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  1. #1
    Rookie Member

    The legality of u.s. Residents trading with off-shore brokers !!!

    If you look at the bottom of the page on this website you will find the following:

    "Please take notice that any unregulated trading acitity by U.S. Citizens is considered unlawful. Trade at your own risk."

    However, others tell a different story:

    http://www.binaryoptionsblacklist.co...ns-in-the-usa/

    http://www.optionsadvice.com/usa-brokers/

    Thoughts?

  2. #2
    Veteran Member Ammeo's Avatar
    If the broker is regulated by the CFTC be it onshore or offshore then i dont think there is any problem. it is up to the trader to choose a proper CFTC regulated broker.

  3. #3
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    What I understand from a few articles read from different sources, to offer binary options to u.s customers, either a broker must be regulated under CFTC or they must not offer commodity options.

  4. #4
    Active Member rongold's Avatar
    Quote Originally Posted by M.J View Post
    What I understand from a few articles read from different sources, to offer binary options to u.s customers, either a broker must be regulated under CFTC or they must not offer commodity options.
    Nice explanation from the binaryoptionsblacklist.com I also think that there are two possibilities for the US citizens to trade binary options – either with CFTC regulated broker, which is very rare till now, either with offshore broker which don’t offer commodity and currency options.

  5. #5
    Rookie Member
    Well it needs additional clearing of these statements. I hope soon all the US residents will be able to trade freely binary options. For the moment there is great disadvantage to all of the US citizens. Most of the world top brokers didn’t offer account opening to people living in the US. I know there are some brokers which offer accounts but that is not enough. There is substantial need for regulations and opening the binary world to US traders too!

  6. #6
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by wallstreet View Post
    Well it needs additional clearing of these statements. I hope soon all the US residents will be able to trade freely binary options. For the moment there is great disadvantage to all of the US citizens. Most of the world top brokers didn’t offer account opening to people living in the US. I know there are some brokers which offer accounts but that is not enough. There is substantial need for regulations and opening the binary world to US traders too!
    The new CFTC warning issued recently in conjunction with charges against BDB state that it is in fact illegal for non regulated by the CFTC and SEC to offer off-exchange options (of any kind) to U.S. citizens.

    http://www.cftc.gov/ConsumerProtecti..._binaryoptions

    The warning describes unregistered security sales of stock (non sec registered binary stock options) and the use of non exchanges listed commodity options. After reading this U.S. citizens should use off shore brokers at their own risk because regardless of the brokers integrity they will likely be shut down to the U.S. Try NADEX, they are pretty cool.

  7. #7
    Rookie Member
    I looked at Nadex and opened a demo account but am pretty overwhelmed right away by the "points" and the "bid size" and also not being able to choose the expiry. It seems as though everything I have been learning is foreign to the Nadex system.

    Some brokers who used to be legal for US now do not accept US traders....others claim to be regulated and are not...is there any way to tell which are legitimate and legal for US traders?

    Thank you for your help!

  8. #8
    Specialist Member runneroption's Avatar
    NADEX is good broker and it is regulated in US, but some of its features are not the best fitted for active binary options traders. I think that there is no problem if some offshore brokers allow us residents to trade with them. The US law only says that trading with such companies is at their own risk. They couldn’t stop you to trade if you want so.

  9. #9
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by runneroption View Post
    NADEX is good broker and it is regulated in US, but some of its features are not the best fitted for active binary options traders. I think that there is no problem if some offshore brokers allow us residents to trade with them. The US law only says that trading with such companies is at their own risk. They couldn’t stop you to trade if you want so.
    If you read the latest press release jointly delivered by the CFTC and SEC it clearly states that marketing binary options to U.S. customers is illegal....but you are right, there are still some good brokers allowing U.S. traders to trade but I am sure that will come to an end eventually. I like NADEX, it has a lot of flexibility and you can sell credit positions.

  10. #10
    Legendry Member Michael Hodges's Avatar
    You can choose expiry. nadex offers several intraday expiry's, daily and end of week as well. Take a little time to familiarize yourself and I think you will like what you find. I have some great articles about NADEX on my blog which you can get to through the "introducing binary options businesses" thread.

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