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  1. #1
    Active Member Kius's Avatar

    US Traders: Help With Deposits? !!!

    Hi there, all! It's been a while since I've been around, but now that I have some more free time, I was hoping to get back into BO, and to actually trade real money, instead of the demo account stuff. My question is simple: how do you deposit your funds? I've ran into problems before, depositing money into poker accounts and the like, so I'm assuming there is a similar issue here, as all these brokers seem to be overseas.

    So, any advice on how to deposit? Thanks in advance!

  2. #2
    Rookie Member
    Kius,

    Which trading platform are you using?

    US residents have had challenges depositing funds with Binary Options brokers for quite some time thanks to the Dodd-Frank Reform and Consumer Protection Act designed to protect US citizens/residents from gambling or overtly risky investments. Historically, the CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association) only authorized a limited set of brokers a license to accept US based traffic. At this time there was an additional set of brokers that would continue to accept US traffic even though they were not authorized by the NFA.

    This year… due to FATCA (the Foreign Account Tax Compliance Act) the cost of compliance and penalty fines for failing to report US citizens’ global financial transactions to the IRS annually incurs great risk and cost to financial institutions. Due to FATCA many global banks and financial institutions are no longer accepting US citizens as clients. FYI: The cost for a small to medium sized institution to be compliant is about 20 Million dollars. The penalty fines for failing to report properly are astronomical. As such there are numerous Binary Options platforms that six months ago would have accepted US citizens abroad or US based traffic that will no longer do so.

    Regrettably due to all these changes you may have to switch to one of the few platforms that is willing to accept US citizens or residents.

    Now majority of Binary Options compliance departments require a copy of a Government issued ID and copy of a utility bill to authenticate an account. It isn’t surprising that many of the Cyprus based Binary Options platforms no longer accept US citizens or US traffic due to the fact that Cyprus signed a Model 1 FATCA agreement with the US Treasury Department that went into effect on the 22nd of April 2014.

  3. #3
    Specialist Member marvel's Avatar
    That is very detailed and helpful information for all US traders. Unfortunately now it is much more difficult for US traders to find good broker, after almost all of the EU regulated brokers stopped trading with US clients.

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