Binary options are legal in the United States, but not all brokers are considered to be welcome. This isn’t because of the service that they offer being bad, it’s because of shady operating practices, usually centered around reporting taxes. You may have seen in the news events like this unfolding–this is typically why.
But there are many binary option brokers that are completely okay for U.S. traders to use. Some of these include Goptions (www.goptions.com) and BossCapital (www.bosscapital.com). These are both fairly new sites, but they have already established themselves as leaders within this industry. Binary options as a whole are pretty new themselves, so do not let the fact that a site is only a few years old throw you off. All of them will be like this because it is a newer type of trading. Still, there are sites that have been able to separate themselves from the crowd and establish themselves as being much more reputable than the others.
So, what should you be looking for when selecting a binary broker to use? Once you establish the fact that the broker you are using is legal and reputable, then there are a few other things that you need to focus on. The big thing to consider is whether or not you will be making a profit. This is a broad category and covers many things. The easiest ones to take into account are the rates of return being offered, the underlying assets to choose from, and the customization choices you will be given. As technology grows, and as this industry gets bigger in the United States, different types of options are emerging. You have your typical short term call and put combo to choose from, but there are now super short term options, such as the 30 second and 60 second trade, the boundary and one touch options, as well as longer term options, too, sometimes up to one month in length before the expiry comes to term.
Next, you need to find a combination of these things that works for you. Getting an 81 percent rate of return is great and all, but it means nothing if you are not given an opportunity to maximize your chances of being correct. If you have a constant 81 percent rate of return being offered, but you are only right 60 percent of the time, you are going to be making less money than if you had the same amount of trades at 75 percent return, but you are right 85 percent of the time. Likewise, if you can make the same number of correct trades in a week as you can in a year, then the week is certainly the more profitable venture for you since you will be able to make more than 50 times more in profits this way.
There’s a lot to consider, as you can see. Luckily, you don’t have to limit yourself to just one broker if you do not wish to. As long as all of the brokers you are focusing on are legitimate in the U.S., you can trade some assets on one broker, and some assets on another. This can actually be a very good strategy if one broker has a better rate of return on a favorite asset of yours to trade. The bottom line is that you want to make as much money as possible when trading, and if you need to take a step like this to do so, then you are doing the right thing.
The U.S. government is always taking steps to improve the security of the markets–and this will inevitably lead to tighter restrictions on binary options. This is still off in the future, though, and right now, this market is very wide open for competition. You benefit from this, but it means you need to do some homework. Having many brokers will bring in scammers and ripoffs, and by no means do you want to get involved in this. Instead, focus on just the best brokers who offer demo account and make sure you are getting the most out of your money.