Are Binary Options Legal In the US? The short answer to this question is: Yes. BUT it is important to understand that there is a BIG difference between Binary Options being legal and a broker being regulated. Most, but not all, binary options brokers allow US citizens with Binary option legal in us bank accounts to open accounts.
Originally, binary options were illegal in the US. In 2009 the CFTC started regulating brokers and Nadex was the first to offer a range of binary options from different asset classes. It is important to understand that there is a difference between legality and regulation. Binary Options trading in the US is legal, however with the exception of the aforementioned Nadex and Binary Options offered on the AMEX, most of the online binary options platforms are not regulated in the US. Binary options brokers have not been subject to specific laws which secure customers accounts and enforce fair play.
Cyprus must be licensed and be subject to regulation. Most binary options brokers operate out of Cyprus, therefore this law will subject most brokers to regulations. Why Don’t All Binary Options Brokers Accept US Traders? A couple of factors have caused some online binary brokers to prohibit allowing US customers.
The fact that Binary Options trading was illegal in the US Some of the original brokers began when binary options were just becoming legal in the US and they shied away from allowing US customers until it took hold. Some of those brokers still haven’t changed the policy. The effect of legislation prohibiting online gambling Many online gaming sites had been heavily entrenched in the US market. When laws came into effect banning online gaming these sites took a tremendous hit as they lost a disproportionate share of their business. Some binary options brokers, fearing similar types of legislation which may prohibit, or limit binary options trading, are avoiding the US market altogether.
UPDATE : Banc De Binary stops accepting US traders due to CFTC ruling. It is possible that as online binary options trading grows US lawmakers will look to impose legislation either limiting or regulating the industry. For one thing they will want to enact regulations to protect the rights of US citizens to ensure that the deposits are protected and the trading is done fairly and securely. The second and most likely reason is to ensure that the US government is properly compensated tax wise in an ever growing online industry. US public company trading on NASDAQ’s Bulletin Board under the symbol WGMI. As a publicly trading company, Win Global Markets adheres to the world’s highest standards for corporate governance.
We were one of the first gaming companies to go public. You must be logged in to post a comment. Disclaimer: The information provided on this website is the opinion of the authors and is not necessarily based on factual data or actual legal decisions. Risk Disclosure: Trading in the financial markets comes with varying levels of risk. It is the responsibility of the trader to recognize the risks involved. Traders should never risk more money then he can afford to lose. Is Binary Trading Legal In The United States?