Is Binary Trading Legal In The USA?

Good news US citizens, binary options trading has recently matured into a much more stable marketplace. The wild west phase of 2012–2015 is mostly behind us. A lot of traders are at a bit of a loss where regulations and legalities are concerned. Is it legal? Is it legit? Is it something that you can legally do? These questions are especially hot in the USA, where regulations and laws are constantly changing. There are two main aspects to this issue. Legalities concerning the binary trading brokers and legalities concerning the actual binary option traders. IE, you, most likely.

Updated 4/11/2017

Make Profits with Binary Options Systems


It’s not illegal for you (US citizens) to trade binary options. If you’re in the US you are going to have a smaller but quality selection of legit binary brokers to trade with.

It’s simply that since the loving US government have labeled binary options trading akin to a new form of gambling, you will to have a more difficult time finding a broker that will accept you if you’re a US citizen. You can trade at Nadex, MarketsWorld and BinaryMate. If you’re located anywhere else in the world, other than the USA, then you won’t have as much of a challenge. So have a look at various binary options platforms, and check if they accept US traders first. Then test out their features and read reviews of broker reputations before you decide which broker to invest your money with.

Legit & Legal USA Binary Options Trading Sites

BrokerUS AcceptedMinimum DepositStart Trading




Learn more about these brokers in our reviews. You can find the basic details, see screen shots and learn our editors thoughts about the broker before depositing your own money.

One of our long term favorite brokers is Markets World. They are located in the Isle of Man (off the coast of the UK) and have been providing traders in the US a quality choice of brokers when the majority of them have been not so great.

Nadex listed — This is the one true legal option for USA citizens who want a broker with headquarters INSIDE the USA. Now listing Nadex as one of our trusted binary brokers. They are a U.S exchange with HQ in Chicago. These guys are regulated by the U.S CFTC.

BOL Financial — Known as an honest sports betting site, Betonline is now offering a binary option product. I highly recommend them for the casual trader who just wants to bet on which way price is moving. You get a quality bonus if you want it, huge returns and when you win you will get paid.

BinaryMate listed — I’m listing these guys because they do something very different than the other brokers here. They offer ‘attractive’ account managers via live webcam. It’s more fun and entertainment than true investing in my opinion. If that’s your thing, check them out. Live webcam account managers. New interesting twist on how to trade. USA friendly and great customer service.

Important Update SpotOption brokers that are regulated by CySec (many of them) stop accepting new USA based traders as of 9/14/15. US based traders are limited to a quality broker like NADEX and MarketsWorld — which has been one of our favorites for years anyway.

The Best Brokers US Accepted — US Friendly Trading Websites

The above binary trading websites are where hundreds of thousands of US investors and traders are placing their trades at today.

Some binary options brokers are regulated. On the whole, government regulation is not yet as strict for brokers of binary options as it is for brokers for Forex or some other trade types. Regulation also does not automatically equal instant reputation and a quality, legit place to trade.

That, comes from an earned reputation. Which the above brokers have earned through quality service, fair trades, fast payouts and good customer service.

If you trade with a non-regulated broker, the risk is that there is no third party to monitor the transactions and ensure that fairness is upheld. Other than the binary trading community at large. Your money may not be kept in a trust account. If your broker is regulated, however, there is a third-party watchdog which helps to ensure fairness, and your money is required to be kept in a trust account. Several months ago in May of 2012, the Cyprus Securities and Exchange Commission (CySEC) announced that binary options are now classified as a financial instrument by the Cyprus government and that all binary options brokers within Cyprus will have to be regulated within six months of the announcement. So if you’re looking for a regulated broker, you might check for a Cyprus-based broker first; there are brokers with great reputations however which aren’t yet regulated. A very popular broker called BDB used to serve the US market but for now we have to strike Banc de Binary and 24option, who also no longer accepts US action.

What BloomBerg Law Has To Say About Dodd-Frank Bill

Most of the confusion about the legality of binary options trading in the US revolves around whether it’s legal for citizens to trade or not. With the recent implementation of the Dodd-Frank Financial Reform Act, there have been a lot of changes to the way that brokers operate. With tightened restrictions (which are confusing to many existing brokers), a number of international brokers have decided not to offer their services to US clients at this time, because they want the terms of the restrictions to be clarified before they find themselves violating terms without meaning to. In short, it’s a confusing mess and no one knows the entire answer.

Are binary options a scam? No. Binary options are a legit way to trade stocks, currencies, commodities and indices. There are potential scams come in when dealing with less than reputable brokers or falling for advertisements promising 300% returns in an hour. Sure those returns are possible but the risks are huge, and they never mention that in the marketing.

Originally published at