For many US traders, finding a binary options broker which allows investing in regular binary options can be particularly difficult. The high-profile withdrawal by many of the large brokers, among the confusion as to whether binary options constitute a legal activity in some states, has made many wary of the threat of prosecution should they open their trading services to US clients. There is, however, some positive news in 2015, with the emergence of some newer brokers who are willing to provide, completely legally, binary options to US residents without any difficulties. Among these, the leading company is the uniquely-named Magnum Options who have sought to provide both a highly reliable and completely unrestricted binary options trading to US citizens.
Why are binary options so difficult to trade from the US?
Due to the stringent gaming laws in the US, and also within individual states, the ability to access binary options as opposed to traditional options contracts is limited. The speculative aspect of binary options has made it difficult for many of the original companies to continue offering their services without the possibility of violating these laws. Those who want to trade anything similar to binary options has the choice of the NADEX index, but this is nowhere near the accessible online binary options brokers available to clients outside the US and represents the more traditional ‘vanilla’ options which are usually reserved for large-capital and professional traders.
For this reason, there is no such thing as a US binary options broker, and there is currently no way to become regulated within the US. This is a shame as it has contributed to those highly reputable, and established brokers, such as Banc de Binary and Traderush, withdrawing their operations from the US. The vacuum left by this has meant that a multitude of rogue and unreliable brokers have popped up to try to offer binary options services but without the insurance that comes with being a reputable company. Whilst some of these may offer reasonable services to their clients, the risks that they pose make it unlikely that experienced traders will want to risk their cash without some form of regulation.
What choices are there for US traders?
The most reputable binary options providers to US citizens are all regulated outside of the US (most notably in Cyprus under CySec) and offer both high-quality and professional services to their clients. Since reputation is everything when dealing within an unregulated market, several brokers are striving to provide the quality service required to encourage US binary options traders that they offer the most reliable investment choice available. Of these, the London-based Magnum Options has made significant headway as a notable front-runner in US binary options. Since its inception in 2013 Magnum Options has steadily developed a reputation as the leading US binary options broker by offering access to over 100 assets and payout rates which exceed 80%.
What makes Magnum Options stand out?
Alongside its impressive asset list and highly-competitive pay-out rate, Magnum options also provides its US traders with a 10% insurance rate on many of the binary options markets it offers. This means that, in the event of the binary options expiring ‘out of the money’, 10% of the original investment will be returned to the traders account. Offers such as this, alongside the availability of instant and local support for US binary options traders have allowed Magnum Options to gain a reputation as one of the best available for US traders. Furthermore, a lack of regulation for companies operating in the US has been countered by the availability of all company information, including the owning group Redtulips Consultants Ltd. which is freely and easily available through their homepage.
There are also several alternative companies offering binary options to US traders and these include Boss Capital and GoOptions. With fairly extensive operations within Europe and the rest of the world, these two brokers also maintain popularity in the US through their heavyweight reputations within the binary options field. However, they cannot be described as specialist in US trading and there is always the potential that large firms will withdraw their operations from the US if any further problems occur. Magnum Option, on the other hand, have entered the US market for the long-term and for this reason alone can be considered the most reputable and reliable US binary options broker of 2015.