Is It Legal To Trade Binary Options

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Mexico’s derivatives trading market, which includes binary options trading, is still in a nascent stage, albeit with bright prospects. Although political developments in the US have a meaningful influence on all markets (stock, currency, commodity and derivatives markets), the Mexican economy is gradually integrating into the global value chain.

Markets in Mexico are also driven by crude prices, with the country being the world’s ninth-largest oil producer.

IQ Option is one of the most advanced and modern platforms for trading binary options in Mexico developed by a group of leading analysts, professional traders, and IT-specialists. You can trade a variety of assets and also IQ Option platform supports a few types of options.

Trade during normal market hours or even 24/7, trade from anywhere – any PC with an internet connection or IOS or Android mobile device. Low minimum deposit amount ($10) and low minimum transaction ($1) make this binary options trading platform really attractive for anyone who is willing to try trading binary options in Mexico. IQ Option supports many local currencies and languages and you can enjoy the best binary options trading experience in such a beautiful country as Mexico is.

There is a potential profit of up to 91% in the case of correct prediction. Read our IQ Option review to find out more about this amazing broker.

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The global financial crisis of 2008 highlighted the shortcomings of financial authorities in safeguarding risks in the derivatives market. Mexico’s over-the-counter binary trading is a case in point, where uncertainty and lack of information posed significant risks to traders. Binary trading in Mexico has benefited in recent years from initiatives undertaken by the G20. The Group of 20 is an international forum of governments and central bank governors from 20 countries, namely Mexico, Argentina, Brazil, the US, Canada, the EU, the UK, France, Germany, Italy, Turkey, Saudi Arabia, South Africa, Russia, China, India, Indonesia, Japan, South Korea and Australia.

The G20 urged all OTC derivative transactions to be reported to TRs (trade repositories), making ample data available for risk analysis and decision making by market participants.

“By 2020, Mexico’s banking and securities regulator published new rules to regulate the derivatives market, both to promote transparency and bring about order in the market.”

This has been critical in promoting Mexico’s binary options trading, the majority of which is still transacted over the counter, rather than through exchanges.

Trading Platforms

Brokerage firms in Mexico offer trading platforms based on MetaTrader 4 and 5 for binary options trading. However, the trading platform itself could be a proprietary one, specific to a brand or a brokerage.

For instance, Murex offers a platform called MX.3 and MexTrade Capital offers Markets Trader. As we told, the IQ Option has its own amazing platform, so you don’t need any additional platform.

Deposit & Withdrawal Options

Here’s a look at the most commonly available modes of deposit and withdrawal for binary options trading in Mexico not just with IQ Option broker:

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

  • Electronic fund transfers: interbank and intrabank fund transfers in Mexico are processed by the SPEI and CCEN. While the country’s central bank owns and operates the former, the latter is operated by a private owner, CECOBAN.
  • Payment gateways: Payment gateways such as PayPal are also accepted in Mexico. This is usually a safe method since such accounts are linked to bank accounts, which makes it simpler to verify the broker and the trader. In fact, the Mexican government encourages the use of electronic means of monetary transactions, rather than cash or cheques, in an attempt to make the system more efficient and transparent.
  • Online banking: Internet banking has emerged as a convenient way to make transactions, even on the go, without having to rely on payment gateways or plastic money. Direct transfer and deposit of funds can be done to an account online.
  • Credit & debit cards: While the multinational Mastercard, Visa and American Express cards are popular in Mexico too, issued via the country’s banks, such as BanCoppel and Banco Azteca.
  • Cheques: While this form is acceptable, it takes much longer to be processed than all the other forms mentioned above. Which is why most people prefer other means of deposit and withdrawal, rather than cheque-based transactions.

Deposit methods at IQ Option platform for Mexican people.

Binary options trading in Mexico (FAQ)

Here are answers to some of the most frequently asked questions that users have about binary options in Mexico.

  • Are binary options legal in Mexico?

Yes, they are legal. They are beginning to be increasingly regulated, providing greater transparency into the transactions. It is not, however, an organized market yet.

  • Is it safe to trade binary options in Mexico?

While it may be safe to trade binaries in Mexico, the fact that it is still at a nascent stage and unorganized could result in uncertainties. Best to research the broker you wish to trade with. Always trade with regulated brokers like the IQ Option.

  • Can I make money with binary options in Mexico?

Yes, of course! For example by trading Mexican peso. The Mexican peso is highly volatile and offers opportunities to record profits. However, one needs to make highly informed decisions and trade knowing the risks involved. But, there are hundreds of instruments you can trade, not just the peso (facebook shares, gold, silver, etc…)!

Start trading with IQ Option today!

Broker Bonus Min Deposit Payout Review Open Account
FREE DEMO ACCOUNT $ 10 Up to 100 % !* Review Trade Now! *in case of correct prediction
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK

Author

More about the author J. Pro

Unlike Stephen (the other author) I have been thinking mainly about online business lately. I wasn’t very successfull with dropshipping on Amazon and other ways of making money online, and I’d only earn a few hundreds of dollars in years. But then binary options caught my attention with it’s simplicity. Now I’m glad it did because it really is worth it. More posts by this author

Nadex is a US CFTC-regulated Exchange

Binary options are legal and available to trade in the US only on a CFTC-regulated United States exchange. Nadex is designated by the Commodity Futures Trading Commission as a Designated Contract Market and Derivatives Clearing Organization. The CFTC is a US government agency overseeing futures, options and swaps trading. Its mission is to protect market users and the public from fraud, manipulation, abuse, and systemic risk.

