only brokers that are registered with the two government institutions that license and regulate online financial trading in the USA: So far, no brokers have registered with these authorities — except for one U. There are also international brokers that accept U. With the answers to these questions, you will be able to start your trading career with a broker that is both legal and highly profitable for you.
We will take a look at the special requirements U. The legal issues that U. The fact of the matter is that the United States government has created two institutions that are supposed to provide U. Unfortunately, most binary options brokers shy away from cooperating with these institutes. Since most binary options brokers are based outside of the U.
Regulation would, however, mean additional rules to follow, and no broker likes someone else telling them what to do. Legally, this leaves U. Strictly speaking, non-regulated brokers are forbidden from offering their ser vice to U. On the other hand, nobody can prevent U. You decide with whom you want to do your business, and nobody can prevent you from sending your money overseas. If a broker from the other side of the world treats you unfairly, who is there to help you? That does not mean that all non-U.
In fact, the overwhelming majority of binary options brokers offer trustworthy businesses. These brokers are just as trustworthy as brokers that are regulated by the American authorities. The problem with this brokers is that if there ever should be an issue, what are you going to do?
You already wrote the customer support, and they said that you are mistaken. What are you going to do? Are you really going to go to Europe and sue this broker in a legal system with another language and laws you are unfamiliar with? While the odds are slim that you will ever have such a problem with a broker that is regulated by the European Union, it can never hurt to have the full support of the American legal system if there should be a problem. The important point to take away from this article is that the legal situation is not black or white.
We recommend American traders to stick with U. While the legal situation for U. This binary options exchange is Nadex. Nadex is one of the few binary options exchanges in the USA. Nadex is based in the U. The main advantage of Nadex is obvious: As we mentioned early, trading with a broker that is not regulated by U.
Think of it as a deal between friends. When you lend your friend money, there is no guarantee that you will get it back. Without a contract, you are unable to sue your friend if they never repay you. When you give your money to a registered bank, however, there is a legal system in place that takes care of your money and guarantees that you will get it back. Currently, Nadex is one of the few binary options exchanges that offer this protection to U. There is a good reason why many brokers avoid U.
This reason is that the U. In the wake of the financial crisis, the authorities have done a lot to prevent a similar incident from ever occurring again, which means that they have tightened the rules that govern the banking sector significantly. For a binary options broker, all the additional requirements and the reports they have to file to proof that they have met these requirements mean additional costs.
Additionally, while these requirements increase trader security, they limit the options of a broker that now has to abide by certain standards it could ignore otherwise. By accepting these regulations, Nadex offers traders a higher level of security than any other broker or binary options exchange.
You can rest assured that Nadex will not bombard you with false promises or faulty data and that the exchange maintains the high standards of security and compliance that you would expect from any bank. Aside from the legal issues, Nadex has also done a lot to revolutionize trading itself. You could predict whether the market will rise or fall over a given period of time in relation to the current market price. While this system is simple and easy to understand, it leaves a lot to be desired.
By attaching your prediction to the current market price, brokers limit the predictions you can make and the accuracy of these predictions. Such a system makes no sense. Instead of having to use the current market price as the target price for your prediction, you can choose from 30 different target prices periodically. Some of these target prices are above the current market price, some are below it, and you can predict whether the market will trade above or below each price.
All of these four ways help you to trade more accurately and maximize your profits. With the risky target prices, you can make more money when the market environment allows for such predictions. With the less risky target prices, you can find trading opportunities in market environments where you would be unable to find a profitable opportunity otherwise.
If this way of trading sounds intriguing to you, you will be glad to hear about the next advantage of Nadex, which allows you to test this system without risking a single Cent. Binary options demos are a great tool for new traders. Demos enable you to trade with a fully functioning binary options account, but invest play money instead of real money. In the environment of a binary options demo, there is no risk.
You can test yourself, the broker or exchange, and new strategies and trading styles without having to worry about losing money.
Especially new traders can profit from this system, as it allows them to test their trading skills without having to risk money on a form of investment they have never tried before. In fact, new traders can use a demo to develop their skills until they are absolutely certain that they can turn a profit by the end of the month, allowing them to switch to real-money trading only when they know that they can make money.
While demos are a great tool, traditionally, there has been a problem with them: Luckily, Nadex came up with a better solution. While Nadex has one of the best binary options demos the market has to offer, they allow you to get this demo entirely without having to deposit any money. Simply fill out the sign-up form, and you can start using your demo. It allows you to test Nadex, yourself, and binary options in general without having to invest a single Cent.
If you find that you have a talent for trading binary options, you might have found your way to financial independence and out of the rat race. If you find that binary options are not for you, you have learned a valuable lesson without losing money.
Either way, you win. With the Nadex demo, U. All in all, Nadex offers the perfect service for traders from the United States. We will keep you up to date on new brokers or exchanges that register with the U. If you are looking for an alternative to Nadex, there are some brokers from Europe and all over the world who accept U. Some brokers exclude U. It is, therefore, important for U. Luckily, there are some good brokers for you. For many years before Nadex provided the perfect service for U.
This demand has created the supply you would expect, which means that we were able to find two good brokers to recommend to you. While all brokers offer their service in English and allow traders to run their accounts in U. Dollar, there were still two problems American traders had to overcome. To help you avoid both problems, we have tested all brokers that accept U. Each of these three brokers is uniquely well-fitted for a different type of trader. Finpari is one of the brokers that accepts U.
American traders should be more than happy about this decision, for Finpari has introduced innovative new features to the binary options world and offers a number of intriguing features that allow even complete newcomers to binary options to turn a profit right from the start.
Finpari offers a tool that can solve the biggest problem of financial investments. Traditionally, the biggest problem for newcomers to the trading scene in general and the binary options scene specifically was getting started. Just like any other skill, binary options trading takes time to master, and while you are learning how to trade profitably, you will inevitably make some rookie mistakes that cost you money. Surviving these mistakes can be difficult.
With Finpari, you can skip this difficult stage of your trading career and jump right to the money-making stage. Finpari allows you to copy the trades of professional traders into your own account, which effectively means that you can outsource the complicated process of market analysis and still reap the profits that result from it. In this system, you select a broker to follow and the amount of money you want to invest in each of their trades.
Every time this broker makes a trade, Finpari will execute the same trade in your account with the amount of money you defined. You can select the trader you want to follow from a long list of available traders on the Finpari website. For each trader, you can see the percentage of trades the trader has won in the past and the return on investment ROI the trader generated.
This system is like a mutual fund, where you let other people trade for you, too. The two tools that most traders will miss on this list are Paypal and Bitcoin. Finpari is the only binary options broker that offers these payment options, which can make your banking a lot simpler and save you fees.
Finpari is the only broker that allows you to trade 24 hours a day, 7 days a week. The availability of all other brokers is limited.More...