Many look to try their luck in the binary market because of its accessibility, transparency, and profit. For citizens in the US, however, the means by which you can do so are limited. There is only a single truly regulated broker for binary options trading in the country.
Does that mean only one legal platform exists for trading these options? Not quite. When you read more about brokers in the USA, you’ll find that the choice isn’t so restricted after all. Today, we’ll give you a rundown on the best binary options brokerage firms for those living in the United States.
Top Brokers for Binary Options Trading in the USA
Some of the leading binary options trading platforms for US citizens include, but are not limited to:
1. Nadex
If there ever were a be-all-and-end-all platform for binary options trading, it would be this one. Nadex is a CFTC-regulated single exchange platform that allows binary options trading for those living within US territory.
Unlike what typically happens when trading binary options, it doesn’t involve traders who take the opposing side of the trade. Instead, Nadex is the go-between that ensures a reasonable and fair trade. Their fee is minimal, $1 to participate and withdraw the trade. The maximum cost isn’t anything bank-breaking, either, at only $9.
This specific broker platform provides a vast array of options, from indices and commodities to currency pairs, economic events, and more. It also offers access to a demo account that comes with virtual money to help you get the hang of the ins and outs of binary options trading.
Opening an account doesn’t require an initial deposit. They have a user-friendly viewport that’s incredibly easy to navigate. Nadex also uses a software program that lets you leverage a ton of useful tools for making wise trading decisions.
2. Cantor
Cantor is up there with Nadex in terms of being CFTC-regulated, and that should tell you the level of trust for the platform is extremely high. It’s also one of the few brokers offering US citizens the legal means to engage in binary options trading.
Using Tradologic as its viewport, Cantor provides tools, charts, data, and other trading essentials up front. Thus, a newbie doesn’t have to struggle when searching for trading tips and information when using it.
It comes second to Nadex in popularity and, thus, doesn’t have as many trading options. For instance, the platform’s total currency pairs only amount to six, including gold. That said, it does offer more “interesting” options, such as pattern contracts and bitcoin swaps.
Cantor holds the edge over Nadex in terms of expiry date options, with choices ranging from five-minute to 24-hour contracts. A minimum $100 initial deposit is required to enter into these contracts, and that’s hardly a financial setback.
Lastly, it has a feature that allows users to limit account drawdown for trading, which prevents you from draining your account in one go. This is incredibly useful, especially since Cantor doesn’t provide a demo account.
3. NYSE and CBOE Brokers
Specialist futures and options brokers on the NYSE and CBOE exchange platforms are your last resort for trading binary options legally as US citizens. In either medium, broker-involved trading takes place in a strictly regulated environment. That said, a broker from either of these markets could use Cantor or Nadex to perform the trade and charge extremely high for it.
That’s why many will prefer the previous two over these choices, as they allow you to take charge without fees. That isn’t to say NYSE and CBOE aren’t good platforms. However, they’ll usually have professionals take control of your trade, which translates to a more expensive venture.
How Does Binary Options Trading Work in the US?
The price range for each binary option in the US is from $0 to $100. It’s also the amount you’ll end up losing should your prediction of an asset’s future price be wrong. If the prediction is correct, you get your investment plus $100 minus fees that apply.
What Are Binary Options Fees?
In Nadex, you’ll be asked to pay a minimum of $1 and a maximum of $9 to enter and leave a contract. That said, even if the amount of purchased contracts technically exceeds $9, you will still only have to pay $9 to participate and withdraw from them.
There would, however, be an exception for options trading using the CBOE exchange platform. After all, it tends to charge commission fees on top of the individual fees.
Should You Trade Binary Options in the US?
All things considered, binary options trading should be a great choice for a US citizen. Using well-regulated markets, such as the ones above, and leveraging binary trading guides and strategies, there’s no reason for a US user not to have a relatively successful venture. When you play your cards right, binary options trading gives you the chance to earn some serious profits.