So You Want To Trade Binary Options As A U.S. Resident, First Know The Commodity Futures Trading Commission (CFTC) & The Commodity Exchange Act & Regulations (CEA)
Commodity Futures Trading Commission (CFTC)
The Commodity Futures Trading Commission was created in 1974 with the enactment of the Commodity Futures Trading Commission Act. Prior to this, futures contracts for agricultural commodities were traded in the United States for over 150 years and since 1920, under Federal regulation. The (CFTC)’s mission is to promote integrity, resilience, and vibrancy of the U.S. derivatives market through sound regulation. (Bold emphasis added.)
You can visit the (CFTC) website directly here.
The Commodity Exchange Act (CEA)
The Commodity Exchange Act (CEA) regulates the trading of commodity futures in the United States. It establishes the statutory framework under which the Commodity Futures Trading Commission (CFTC) operates. Under the (CEA) the (CFTC) has the authority to establish regulations that are published in title 17 of the Code of Federal Regulations.
Binary Options Brokers Who Use Arbitrage Services
There are a lot of binary options brokers who offer arbitrage services that allow you to trade binary options. Some of these arbitrage services are located in countries outside of the United States of America. Some U.S. residents opt to trade using the arbitrage services that are in these countries, however, if you live in the United States of America your binary options broker should be registered in the United States of America. You want to trade legally and ethically. You don’t want to be intertwined with, caught up in, or connected to an off shore broker that could possibly get you in legal trouble because they aren’t following U.S. Regulations and requirements and indirectly you, whether you are aware of it or not, would not be following U.S. Regulations and requirements.
You Could Lose All Of Your Money With An Off Shore Broker
Another reason why you want to use a U.S. based broker is, you could lose all of your money. Without regulation to protect you and your funds you could lose everything you invested and gain while trading with an off shore broker. You want to be at ease while trading and know that your investments are regulated and you want to profit.
U.S. Binary Options Brokers
You can check whether a broker is registered with the (CFTC) in the United states BEFORE you trade. You can actually check registration and backgrounds before you trade. This can be done by visiting the NFA BASIC database to check. You can get there directly from a webpage on the CFTC’s website here.
Per the CFTC,
Before working with any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, verify that the entity is properly registered with the CFTC. The Commodity Exchange Act requires certain firms and individuals to be registered with the (CFTC). Registration and examination of intermediaries is conducted on behalf of the (CFTC) by the National Futures Association (NFA) under the supervision of the (CFTC).CFTC Commodity Futures Trading Commission
With a check via NFA BASIC database, you receive registration, disciplinary or regulatory history, and financial information.
Here are some U.S. Based Brokers that are NFA Member Approved
TD Ameritrade Futures & Forex
TD Ameritrade Futures & Forex LLC
The best way to use this site is to enter the name of the Broker that you want information for and it see what results that you receive.
Non US Based Binary Brokers
These are some Non US Based Binary Brokers. The list is not all inclusive. They are not apart of the (CFTC) and are off shore brokers. They may be regulated with an International Broker or a broker for their country.
Commodity Futures Trading Commission | http://www.cftc.gov
National Futures Association| https://www.nfa.futures.org/basicnet/
Bridget Denise Webb