Top Binary Options Brokers Reviews, Strategies & Trading Signals › Forums › Binary Options Trading Forum › Trading Platforms and Software › Binary Options, and Legality
This topic contains 1 reply, has 1 voice, and was last updated by PIPING 2 years, 7 months ago.
August 16, 2013 at 7:04 pm #1752
Hello! Im a trader in the US, and ive heard alot of different things about alot of different companies. One thing that strikes me as interesting is that no 2 sites agree on the legality of trading options in the US, in regards to regulations. So here I am. I had heard that US traders can ONLY trade options in companies that are CFTC regulated. Is this true? I currently use Finpari as my platform (not for long, and ive seen the few complaints lying around. I havent withdrew anything yet, so i cant input.), and they are NOT CFTC regulated. Does this mean I need to cease trade with them? If it is, what is the risk of getting caught? What reprocussions would I face?
binary trading for us in the US is tricky. It is not illegal for you to trade with an offshore broker, but it is illegal for them to market and sell financial products to you... a loophole for sure. Some allow us to trade, others don't. There are a lot of scams out there but not all are scams. The best choice for you is to use NADEX. It's not quite the same as the offshore brokers but much safer, your money is guaranteed safe and you have the backing of the CFTC and SEC to protect you, you don't have that protection with an offshore broker. these two links are must reads. http://www.binaryoptionsthatsuck.com/review/nadex-suck/ http://www.binaryoptionsthatsuck.com...by-step-guide/
So I personally cannot get in trouble? Ive been doing alot of research lately, and heres where Nadex isnt an option. Finpari has an option where i can deposit an amount an get 10% back a month, a fixed income account. I have the money to deposit, but that is where Legality becomes an issue, as well as finpari's trustability. What are your thoughts on doing this, and your thoughts on finpari as a company?
No. The trader does not get into trouble. Some regulators are after brokers that solicit people in countries where they are not licensed. By the way, that's not a fixed income account. I think you misread. What it says is: "Trader gets 10% from all negative trades back to his trading account. This feature may be activated upon preliminary request with consequential payouts decrease." It means that you get 10% from the trades you lost. So if you lost 100 you may get 10$ back BUT then your payouts decrease. "with consequential payouts decrease". You will earn less on each trade. So this is not a savings account. You are not going to get 10% a month. Also, I'm pretty sure there are some strings attached: "This feature may be activated upon preliminary request" I haven't heard good things about Finpari by the way.
If you go to their deposit page, and click on at the top where it says Trading account or Fixed Income account, it details the way it works there. Ive seen the complaints against them as well, and actually contacted them personally about their "regulated" status, their response to me was "We follow all regulations from all countries we do business in, but because we are an international broker, we are not regulated by the framework from any one country." This statement to me, was a damned joke.