Binary Options US-Friendly Brokers
In the United States of America financial instruments have to trade on exchanges. Subsequently it is quite illegal for an OTC-based operator to offer their binary options to US residents.
Binary options US-friendly brokers amount to just the limited number of US exchanges where one can trade binary options. ANY other form of operator that is offering binaries to the US public is doing so illegally.
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.