US Binary Options

Unlike many other jurisdictions, the United States has amongst the strictest regulations when it comes to providing binary options to US-based clients.  As a result, there are only three exchanges regulated by the CFTC that have regulatory licensing to provide binary options trading.  The three exchanges permitted to provide these types of investment services include Cantor Exchange LP, the Chicago Mercantile Exchange (CME), and the North American Derivatives Exchange (NADEX).  Aside from these specific platforms, which must uphold the highest degree of standards to maintain their CFTC and SEC licensing, there are no other regulated binary options providers that are legally allowed to operate in the United States.

While there are companies that provide services to US clientele, these types of services are normally unregulated, meaning that an investor has no recourse in the event of fraudulent or deceitful activities on the part of the broker.  In an in effort to protect American investors, these regulatory agencies have taken a hard line towards unregulated entities and have stepped up their tools to enable investors to do their research prior to getting involved.  To check if a broker is regulated and licensed, there is the BrokerCheck tool available from FINRA and the BASIC tool from the National Futures Association which is designed to verify the registration and background of any firm or licensed financial professional.

Considering the lengths regulators go to protect investor interests, US binary options brokers are amongst the most secure when it comes to protecting client funds and providing remedies for any type of problems that may arise while investing.

The Basics for Binary Options

With the proliferation of the internet and widespread use of mobile devices, investing has evolved significantly.  Interconnected financial markets and new technology has made investing more accessible than ever before and led to the creation of numerous new products designed for beginners and less sophisticated investors.  One of the easiest ways available to invest in global financial markets is with a product called binary options. A “binary” decision in simple terms implies that there are two available choices.  When it comes to binary options, the product itself gives an investor two choices; to buy or sell a financial asset.  Once a binary decision has been made, an investor is entitled to a fixed gain if they make the correct decision or nothing if the wrong decision is made.

What makes binary options unique is the fixed nature of the payouts from correct or incorrect decisions along with the ability to invest significantly lower amounts of capital than financial services companies would traditionally require.  The result is an accessible financial product that can be used by a range of individuals from novice retail traders to highly sophisticated and advanced institutional investors.  Thanks to the innovative nature of binary options, getting involved with global financial markets has never been easier.  To get started, there are several different companies that provide these regulated services in the United States, including popular platforms NADEX and Cantor Exchange.

 

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