As of date, the US residents face the maximum trouble in finding a binary broker accepting the US clients.
The main reason for that is the US law that demands registration of a Forex or binary broker with the SEC (Securities and Exchange Commission) or the CFTC (Commodities Futures and Trading Commission), as deemed necessary, before accepting the US clients.
The CFTC is the federal agency that regulates the trading of commodities futures and options in the USA.
Only a handful of binary brokers has the financial capability to shell out $20 million as a deposit with the CFTC. Furthermore, a binary broker has to strictly comply with the following regulatory procedures.
List of Top 10 US Binary Option Sites for 2020
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- The binary broker should have a physical presence in the US.
- The binary broker should provide a detailed risk disclosure statement to the clients
- A binary broker should disclose the number of active trading accounts at the end of every quarter. Furthermore, the number of profitable accounts should be revealed.
- A binary broker should also maintain liquid assets equal to or more than the total amount of obligation to retail customers.
- The binary broker should also send a detailed monthly statement to all the clients on the final trading day of every month.
- Without any delay, a binary broker should disclose legal issues, if any, to the CFTC.
Thus, considering the practical difficulty in following the rules, many binary brokers turn their back to the US clients. However, there are some legitimate binary brokers, provided in the list below, who accept traders from the US.
Those brokers who are not authorized, but are believed to be soliciting the US clients are named in the CFTC Red List. The CFTC’s official website also provides the disciplinary action, if any, taken against a binary broker. The regulation watch dog will only lend a helping hand, if a trader deals with a binary broker registered with the CFTC or SEC. A binary broker’s trading platform registered as an exchange will be listed in the SEC. On the other hand, a binary broker who is registered as a designated contract maker will be in the list of CFTC regulated brokers.
The nature of digital option contracts offered by a CFTC regulated binary broker is almost the same as the one offered by a broker operating from some other part of the globe. The only CFTC regulated exchange that offers a different kind of binary options contract is the Nadex exchange.