It's fun to do Forex trading in the US lately, either as a trader or a broker. You know what I mean – all those charming rules and regulations, the NFA messing with brokers
... It actually comes as a surprise when I hear there's someone who actually wants to be regulated in the States.
I guess that Banc de Binary must be very brave to make this attempt: as of yesterday, the American binary options broker has entered into negotiations with the Commodity Futures Trading Commission (CFTC). The goal is to have binary trading regulated in the US. This would legitimize binary options as a financial instrument and give more credibility to companies that offer binary options trading. It would also bring security to traders – after all, we all feel safer having some legislature to lean on when putting our personal finances at risk.
Of course, considering the fact that Banc de Binary recently made the news with its decision to open a new headquarters in Cyprus and get the CySEC license
, the desire to be US-regulated is understandable. In fact, it sounds fairly reasonable to me. The part I find more interesting, though, is that Banc de Binary will not be allowed to accept new US customers
for as long as negotiations last. Previously registered
account holders and foreign
customers will retain full access to all services
, of course. So, it was fine to open an account before the regulation talks, but it is forbidden now. It almost seems like requesting specific legislation to legalize a binary options in the good old US of A has more disadvantages than it has benefits, doesn't it?
Nonetheless, the decision to operate only in regulated countries is commendable. Especially since it would also help turn binary options into a legalized financial product and will improve its image – which is good news for binary traders. It just seems sad that a company has to move all the way to Europe to get its regulation (for the time being, Cyprus is the only country acknowledging binary options as a financial instrument, and Japan is working on such a regulatory framework), and its own country seems reluctant to assist it in legalizing a trade that, when all is said and done, is both profitable and popular.
About Banc de Binary
Banc de Binary is a privately held trading and investment firm operating out of the USA, regulated by CySec. The broker’s binary option services are powered by SpotOption – one of the largest binary options platform providers. It allows trading in a number of option types: Digital Options Pro, the Option Builder, the One Touch Platform, the 60 Second trading platform, and BinaryMETA.