In America, binary options are regulated by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Nadex functions more like a typical exchange than an online broker and there is a fee structure for making trades, ranging from $0.90 to $9 per trade, depending on the trade. As more brokers apply for CySEC and European regulation, it becomes more likely that we will see another US regulated binary options broker sooner than later.
Regulations and brokers are changing all the time and it is important to keep up to date with the developments. There are many brokers that are not CFTC regulated but are US friendly and accept US customers for binary options trading.
It’s important to understand that there’s a big difference between US regulated binary options brokers and brokers that accept US traders.
To date only one broker has achieved regulation from them, and that is NADEX, an options exchange governed and monitored by the CFTC.
Brokers can’t offer stock trading without a FINRA (Financial Industry Regulatory Authority) license, so the Nadex exchange offers binary options trading on Indices, Forex, Commodities and Financial Events. Within the last few months we’ve already seen Banc de Binary apply for, and get refused, CFTC regulation.
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