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Regulation of Binary Options in the United States
Home Finance Stocks, Bond & Forex
By: David Adams Email Article
Word Count: 476 Digg it | it | Google it | StumbleUpon it


The Binary Options are now legally regulated in the United States Ė and no wonder, since this financial asset was developed in the US. The country remains the biggest market for binaries, and brokers can offer their services to the general public. That said, the USA is very protective when it comes to its market Ė even for the most reputable of the offshore brokers itís next to impossible to get a license there.

It doesnít mean that clients from the US canít sign up with these international brokers Ė itís not forbidden by law, you just have to make sure youíre using a safe and secure company. It wonít be hard, though, because most of the well-known brokers, famous among traders, are licensed overseas. There arenít too many American companies licensed on the worldwide market Ė and the fact that the US authorities have adopted an almost exclusive "no-foreigners" policy doesnít have much to do with protecting traders and making sure their money is safe, itís more about protecting local companies and trying to give them advantage.
And because thereís little to no competition on the internal market, not many of the US binary options brokers can boast great service. Good news that at present, US citizens are legally allowed to register accounts with foreign brokers and trade overseas. Likewise, these brokers arenít forbidden to accept US traders. And when it comes to trader protection and anti-fraud laws, most European countries are actually stricter than the US and thus offer better protection.
So right now thereís a huge market of perfectly good offshore brokers that are US-friendly. Of course, you still have to be cautious and do your research, but there are many companies out there that will give any US broker a run for their money.

The main precautions you will have to take are few and simple, but they have to be observed in order for you to have a pleasant trading experience. First, pick a broker licensed in at least one country thatís a member of the European Union. That almost guarantees you 100% safety Ė and if the only country that has awarded that broker a license is a tiny remote island in the Pacific, youíre better off avoiding it.

Also, always check the list of assets your future broker is offering. The longer it is, the better Ė it will help you create many strategies and experiment with your trading in order to boost your profits. Of course, the payouts levels must be reasonable and if the website looks dodgy or dated and the trading platform has lots of glitches and bugs Ė thatís an alarm bell right there, a reputable company keeps their software clean and modern.

David Adams is a Liverpool raised financial major, consultant and broker. Currently a Director in an informational platform Binary Options A-Z ( that is aimed to educate those interested in attempting Binary trading on whether it is right for them.

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