The point of social trading is to share knowledge and that is the point of this industry update. There are changes happening in the world of binary options, I’m here to help you keep up with what they are.
SpotOption Is Slowly Closing Doors For US Based Traders
CherryTrade has just announced that they will no longer be accepting traders from the US. The move is a surprise to both us and them but is the latest sign of SpotOptions foray into the US marketplace. SpotOption is working with Cantor Exchange to provide CFTC approved binary options but the change is slow in coming. What this means is that over the next few months we can expect to see more and more SpotOption based brokers who also accept US traders shut their doors to them.
Why? All part of the regulatory process most likely. For SpotOption to be approved and regulated by CFTC they will have to prove compliance on many fronts. For now, there are only two places to trade CFTC regulated binary, NADEX and Cantor Exchange, and both are significantly different from the traditional European style binary options on the market today. There are still a few brokers out there accepting US traders including CTOptions and Tradorax, each built on unique platforms.
TradeThunder Is Booming On The Scene
TradeThunder is a newer broker booming on the scene. They are accepting US traders so they are an option for traders who need to move from a SpotOption broker. It is built on the Leverate BX8 platform and comes with tons of features. Leverate, FYI, is the same company behind a well-known forex platform and the BX8 platform is based on all their years of experience. The company is owned and operated by LGK Industries, LTD with headquarters in London, England. They offer 40%-100% bonuses with minimum deposit of $200. If you don’t want a bonus minimum deposit is $20. Other bonuses for social traders are refer a friend and risk free trading, risk free requires a deposit of $5,000.
The platform is pretty trippy but packs a lot into one screen. A demo account is available for traders with no deposit required. The asset is pretty long but they only have call/put trading, no one touch, range or other. Expiry is also limited to 60 seconds, 5 minutes, 15 minutes, 30 minutes and 60 minutes. This really isn’t a problem for day traders but will exclude longer term swing traders. They have so far proved themselves trustworthy, a full review is in the works.
New KYC/AML Procedures Require Prompt Verification
Brokers have always required verification of accounts in order for traders to make withdrawals but now those rules are getting tougher. There has been no change to requirements, you will need proof of ID, proof of address, proof you are the owner of any credit cards or bank accounts deposits are made from. What has changed is how the brokers are enforcing these rules.
In the past it was possible to use a credit card to deposit and begin trading within minutes, you really weren’t required to verify your account unless you wanted to make a withdrawal. Now brokers are requiring prompt verification, some are even requiring it before you are allowed to begin trading. What’s been happening with some brokers is that new accounts are being traded but if they aren’t verified within 3 days of opening the money is refunded back to it’s origination. What this means for social traders is that now it is even more important than ever to have all your proofs ready before opening any new account, and send them in as soon as you do.