Legal US Binary Options and Brokers - Safest USA BrokersRecently we have witnessed a much more stable binary marketplace in the US compared to several years ago with an increasing number of binary options. All of this was only inevitable after leaving the wild-west phase behind us, which was largely the period between 2012 and 2015. But, that phase left a lot of confusion and concern among traders about the legality and regulation of binary trading. Potential binary option customers ask whether it is legit and legal and whether the authorities will come after you if you start trading.

This is the hottest issue among traders in the USA at the moment, a country that has ever-changing laws and regulations. Before we get into specifics, we want to inform you first that it’s not illegal to trade binary options. It’s very much legal and regulated. The problem is that most US brokers are not legal and do not hold valid licenses. This makes the selection of legal US brokers a small one, but with enough quality.

List of Binary Option Brokers accepting traders from the USA:

Broker Offer Trade Now / Review

Deposit: $250
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Deposit: $250
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Deposit: $200
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Deposit: $250
Payout %: 91%

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You as a US citizen can also trade binary options with the help of brokers located outside of the US. But, that can be a bigger challenge because not all of them accept US traders. If you live anywhere in the rest of the world, you will not experience troubles in getting to trade binary options with any broker. As a US trader, you would.

However, you should always keep in mind that trading with a non-regulated broker is a bad choice. And although regulation does not automatically earn the broker quality, it offers security to the trader. Quality comes with the good customer service, fast payouts, fair trades and quality service all of which makes for a well-earned reputation. Therefore, always look for reputable and regulated brokers.

Frequently Asked Questions

In the following you will find ten of the most frequently asked questions asked by US citizens interested in legal US binary options. By providing answers to them, we will try to offer clarification on the subject.

If you ever thought that binary options are scam, rest assured that they are not (although you should be careful where you trade). There are potential scams, but after this you will feel more educated regarding legal binary options.

  1. When are binary options legal?

    The US allows for binary options only on exchanges regulated in the United States by the CFTC (Commodity Futures Trading Commission). This commission is a US government agency whose job is to oversee swaps trading, options and futures. Its job is to protect the public and market users from systemic risk, abuse, manipulation, and fraud too. Most of the US brokers refuse to be regulated by the CFTC, which is why you should be careful.

  2. Which binary options providers should be avoided?

    The biggest problem is trading with the help of binary options providers that are not properly regulated and registered. There are many US brokers like this. Those based outside of the US that operate online may not be regulated too. However, although they operate outside of the US laws and hold member funds offshore, many of them are legit and offer quality to US citizens. All you have to do is a good research.

  3. What to consider when looking for non-US binary options providers?

    The first thing to look for after you have researched all the providers well is whether they accept US citizens. Some of them do, some don’t. Also, look for the type of binary options platforms that they offer, and check out their reputation by reading reviews written by experienced binary options traders. Check if the country where the broker is located has regulated binary options. Only that way you will know where to invest your money.

  4. Is it illegal to trade with offshore binary brokers?

    It’s not illegal to trade outside of the US with the help of non-US binary brokers because they are not subjected to US laws. As a result you are allowed to register with such broker. However, it is up to the broker to decide whether to accept US traders. Usually most of the EU based brokers respect the CFTC’s request to block US citizens from registering with them even though they fulfil all regulatory criteria imposed by US laws.

  5. Can I try trading binary options for free?

    The answer to this question is: Yes, you can. Many brokers that offer online trading allow for traders to open a demo account first. This way they get an insight into the tools that they can use to trade and the entire offer. You don’t have to make a deposit, but you get to develop your own money making strategy in a completely risk-free environment.

  6. Is there a minimum deposit policy?

    Brokers do have a rule about the minimum deposit you have to make in order to start trading. Some will go as high as $250, while other require that you deposit just $20 to get started. It’s up to you to choose the option that fits your pocket. EU based brokers usually offer better conditions due to the diversity of the European market.

  7. What happens to licensed binary brokers that break the rules?

    When a broker has acquired a valid license, his job is to respect the safety and security of the traders. The law obliges him to offer safe financial service. If he breaks some of the strict rules and regulations imposed on him, he will automatically lose the license, risk heavy fines and may even face prison time.

  8. Can we expect a larger number of binary option operators in the US in the future?

    At the moment the CFTC is very strict about who will get a license to become a valid binary option operator. This is the main reason why there is such a small number of operators. However, since the market is constantly evolving, it is expected for a new set of laws and regulations to be implemented soon, which will award more licenses to US and even offshore brokers.

  9. What do I need to open a binary options trader account?

    Binary option operators need to verify your identity and will ask you to submit some proof. Usually they ask for scanned identification document, such as passport or ID. Additionally, as further proof they require for you to send them a copy of a recent utility bill which serves as a proof of residence.

  10. How binary options brokers make profit?

    They usually make profit from trading fees. A certain trading fee is set which they deduct when you make the trade. It’s usually small and the entire profit that you make goes for you. The operator gets only the small fee. Also, a fee is deducted if you exit the trade before it’s settled. This fee is usually of the same amount as the other.

Tips for Choosing the Best Legal Binary Option Brokers

Choosing the right broker can be a critical step if you want to make some money through binary options. Various factors are to be considered. Here are some of the most essential tips when choosing the best binary option brokers.


Carefully read opinions and reviews from other traders. A broker’s reputation says about the quality he offers. Go through all of the fine details about that broker and study the entire website including the T&Cs and FAQ. See if he is certified with a regulatory agency.


See what tools are available and if they enhance value; choose a broker that offers demo account; see if there are bonuses and promotions offered to customers in order to spread your trading risks more effectively; check out if the payout options suit you.

Customer Service

Good and reputable customer service is essential because that way you get issues handled professionally and instantly. You will encounter a problem at least once in your trading career, and having a professional support agent at disposal makes things easier and less frustrating.

Legal US Binary Options – The Bottom Line

Binary options are very simple, extremely popular and most important legal in the US. You are asked a simple yes or no question whether a market will be above a certain price at this time. If yes, you buy the option. If no, you sell. It’s a powerful way of making money provided you are good at predicting prices.

Despite the popularity, binary options are somewhat undiscovered territory that yet has to be discovered in full. As this market grows and matures so will the laws and regulations in the US. One of the biggest problems at the moment is the selection of high-quality US binary options brokers, which is very small compared to Europe for example.

But, look how far we have come. Some years ago binary options trading was done largely as an over the counter transaction. The reason behind this was the lack of regulations. Today, binary options are as legal as other markets with the prospect of improved regulations to allow a bigger variety of brokers.