Some online binary option providers may not be properly registered and regulated. They are based outside the US, operate outside US law, and may hold member funds in various types of offshore accounts. They cannot legally offer binary options to retail customers in the United States.

Trade all the markets you love

The Difference Between an Exchange and a “Broker”

As a CFTC-registered Exchange and Clearinghouse, Nadex adheres to regulations including:

  • Nadex matches buyers and sellers and does not participate in trades
  • Nadex holds all member funds in segregated accounts in top-tier US banks (Fifth Third Bank, BMO Harris Bank)
  • Nadex’s gets its income solely from exchange fees, not from taking positions in the market

Make an Informed, Safe Choice

If you are a US resident trading binary options with an offshore “broker” or “provider,” ask your broker some tough but fair questions:

  • Are they based in the US and is it legal for them to solicit customers in the US? (Hint: it’s not.)
  • Do they hold customer funds in segregated accounts in top-tier US banks? Can you withdraw your funds at any time using the web or mobile app and receive a wire or ACH transfer right away?
  • Do they ever take the other side of a trade to fill a customer’s order? Do they ever profit because a customer on the other side lost?

Nadex is an exchange that matches our members’ buy orders opposite other members’ sell orders. While one of Nadex’s multiple market makers is an affiliate of Nadex, Nadex itself does not engage in any trading on the exchange and does not give any trading advantages to its affiliated market maker. Our primary function is ensuring that all trades are executed fairly and in compliance with US law, and safeguarding our members’ funds.

Experience a different way to trade.

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I am not a Lawyer and by no means is this any type of legal advice but just searching thru the CTFC and SEC web sites this is what i have gathered, if I am wrong please correct me.

Yes, binary options trading is legal in the United States. There are at this moment no laws both on federal and state level that forbid US citizens from trading binary options online. The financial trading market is regulated and supervised by the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission. However, these organizations are very unfriendly towards brokers operating from outside of the US.

The CFTC and the SEC have the task of supervising the financial service market of the United States. The current rules of the SEC and CFTC allow companies and financial service providers to legally offer binary trading services to United States citizens.

These organizations are also tasked with awarding valid licenses to safe financial service providers. Licensed brokers are obliged by the law to respect traders’ safety and security. If a broker breaks the strict rules and regulations imposed by these organizations, then it will lose its license and risks heavy fines and even prison sentences on its owners.

However, binary options trading (and financial trading in general) laws are extremely restrictive in the US, meaning that authorities are only willing to offer licenses to a selected few of genuine USA companies such as NADEX. At this moment, no offshore broker has a license in the US.

This however does not mean that offshore brokers are illegal in the US. Offshore brokers are in reality not even subjected to US laws, meaning that traders are allowed to register at brokers of this kind. Sure, authorities and operators like NADEX might not like this but they have no legal means of prohibiting traders from trading at offshore brokers and offshore brokers from accessing the US market.

The biggest disadvantage regarding the binary trading laws in the US is the fact that they’re not very friendly towards offshore traders. Unfortunately US policy in regards to financial services is extremely protectionist and as such national regulators are not that keen on awarding licenses to offshore companies, even though those companies fulfill all licensing criteria.

USA Friendly Binary Options Brokers
There are basically two types of online trading brokers in the US. The first category is that of offshore brokers that are licensed most commonly in European Union jurisdictions but fulfill all regulatory criteria and safety standards imposed by the laws of the United States. The second is that of binary options brokers located in USA.

The largest category of financial trading brokers that accept USA traders are those that are located and licensed in offshore jurisdictions. While located in other countries than the US, these companies still respect all the laws and regulations imposed by the US CFTC. This way the CFTC kind of tolerates their presence (because it has no legal means of prosecuting them) even though it has not awarded them a license.

In most cases, these brokers are licensed in a European Union member state and as such already follow a strict set of guidelines and regulations that most of the time are even stricter than those in the United States. So, trading at an offshore licensed broker is actually a better idea than trading at a broker located in the US.

Most European brokers also offer much better services than genuine US binary options brokers. This is because the diversity of the European market is much bigger than that of the US. Due to the fact that the CFTC only licenses a limited number of genuine US brokers, the internal competition is extremely weak.

Again, I’d like to point out that trading at brokers that are licensed elsewhere than the US is perfectly legal.
Brokers that are located in the US

At this moment there’s only a limited number of genuine USA based companies that offer binary trading services. This is not because only small number of operators manage to successfully apply for a license, but because the current binary options laws in the USA aren’t yet that well established.

It’s however expected that in the near future the US would implement a new set of laws and regulation that would enable the CFTC to award much more licenses to both domestic and offshore companies. Once this happens, all those USA binary options brokers that at this moment operate from Europe will most likely instantly receive a US license as well.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

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