USA Binary Options


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usa-binary-optionsTrading in binary options is regulated in many countries around the world. These regulations can present restrictions on the types of trade permissible or even the ability to access certain features or brokers. In fact the binary options market in the USA is the most restrictive of all the markets in the world. This is because the US government seeks to protect its citizens from potential scams. This does not mean the trade is illegal!

The Law and Binary Options USA

It was almost impossible just three or four years ago to enter the binary options trading market if you were a US citizen. This is because, thanks to the fact that binary trading provides either a win or a loss, it was considered to be gambling. Although the rules and regulations regarding US binary options brokers are being relaxed, there is still a wide array of hurdles to overcome before a broker can successfully offer its services to US residents. This leaves a US resident with two viable options. The first of these is to use a foreign based trader and accept the risks that go with this. The second is to use one of the few binary options brokers who are allowed to trade in the US. Most traders will prefer to choose the second option; for a broker to become registered in the USA they must adhere to strict guidelines. This makes them some of the best operating platforms in the world. They are also available to traders across the world and offer a safe place to trade in the binary options US and foreign markets.

Regulation of USA Binary Options

Most countries have specific bodies which are created to deal with financial instruments and in specific the binary options trade. The US is no different; in fact it has two bodies which are designed to look after binary brokers and traders:

The NFA

The NFA is the National Futures Association and is the only organization in the US allowed to issue a license to a binary broker. It is also the body that must supervise that all firms are adhering to the strict rules and regulations which apply to trading in the financial markets; this includes the binary options USA markets.

The NFA will also deal with any customer issues regarding the trades and providing a case is opened according to their strict procedures, it can result in a heavy fine or even the loss of a license.

The CFTC

The CFTC is the Commodity Futures Trading Commission which works alongside the NFA. Its role is to ensure that all financial bodies, including US registered binary brokers, operate on a transparent basis and remain competitive. This regulatory body also seeks to improve the standards and operating procedures of all US binary options brokers, specifically in minimizing the risks of loss or corruption of personal data. If they feel there is any hint of a fraud or a scam they will investigate and deal with the broker accordingly.

This body is the ultimate safeguard for US traders. If you have any concerns regarding the US based binary options broker you have chosen you can check their registration and history with the CFTC. This body is constantly monitoring the binary brokers and investigating anything suspicious; this makes any broker registered to operate in the US market one of the safest in the world!

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