It’s no secret that the binary options industry has always operated within a grey area. We as traders are forced to deal with scams, rip-offs and manipulative binary options brokers because we have little choice.
Until binary options is completely regulated and traders are given a wall of protection with federal oversight we have few choices in which brokers we use, and this is especially true for binary options traders based in the U.S., who are extremely limited in who we can do business with.
As the binary options industry continues to grow, so do the number of brokers offering their services to U.S. traders.
Here’s a list of the most trustworthy binary options brokers that accept U.S. traders in 2016.
Marketsworld has been around for some time now, and I have personally been with this broker for a number of years, since 2012. MarketsWorld became my fallback broker after 24options kicked their U.S. traders to the curb after the whole CFTC debacle.
MarketsWorld offers the lowest minimum deposit in the industry, a mere $10 will get any trader started with a live account. A minimum $1 is required for each trade. One of the main benefits of trading binary options with MarketsWorld is that they use their own proprietary trading platform, which is a plus for me because I absolutely hate the generic ‘spot options’ platforms that so many brokers use.
This broker also offers interesting expiry times for trades, which include 2-minute expiries, 5-minute, 10-minute, 15-minute, 1-hour, and end of day expiry times. Unfortunately, MarketsWorld does not offer 30-second or 60-second options, and while this may be unfortunate for speed traders who love to gamble on these time frames, 30 and 60 seconds is not how I like to trade personally.
Even though I have used MarketsWorld for several years with little to no problems, the broker comes with its downsides. First off, MarketsWorld is located on the Isle of Man, Great Britain where the company is regulated. The problem with regulation on these small islands is that ‘regulation’ can be interpreted how they see fit.
Another downside is that MarketsWorld has a small list of tradable assets. Eleven currency pairs and gold.
And while I have never had any problems with MarketsWorld, there are a few complaints about the company on sites and forums like Binary Options Edge, so check those out before you make a deposit. If you do decide to take MarketsWorld for a test run, start out with a small minimum deposit of $10 to $20 and get familiar with the platform until you develop enough confidence in the broker to deposit a larger amount.
TradeThunder is the new broker on the block and I just have to say: I’ve had a lot of fun trading on the TradeThunder platform. It is hands down one of the best binary options trading platform’s I have ever used!
TradeThunder’s platform is based off Leverate’s Bx8 Forex platform. It is not only the most visually appealing platform in the industry, it is also extremely easy to use, comes with one-click trading, and offers over 80 tradeable assets. From currency pairs to major stocks, indices and commodities, TradeThunder offers an extremely diverse portfolio developed with ease-of-use in mind.
And while I can talk about how cool the platform looks all day, it does have its issues.
Issue #1 – Scrolling through their list of assets can be annoying. For some reason, the list lags as you scroll through the assets, and it can take awhile to find the asset you’re looking for. If you’re a speed trader who loves 30 and 60 second options, this can be a problem for you, but for me personally since I don’t trade those super short time frames, I can look past this issue.
Issue #2 – The timing on the trades are weird. Most brokers lock out when a trader can enter into a trade after a certain period of time has passed and the expiration gets closer. For some reason, Tradethunder uses their own methodology. The result is that a 5 minute option can in reality only last two minutes. A one hour expiry can really be a trade that last’s 25 minutes, and so on. It really comes down to timing, so you have to be extra cautious when you enter a trade and make sure you understand exactly when the option will expire.
Both of these issues are small, and because Trade Thunder is a relatively new broker, I’m sure they will be fixed. Regardless, I still highly recommend this binary options broker to U.S. traders.
TradeThunder’s minimum deposit is a mere $20 and their minimum size trade is just $1. I’ve used TradeThunder extensively since they came out in early 2015 and I’ve had an unusually fun time trading binary options with them.
They offer, 5-minute, 15-minute, 30-minute, 60-minute and end of day expiry times. While this might feel limiting to some binary options traders, less is always more in any type of trading.
I’ve never had problems trading binary options with TradeThunder.TradeThunder is based in Anguilla, which is a series of islands and islets located in the Eastern Caribbean. Anguilla is British overseas territory.
But don’t let this prevent you from trying TradeThunder out! It’s a good broker with an awesome platform, and I hope and plan to continue trading with this binary option broker for the foreseeable future.
