Which Binary Options Brokers are Accepting US Traders?
Why are we talking about which brokers accept US traders? This is because the way the binary options market operates and the way it is viewed by the regulators and other operators in the market creates a kind of dichotomy in the market.
By law, US companies and individuals are subject to a form of taxation that is unique, and are bound by the provisions of the Patriot Act. The taxation system in the US provides for taxation of all income made by US citizens nationally and internationally, and this covers all forms of investment including binary options. Foreign companies who provide investment services for US citizens are required by law to make disclosure to the IRS on any investments held by US citizens for purposes of enforcement of this law. This law, the Foreign Accounts Tax Compliance Act (FATCA) provides penalties for defaulting companies. As such, many binary options brokers would rather not do business with American citizens than face any complications arising from this provision. This means that more than 80% of brokers in the binary options market place are not US-friendly brokers.
For a broker to be considered US-friendly, it means that the broker in question must have taken steps to ensure compliance with FATCA by providing the necessary tax forms as part of account opening, and taken other steps to make them compliant with the Patriot Act and other provisions of the tax laws.
Which Binary Options Brokers Might Accept US Traders Today?
Nadex is now one of only two outfits that the US trader can legally turn to for trading binary options. All other websites that will take US traders are most likely scam operators and definitely do NOT have regulation.
Nadex is a US-based binary options exchange that allows traders to deal directly in the market. To open an account with www.Nadex.com, a trader needs to supply his Tax ID number or US social security number. This restricts usage of Nadex to just US residents and US citizens, and therefore makes this broker the topmost US-friendly binary options broker.
There are a few other US-friendly binary options brokers, but these are the best of the lot and you can easily choose from these ones.