YES, binary options are completely legal in the USA! Binary options are legal for Americans to use as a financial instrument internationally.
Binary options trading in the USA are governed by CFTC, a regulator which has licensed at least one broker, Nadex to broker exotic options like binary options.
There is currently much debate as to whether the licensing of Nadex should prohibit Americans from doing business with overseas companies who are licensed in their respective jurisdictions as well. For example, if an American wants to invest money through a UK Stock brokerage, they are able to — yet some people think that trading with a UK based binary options company is somehow not legal. Well, in our opinion that’s completely wrong.
Trading binary options in the USA is facilitated by many brokers today. Brokers for binary options are licensed in Cyprus, Belize, BVI, UK, and other jurisdictions using a variety of financial licenses allowing them to take deposits and process withdrawals.
Should I be concerned doing business with an offshore broker?
Absolutely, if you don’t do your research and listen to a trusted opinion. There are lots of shady companies in forex, binary options and so on. In our opinion the best judgement of a binary options broker is to see whether withdrawals are difficult. If they’re willing to part with your money once you decide to take it out, you can be almost assured that a broker will keep paying.
Currently, Binary Options Legal recommends BeeOptions as an internationally legal, trustworthy broker. By now, hundreds of investors have deposited and taken withdrawals from BeeOptions — and thats our measurement of a fair an honest broker. Read our full Beeoptions broker review for more information.