There are many binary options brokers that claim to be regulated in the USA but unfortunately this is not always true. It’s important to understand that there’s a big difference between US regulated binary options brokers and brokers that accept US traders. Today there are many brokers accepting US traders but only one that is CFTC regulated.
Nadex and CFTC regulation
In America, binary options are regulated by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). To date only one broker has achieved regulation from them, and that is NADEX, an options exchange governed and monitored by the CFTC.
Nadex functions more like a typical exchange than an online broker and there is a fee structure for making trades, ranging from $0.90 to $9 per trade, depending on the trade. Brokers can’t offer stock trading without a FINRA (Financial Industry Regulatory Authority) license, so the Nadex exchange offers binary options trading on Indices, Forex, Commodities and Financial Events.
The minimum deposit is $100 and there is no fee to open a trading account but traders need to complete a regulatory questionnaire and submit the following information:
- Permanent US Residential Address
- Date of Birth
- Social Security Number
- Employer Name and Address
Future of American binary options brokers
As more brokers apply for CySEC and European regulation, it becomes more likely that we will see another US regulated binary options broker sooner than later. Within the last few months we’ve already seen Banc de Binary apply for, and get refused, CFTC regulation.
Regulations and brokers are changing all the time and it is important to keep up to date with the developments. It’s best to check periodically with sites like TradeOpus.com or the regulatory agencies at www.cftc.gov and www.sec.gov.
Alternatively you can subscribe to our newsletter for the latest market news and updates.
US Friendly Brokers (accept USA traders)
There are many brokers that are not CFTC regulated but are US friendly and accept US customers for binary options trading. In our experience, the top 3 are:
A demo account is an important feature when deciding which Binary Options broker to choose. A binary demo account allows you to test the broker platform without having to risk real money. It also allows you to test your trading strategies in real time.
Many brokers will offer you the opportunity to open a demo account after you make an initial deposit. There are several free binary options demo brokers that allow you to trade with a broker practice account without having to make a deposit. You simply need to sign up for a broker account and request your free demo.
We did a study of the different free demo accounts on the market and graphically displayed the results with 2 graphs. We looked at the following criteria while doing our research. All of the brokers on our list offer a free demo account without having to deposit. Most of the brokers that offer free demo accounts, either limit the funding level in the account and/or the time frame for making demo trades. We rated the brokers based on these criteria. Brokers with higher funding levels and greater time frames are ranked the highest.
The following table lists the brokers based on the Funding Level and Time Limit.
Based on the above data MarketsWorld offers the best demo account in that the Funding Level and Time Limit is unlimited.
We were able to graphically display the best binary options brokers that offer free demo trading accounts and rank them according the highest score.
Our Best Binary Options Brokers with Free Demo Accounts
To take advantage of these free binary options demo accounts open an account at these brokers by clicking on the following.
We created a quadrant which displays the brokers based on the criteria listed above.
As you can see in the quadrant CedarFinance and Markets World offer both highest funding and greatest time frame.
Binary Options Demo Account Advantage
A Binary Options Demo Account is a much greater indicator of trading success than a demo account in any other venue. A demo account with Stock trading or currency trading allows you to get a feel for the trading platform, but is not a real indicator of actual trading results. The reason is that in Stock trading, for example, you actually buy shares of stock in a marketplace. In reality you can’t always get the amount of stock you want at the price you want. Furthermore, your purchase or sale of stock has an effect on the market price. When you use a stock demo account the purchases and sales are just simulations. The computer fills your order much more easily than would be the case in a real marketplace and your fake transactions have no affect on the actual stock price.
Binary Options demo trading is an exact duplicate of real Binary Options trading. Since in real binary trading you do not actually purchase the underlying asset, your demo trading can mimic real trades. The only difference is in demo trading you neither win nor lose real money, whereas in the real trading actual money is being risked.
It is for this reason that it is crucial for anyone interested in Binary Options trading to first utilize a demo account. It will replicate live trading and give you a good idea as to whether you can be profitable or not.
A relatively new binary options trading feature available on many binary option trading platforms is 60 Second Binary Options. The 60 second option is similar to the standard binary option except for two key aspects. The investment amount is as low as $5.00 per trade and the option expires in 60 seconds instead of the more standard 15 to 60 minute time frame.
60 second binary options brokers
SpotOption first offered 60 Second Binary Options late last year and the feature is now standard on all of their brands including Redwood Options and Banc De Binary. Earlier this year TechFinancials added their own version to their 24option brand. In October of 2012 Tradologic introduced the feature on the XPMarkets platform. We recently prepared a 60 Second Binary Options review comparing the feature on the different platforms. read more…
Top Rated Brokers
- TradeRush Rating 91%
- BeeOptions Rating 88%
- 24Option Rating 86%
- AnyOption Rating 85%
See the reviews and ratings of all brokers and choose the right options platform for your trading.
UPDATE March 2014
After doing our initial pre-release product review we have just completed our extensive testing of the full Option Bot 2.0 system.