If you’ve ever looked up binary options brokers for U.S. traders, you have probably heard of Nadex. Nadex stands for North American Derivatives Exchanges, and is one of the most appealing binary options brokers for U.S. traders for one simple reason: regulation. Nadex is the only binary options broker that is fully regulated and overseen by the Commodity Futures Trading Commission (CFTC.)
Nadex offers a free demo account with plenty of educational material. This brokers tradeable assets include 10 currency pairs, 8 stocks, 7 commodities, and of course, Bitcoin. Nadex’s minimum deposit is only $100.
Nadex also offers a mobile trading app as well as two types of accounts. Their expiry times are some of the most diverse in the binary options industry, and range from short term contracts that can last anywhere from 5-minutes to 2-hours, as well as daily contracts that expire at the end of the trading day.
Nadex even takes it up a notch and gives binary options traders the ability to make trades that expire at the end of the week! This type of weekly trading can be extremely effective for experienced Forex traders who can easily anticipate the coming weeks price movements.
Nadex is also one of the very few brokers who offer event-based contracts, that is, making trades off economic events such as the non-farm payrolls.
The downside to trading with Nadex is the fact that they’re one of the few brokers who charge a commission fee for every trade made, which is .90 cents per trade opened.
All-in-all Nadex is considered one of the elite binary options brokers for 2016, and even though this regulated broker is headed in the right direction, there is a massive demand for more regulated, U.S. based binary options brokers.
CTOption is one of many binary options brokers who came up in 2013 during a time when binary options trading was on the rise. Since then, and after achieving the feat of servicing clients in over 90 countries, CTOption has seen a healthy dose of positive customer reviews and testimonials.
Like all of the binary options brokers in this list, CTOptions does accept U.S. traders, and is located in Kingstown, which is the capital of Saint Vincent and the Grenadines, which is a large island located in the Eastern Caribbean.
CTOption separates itself from other brokers through a number of ways. Their proprietary trading platform, they have their own signal service called Binary Bug, they have their own Replicator service, which is essentially an in-house social copy trading service, and they even offer accounts specifically made for Islamic traders who are required to follow Sharia Law.
CTOption offers around 60 popular assets, including currencies, stocks, commodities and indices. Their trade types include, traditional Call and Put, One Touch, and Range Trading. The percentage return of each asset depends on the asset, with some offering returns as high as 91%, CTOption also offers 5% returns on trades lost for certain assets. So If you place a Call on EUR/USD and price drops at the expiry time, you get $5 back!
CTOptions minimum deposit is $250, including 250 Euro’s and 250 Pound’s.
Opening in early 2014, PorterFinance is another new binary options broker that caters to higher-end clients. Owned by Running Forest Partners LTD., PorterFinance is located in London, United Kingdom. A nice alternative to the popular island method. Technically Porter Finance is not regulated, but in the short time they have been in the binary options industry they have developed trust in traders and already established a positive reputation within forums and trading communities.
Is PorterFinance a scam? Based on research, no. This broker demonstrates a detailed understanding of regulatory laws and has consistently stayed compliant with the rules. If you haven’t already noticed, most binary options brokers fall under one of two categories, which are: Regulated brokers who do not accept U.S. traders and non-regulated brokers who do accept U.S. traders.
PorterFinance’s terms and conditions state: “USA citizens are restricted on this trading platform from trading currencies and commodities due to U.S. regulation by the CFTC.”
This is the correct, not often seen interpretation of CFTC’s guidelines for U.S. traders trading binary options. The majority of brokers don’t understand what this means! Since U.S. traders can legally trade binary options, PorterFinance can allow trader from the U.S. to use their services while still abiding by USA laws. So in short, yes, PorterFinance does accept traders from the U.S.
PorterFinance’s minimum deposit structure begins at $200 all the way up to $5,000, depending on the type of trading account selected. They offer an extremely diverse asset index comprised of major stocks, currencies, commodities and indices.
The benefits of trading with PorterFinance are: you can trade through their mobile app, and you also have double up, rollower and buy-me-out features available to traders to help control and minimize risk. To help manage risk even more, you can make trades with as little as $10. Like a few other binary options brokers, PorterFinance has their own in-house social copy trading platform that allows you to make the same trades as the pro’s and reap the benefits.
The downside to trading with PorterFinance is that they charge a $30 fee for wire transfers, and while the first withdrawal of the month is free, any succeeding withdrawals come with a $30 fee.