Are Binary Options Legal in the USA?
Binary options are attractive
financial options in which there are only two possible
outcomes which can either be all or nothing at all. The
payoffs through binary options can take place with some
fixed monetary amount of some asset or it will be
nothing at all. The binary option can be of two types
and these are cash or nothing and the asset or nothing
binary options. In the former option, some fixed amount
of cash is paid and in the latter option the value of
the underlying security is paid. The other terms used
for binary options are Digital options are Fixed Return
options.
Now let's see if the binary options are legal in the USA
The binary options trading are very much legal in the
United States of America contrary to the much confusion
these days. Important thing to know is that there are no
federal or state laws that speak against the
participation in trading binary options online. US
Securities and Exchange Commission and US Commodity
Futures Trading Commission regulate and supervise the
trading market of binary options. Both the organisations
allow the financial service providers to offer binary
services options to the citizens of United States of
America.
Binary options trading laws are quite strict and in case
the financial service providers break these then they
may lose their license, may face jail time and even may
have to pay heavy fines but the laws are only restricted
to USA which means that offshore trading can be done
with legal offshore brokers since these do not come
under the US laws. There is no legal rule which can
prohibit the traders from trading at any offshore
broker.
The offshore brokers must be licensed and regulated
legally by some recognized offshore jurisdiction. These
are generally licensed in European Union Members State
and follow strict guidelines and regulations and hence
are considered pretty safe and therefore are also
accepted by US CFTC. Trading at brokers which are
located elsewhere other than US is absolutely legal as
well as safe and therefore the US traders do not have to
worry about it.
Binary options trading laws are quite strict and in case the financial service providers break these then they may lose their license, may face jail time and even may have to pay heavy fines but the laws are only restricted to USA which means that offshore trading can be done with legal offshore brokers since these do not come under the US laws. There is no legal rule which can prohibit the traders from trading at any offshore broker.
