Navigating Regulated Binary Options Brokers: A Comprehensive Guide
As of my last update, the U.S. Securities and Exchange Commission (SEC) does not regulate binary options brokers directly. Instead, binary options are typically regulated by the Commodity Futures Trading Commission (CFTC). However, the SEC has warned about the risks associated with trading binary options and the prevalence of fraud in this market.
How to Find Regulated Binary Options Brokers
To find a list of regulated binary options brokers, you can check the following resources:
CFTC Website
The Commodity Futures Trading Commission (CFTC) maintains a list of registered firms and individuals. You can visit their website to find information about regulated binary options brokers. This website is a reliable source for ensuring that any binary options broker you consider is properly regulated.
National Futures Association (NFA)
The NFA is a self-regulatory organization for the U.S. derivatives industry. You can use their online tool to search for NFA member firms that may offer binary options. The NFA provides additional oversight and ensures that any broker offering these services is subject to regular reviews and audits.
Broker Reviews and Directories
websites that specialize in financial broker reviews may also provide lists of regulated brokers. Make sure to verify the regulatory status of any broker you consider. These reviews can provide valuable insights into the reliability and legitimacy of the broker.
State Regulators
Depending on your state, local financial regulatory authorities may have additional information about licensed brokers. Check with your state’s securities or banking authority for more information.
Regulated Binary Options Brokers in the U.S.
In the U.S., there are only two approved regulated exchanges: Nadex and Cantor Exchange. The reason for these exclusions is multifaceted. First, it helps prevent tax leakage going overseas. Second, it supports Wall Street firms that run the CFTC, which might have conflicts of interest.
These two exchanges, Nadex and Cantor, are the primary reason why scam brokers exist due to the greed of these firms instead of working with other countries to prevent online fraud. The SEC, which focuses on securities exchange, does not oversee futures regulations, which further complicates the regulatory environment.
Expert Advice on Investment Options
While binary options can be a speculative investment, it is important to consider other, more robust options such as regular long-term options (LEAPS) on conservative stocks. Investing in IBM, ATT, or Kroger can be more secure and potentially more profitable in the long run.
For example, my Dow Jones options portfolio has seen a 143% return in 3.5 years, with half of the investment in cash. This approach can provide both growth potential and a safety net.
If you are interested in learning more about this strategy or getting a free book and newsletter, feel free to email me at
In conclusion, while the regulated space for binary options is limited, exploring other investment vehicles such as LEAPS on conservative stocks can offer better and more secure returns in the long term.