Option Bot Software
Option Bot is basically a customizable currency pair scanner. You enter time frame and pip spread amount and the system scans 15 different currency pairs and alerts you when a pair moves in one direction the amount of pips you select in the selected time frame. Option Bot 1 and Option Bot 2 are identical in basic functionality. Option Bot 2.0 is available on more platforms including mobile devices and the original version was a separate download, whereas version 2 is browser based. The software has definite value as we will explain shortly.
Option Bot Recommendation
Option Bot has 2 parts. The first part is the actual software which if used properly has much value. It is a scanner nicely geared towards trading Binary Options currency pairs. I would suggest signing up for Option Bot and taking the free 7 day trial.
If you are a more experienced trader Option Bot can be a terrific tool to use with many Binary Options trading strategies. The Retraction Strategy or Corrective Strategy will work great with these trading alerts.
In general Bots are not the best way for beginner or intermediate traders to make money. You must have real trading knowledge to fully understand how to use the alerts. The best way for beginner traders to make money is by making use of trading signals provided by expert traders. Fortunately, OptionBot has recently upgraded it’s staff of proffessional traders that are provided to help customers develop the ideal trading strategy to use in conjunction with the OptionBot software.
How to Best Use Option Bot
1. Sign Up to the Option Bot 7 Day Free Trial.
2. Option Bot will Contact you to advise the best brokers to trade with based on your trading level.
3. Make sure to deal with an expert trader at OptionBot who best instruct you as to which trading strategy to use.
4. When you get alerts study the trading chart to see if it fits qualifications for your trading strategy.
5. Place Trades in the Appropriate Direction on your broker accounts.
Make sure to take advantage of the Option Bot trading experts for help and assistance. Start trading with lower investment amounts until you become more comfortable. Only after you begin to acclimate yourself with the system should you begin to raise your investment amount. Keep in mind you have a 60 day money back guarantee so maintain your patience and discipline with the Option Bot strategies.
Option Bot 2.0 Scam
With many of the Binary Options Bots and systems available there is a definite concern that they are actually a scam. Based on our testing and observations, Option Bot is NOT a Scam. They web based software that they provide is a legitimate trading scanner. The alerts they provide are extremely beneficial to virtually any Binary Options currency trader. By integrating multiple trading platforms into the actual interface it makes it extremely easy to take advantage of most of the alerts in a timely and efficient manner.
Week in Review
Investors opted to adopt a cautious stance on the first full trading day of 2015 resulting in global equities recording minor growth. Without the emergence of any distinctive bullish catalysts, their decisions were essentially swayed by further weakness in oil prices and the release of indifferent economic data from the USA. The euro came under significant pressure today forcing it to decline across the board after Mario Draghi, the President of the European Central Bank, advised that action will be instigated soon to combat the persistent threats of deflation and the region’s faltering economic recovery. The foremost US indices crept higher last Friday typified by the Dow Jones Industrial Average climbing by just over 20 points; the S&P500 inching higher by almost 2 points and the NASDAQ drifting upwards by 17 points. read more…
The Forex or foreign exchange market is a global marketplace that does not have a single address or exchange to do business. This is unlike the stock market which has different exchanges that handle the execution of orders for the stocks registered with those exchanges.
Most Forex transactions take place within the Interbank market, which is a comprised of the largest banks in the world. Retail customers cannot participate directly with this exclusive market, but can trade in Forex currencies through either a Market Maker or an ECN. read more…
Money Laundering Laws Apply to Crypto-Currency
The main US Money Laundering Regulator, FinCEN, recently told a Bitcoin trade group that they must adhere to all rules that apply to any financial institution.
This clarified a March 18 ruling by FinCEN stating that several of the layers in the virtual currency business must register as MSB’s. An MSB (Money Services Business) is required to collect information and combat money laundering by any of their customers. The earlier ruling spoke generally of virtual currencies, but the meeting of this week made clear that the rules apply to Bitcoin as well.
“Virtual Currency administrators and Exchangers must register with FinCEN as Money Service Businesses like any other Financial Institution.”
The laws designating an MSB apply to those involved in the transfer or exchange of currencies. A person who buys products with a virtual currency is not an MSB whereas someone who exchanges it for a different currency would be an MSB. The question as to whether someone who mines Bitcoin is not clear. A Minor who goes on to transfer the Bitcoin for a different currency would qualify as an MSB, whereas one who uses the mined currency to buy goods and services probably would not qualify.
Is Federal Regulation Good For Bitcoin?
The official line from the Bitcoin trade group and the head of Bitcoin companies is that they welcome federal regulation as a way to add legitimacy to virtual currency. On the other hand cryptocurrency has become a way to make illicit purchases thus leading to its rapid growth.
Ultimately the success of the virtual money will be in its acceptance as a real currency. The recent ruling in favor of the SEC designating Bitcoin under their jurisdiction and the FinCEN order are crucial steps towards this end. Alternatively government agencies could have used there clout to try and make virtual currencies illegal. By making efforts towards regulation it makes it clear that cryptocurrecies are legitimate forms of money and will be accepted as such for the foreseeable future.
A Free Demo Account is the best way to practice trading. Test the trading platform and your trading strategies without risking any money.
A no deposit practice binary options account is the best way to simulate a real time trading experience. We have the most exclusive up to date list of Binary Options brokers with free demo accounts.
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