Best US Binary Option Brokers in 2017

With that in mind, our list of binary option destinations recommended for US traders must begin with regulated exchanges. Some might say it has to end with them too, but there are in fact a few brokerages out there, getting by in a legally grey area, which also peddle binary option trading services to the US public. Let’s not cut ahead of the chase though and take a closer look at NADEX, CX (Cantor Exchange) and the CBOE (Chicago Board Options Exchange) first.

As you may have noticed, all these “institutions” are called exchanges, rather than brokerages and there’s a good reason for that. Unlike CySEC-regulated binary option brokers, these US-based and focused exchanges do not trade against their own clients. According to what can essentially be called the “CySEC business model”, brokerages currently operating within the EU and in other non-US jurisdictions, act as their own, sole price-makers. What this means is that the broker establishes the pricing on the underlying commodities, after which it essentially goes up against its own customers. If you think trading against someone on a playing field the rules of which you yourself establish isn’t particularly fair, you are right. The European way of trading binary options has long been frowned upon, even by local financial authorities. US authorities have been very categorical in their refusal to allow the proliferation of this binary option business model within their own jurisdiction.

The US model, used by NADEX, CX as well as the CBOE, is the exchange-based one, where traders act as price-makers, and where all the back and forth happens among traders. Whenever a trader closes a position in the money, another trader ends up out of the money, on the other end of that same proposition. This way, the NADEX-type binary option game could be called a zero-sum one, were it not for the commission the exchange cuts on every binary option trade.

While it is focused on the US market, NADEX is actually accessible to European traders too. It isn’t really surprising though that those used to the single market-maker model will find NADEX’s exchange-based approach a little confusing at first. What one needs to understand about NADEX is that its pricing is shaped by the proven mechanics of supply and demand. The profits on a single trade are always capped, since upon expiry, a binary option is worth either exactly $100, or $0. There is no middle ground. Before expiry, options can obviously be sold for different sums between $0 and $100, depending on the likelihood of success. To increase profit potential at NADEX, one can purchase several options in one go. The minimum required deposit at NADEX is $100.

With the exchange-based business model, liquidity is always an issue. Since they are responsible for the pricing, traders represent a valuable resource for binary option exchanges in more ways than one. If there’s lack of trader interest in a specific type of underlying asset, pricing will simply be unavailable, which means that even those specifically looking to trade that asset will be denied.

While NADEX is focused on retail traders, CX brings a different sort of approach to the table. By offering an exchange-based platform to technology providers, they are looking to bring CySEC-based binary option actors into the US fold, by granting them access to the market, as well as to the technology needed to implement the US business model. The tradable asset-wise retail offerings of CX are currently not overly impressive.

The CBOE is aimed at US traders first and utmost. It is a physical exchange, so trading binary options with the CBOE is only possible through a US -based broker. In theory, international brokers approved for US option-trading can be used for this purpose as well.

Finpari is a non-US brokerage that offers binary options to US-based customers. The Finpari model is not the above-described exchange-based one, and as such, it cannot offer 100% returns on winning trades. The Finpari returns are in the 80-87% range. The minimum deposit at Finpari is $250. This broker is not regulated.

Another non-exchange binary option solution for US traders is MarketsWorld.

MarketsWorld is regulated by the financial authorities of the Isle of Man. The minimum required deposit with this broker is only $10, and the minimum trade amount has been set to $1.

What To Expect From Your Binary Options Broker

Binary options trading is very profitable, especially when you know how to go about the process. Whereas you remain responsible for all trading, a binary options broker offers assistance to make the entire process easier for you. The brokers generally offer you the tools that you need to be successful in the trading and you might want to consider getting one, especially if you are just starting out in the business. Here are some of the things you can expect your broker to do for you under the trading platform.

1. Help in choosing trading platform

In binary options you can use different platforms for your trading just like it is the case with other kinds of trading. Your broker will help you select the most suitable platform depending on the program you have decided to sign up with. Not all programs are supported on all devices, hence the importance of selecting a path that works for you so you keep frustrating issues minimal.

2. Assistance in selecting trading assets

Binary options come with a number of trading assets that you can choose from. If you are new to the trade, then a binary option broker will come in handy in helping you select the right assets for the kind of trading you have in mind. This saves you from the trial and error sessions that can be costly. By analyzing assets, you get recommendations for the best so your chances of making more money are increased.

3. Help with payments and sign-ups

The starting process is very important and when working with a good broker you will have it easy signing up with the right platform and even dealing with the first deposits into the account to get you started. New traders often get confused on how to go about the process, but with the broker by your side the process is made swift and easy.

4. Link between you to the market

Your binary options broker is generally the link between you the trader and the market. They accept deposits and issues payments. It is the work of your broker to collect profits resulting from unsuccessful trades and they ought to also limit the amounts. Proper research and analysis is needed for profitable trades and your trader should have what it takes to increase your success rates.

5. Excellent customer service

The broker is like your guide through the process and for this high level of customer service is essential. As a trader you should get all questions answered promptly and all technical problems addressed too. The broker is responsible for providing you with all necessary tools so you are able to make informed investments. Other things that your broker can help you include determining the rate of returns so that you have chances of making more money with your trades. Find out what services your broker offers before trusting them with your binary options investments. It is also important that you work with a broker you easily get along with.

Tips on Choosing the Best Binary Options Broker

The world of finance and trading is fast paced and can be very confusing to the untrained person. Whilst trading in Binary Options is one of the simplest methods it can still be confusing if you don’t understand what you are doing. One way of getting round this is to choose a good broker who can help you through the process.

Choosing the right broker is a difficult task. There are so many of them and each offers a different level of service. So how do you go about choosing the right broker for your needs? Most, if not all Binary Options trading is carried out over the internet so this is the place to start.

A simple search on the internet will bring up lists of hundreds of different brokers. The first thing to look at is the web interface each broker is using. It should be simple, easy to understand and user-friendly. If you can’t navigate around a particular broker’s site then don’t use them. You could wind up losing money rather than making it.

After you’ve narrowed down your choice of brokers you should start to look at what security and privacy they have in place. They are dealing with your money after all and should have the most secure measures and firewalls in place to protect your money and your personal information from hackers and identity thieves.

The next thing you should look at is what level of support does the broker offer? You should be able to contact your broker easily, via telephone, email and live chat. And you should be able to get up to date information from them regarding on-going trades. If you can’t or they can’t explain to you what is happening in easy to understand language then don’t use them.

Minimum deposit and trade levels and maximum pay-outs are an important factor in choosing a good broker. Some brokers offer no minimum deposits so obviously these would be good brokers to look at, especially if you are not intending to invest large sums. Maximum pay-outs are important. Look for a broker that offers a minimum of 75% to 90% pay-out and also look at those who offer a rebate on trade losses. Some will offer between 5% and 15% rebate if your trade loses.

Take a look at what payment options they offer. A broker is no good to you if they only accept credit card payments and you don’t have one. Look for one that offers a range of methods like PayPal, bank transfer, debit and credit card, etc. In conjunction with this look for one that has a variety of withdrawal methods available. Again, it’s no good if they only a withdrawal method of paying into PayPal if you don’t have an account.

There are many things to look for in a good broker, these are some of the more important options you should consider. A good broker works for you, not against you and is in the business of making money, both for you and for themselves.