Author: Jacob Bailey
Market Analyst
Jacob Bailey

Binary Options USA

United States Country

Get started trading binary options in the United States with a safe and reliable broker.

Binary trading is not as regulated as Forex or CFDs in America so the restrictions are not as tight as they could be. You'll want to test out a broker first using a demo account and any welcome bonus. After that trading is pretty simple and most people find it a great way to make money on-the-side or even full-time.

In this article, you will learn:

  • The brokers best suited to your needs
  • What local payment methods are accepted
  • Taxes and fees that apply to US residents

Recommended binary Websites Updated: February 2019

Risk Warning / Ad Disclosure

Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain from referring new customers.

Websites You Should Avoid
Boss Capital Logo
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1.0 Blacklisted
Stockpair Logo
Stockpair Screenshot
1.5 Blacklisted
anyoption Logo
anyoption Screenshot
1.4 Blacklisted

Traders in USA

United States Brokers

While binary trading in the US is legal, the government classed options trading as akin to gambling and put in place sanctions and legislation similar to those that govern casinos. This has prevented many international firms from advertising their services and soliciting US traders which has in turn led them to stop accepting new sign-ups. This has restricted the choice of international brokers available to trade with and leads traders to choose a local based broker. This, however, doesn't leave them with much choice.

While it is difficult to find an international broker that accepts US traders, and there aren't many US brokers, there are still some good ones to choose from. With increased regulations, many brokerages have now chosen to move their head offices to locations like London and Cyprus making it hard to find a good USA broker. So, in such a heavily regulated market, what should you be looking for and how do you know which broker to choose? We take a look at some of the things you should be looking out for:

Licensing And Regulation

When something is as heavily restricted as binary options trading is in the US, there will be companies that try and trade under the radar! Exercise caution and make sure you choose a broker with reputable licensing and regulation.

Asset And Trade Types

With a restriction on brokers that you can choose from, you want to make sure that you pick one that offers everything you are looking for. Make sure they offer the range of assets that you are looking for and a variety of trade types.

Mobile Trading Features

Trading on the go has become critical to many of you. Who has the time to be stuck behind a computer in this era of modern technology? Check that the broker offers a mobile app or at least a good mobile trading experience.

Free Demo account

Check out the various demo accounts and the restrictions that apply to using them. Can you use it without making a deposit and is it reloadable? Are you able to carry on using it to complement and enhance your trading skills?

Given the unknown quantity of external brokers and the restrictions of those available to them many people, when faced with a choice, will choose a local broker sadly missing out on some of the great offers available from international sites. Following our recommendations and reviews will ensure that you get a good trading experience whoever you choose to use.

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Broker Fees And Tax

USA law states any profits earned from trading are subject to US tax. The income must be reported as either capital gains or income to the IRS. If you are just earning a small amount, then the money can be declared as income however if it is a large amount then it must be declared as capital gains tax.

Of course, your winnings can be offset by any losses so you must declare the overall income earned taking into account money lost. As brokers aren't classed as casino's they don't have to send the trader a tax form so it is the responsibility of the trader to ensure they declare the revenue in the appropriate tax year.

Aside from taxes there are a few other small fees to consider:

  • Commission for successful trades which will be deducted at source
  • Broker fees for processing deposits and withdrawals using certain payment methods
  • e-Banking platforms tend to charge a small commission for each deposit and certain types of wire transfers will have costs associated with them
  • Currency conversion fees if trading in a different currency

While these fees aren't huge, it is worth shopping around for the best payment providers and brokers that don't charge fees for deposits and withdrawals. Consider making fewer, larger deposits and withdrawals to minimise the set fees.

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American Licencing

Whilst there are some questions surrounding binary options regulation and the legalities of trading we are here to remove any areas of uncertainty and provide you with fact based knowledge. Whilst it is perfectly legal to trade binary options in the USA and for traders to register with any broker it is illegal for offshore companies to solicit traders unless they have a CFTC license.

Because of this difficulty of entering the USA market and the red tape surrounding it many international brokers do not accept US traders with many leaving for countries like England and Cyprus.

There are some big name brokers that are widely known and accepted and that save the trader from having to go looking for an appropriate offshore broker. There are also plenty of CFTC licensed companies that are allowed to trade in the USA that haven't been deterred by the legislation.

Without spending time and effort researching these options though many people tend to stick with what they know. We, however, think that the choice should be there for you to make and so we use our expertise and experience to research the market and bring you the best binary options brokers that are licensed to trade in the US.

Exercise caution and make sure you choose a broker with reputable licensing and regulation.

How we Recommend Brokers

For US traders it can be a lengthy process finding an appropriate broker to trade with. The legislation and regulations mean that you can't just find one that you like the look of and open an account. Not only should you be comparing their offering to that of others but you need to check that they are licensed to trade in the USA.

We understand that you don't have unlimited time to go through a long list of brokers to find the one that offers the best benefits to you then to find that they wont accept your business. To help you and save you much time we have put together a list of recommendations to ensure that you find the best account for you without having to spend hours finding it.

It doesn't matter what country we're reviewing when it comes to binary trading, the USA gets the same treatment. Our recommendations and reviews are based on a number of key points. These include the benefits such as great bonuses, the quality of the signals service, the usability and functionality of the trading platform and the payouts on offer. We have a team of experts whose purpose is to investigate fully the offerings of each broker to find the best US binary options brokers, review them and recommend them to you.

Risk Warning / Ad Disclosure

Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain from referring new customers.

Frequently Asked Questions

United States FAQ

Is binary trading in the USA legal and safe?

It is legal to trade binary options but it is illegal for any company to solicit business and trade unless they have a local license. In terms of safety it is perfectly safe to trade with a reputable broker.

Do I need to pay taxes on my trading profits?

The IRS require that all residents declare income and pay any taxes according to federal law. It is not the responsibility of the brokers to keep a record of traders' deposits and withdrawals.

Can I test brokers before trading with real money?

A demo account is a key feature of any reliable and reputable broker. With a demo account a new account holder can register and take advantage of this demo feature before they have to use their own money.

Is it easy to make deposits and withdrawals?

As long as you have a way to make a deposit like a widely accepted debit card then you can deposit easily. Withdrawls can take between 3-5 days but some sites offer a quicker turnaround.

Can I trade using my mobile or tablet device?

Many good brokers offer a reliable mobile site and an app for iOS and Android. If the broker that you are looking at doesn't offer a good mobile solution then we say avoid them.

Meet The Author
Jacob Bailey
Jacob Bailey
Market Analyst

Jacob has been an author for Binary Options Expert since our launch in 2012. He has over 40 years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations. Learn more.

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