Is it legal to trade binary options in the USA?
It is legal to trade binary options in the USA. The United States does however have very strict regulations that govern binary options trading. This makes trading very complex for both brokers and traders. Financial trading in the US is regulated by the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission). The CFTC is the regulatory body responsible for overseeing stock and option exchanges, and financial securities, while the SEC is responsible for futures and option and markets.
These bodies grant valid licenses to financial service providers so that they can legally operate and offer their services in the country. They can also suspend these licenses in the event that a broker breaks the regulations and rules imposed. There are actually very few licensed companies in the USA that are actually located in the country, of which NADEX is one. This is due to the expensive and strict regulatory processes that are required to obtain a license from the SEC.
There are no brokers that have a license to operate in the USA and are located outside of the USA (offshore brokers). That does however not mean that these are illegal as there are no laws that either prevent offshore brokers from allowing U.S. traders to use their platforms, or prohibits traders from using offshore brokers. U.S. citizens can therefore legally use a non-U.S. broker.
Many offshore brokers do however obtain licenses, frequently in the jurisdiction of the EU. These comply with the criteria and safety standards imposed by U.S. laws, in particular by the CFTC. The regulatory body thereby allows their presence in this way, even without awarding them a license, as these brokers still respect the USA’s regulations and rules that ensure the safety of traders.
IQ Option USA is a trusted broker for all traders from that country, so trying them out is totally safe.