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:

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  • 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!

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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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A Guide to Trading Binary Options in the U.S.

Binary options are financial options that come with one of two payoff options: a fixed amount or nothing at all. That’s why they’re called binary options—because there is no other settlement possible. The premise behind a binary option is a simple yes or no proposition: Will an underlying asset be above a certain price at a certain time?

Traders place trades based on whether they believe the answer is yes or no, making it one of the simplest financial assets to trade. This simplicity has resulted in broad appeal among traders and newcomers to the financial markets. As simple as it may seem, traders should fully understand how binary options work, what markets and time frames they can trade with binary options, advantages, and disadvantages of these products, and which companies are legally authorized to provide binary options to U.S. residents.

Binary options traded outside the U.S. are typically structured differently than binaries available on U.S. exchanges. When considering speculating or hedging, binary options are an alternative—but only if the trader fully understands the two potential outcomes of these exotic options.

Now that you know some of the basics, read on to find out more about binary options, how they operate, and how you can trade them in the United States.

U.S. Binary Options Explained

Binary options provide a way to trade markets with capped risk and capped profit potential, based on a yes or no proposition.

Let’s take the following question as an example: Will the price of gold be above $1,250 at 1:30 p.m. today?

If you believe it will be, you buy the binary option. If you think gold will be below $1,250 at 1:30 p.m., then you sell this binary option. The price of a binary option is always between $0 and $100, and just like other financial markets, there is a bid and ask price.

The above binary may be trading at $42.50 (bid) and $44.50 (offer) at 1 p.m. If you buy the binary option right then, you will pay $44.50. If you decide to sell right then, you’ll sell at $42.50.

Let’s assume you decide to buy at $44.50. If at 1:30 p.m. the price of gold is above $1,250, your option expires and it becomes worth $100. You make a profit of $100—$44.50 = $55.50 (minus fees). This is called being in the money. But if the price of gold is below $1,250 at 1:30 p.m., the option expires at $0. Therefore you lose the $44.50 invested. This called out of the money.

The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss, compared to letting it expire out of the money.

A Zero-Sum Game

Eventually, every option settles at $100 or $0—$100 if the binary option proposition is true and $0 if it turns out to be false. Thus, each binary option has a total value potential of $100, and it is a zero-sum game—what you make, someone else loses, and what you lose, someone else makes.

Each trader must put up the capital for their side of the trade. In the examples above, you purchased an option at $44.50, and someone sold you that option. Your maximum risk is $44.50 if the option settles at $0, and so the trade costs you $44.50. The person who sold to you has a maximum risk of $55.50 if the option settles at $100—$100 – $44.50 = $55.50.

A trader may purchase multiple contracts if desired. Here’s another example:

  • NASDAQ US Tech 100 index > $3,784 (11 a.m.).

The current bid and offer are $74.00 and $80.00, respectively. If you think the index will be above $3,784 at 11 a.m., you buy the binary option at $80, or place a bid at a lower price and hope someone sells to you at that price. If you think the index will be below $3,784 at that time, you sell at $74.00, or place an offer above that price and hope someone buys it from you.

You decide to sell at $74.00, believing the index is going to fall below $3,784 (called the strike price) by 11 a.m. And if you really like the trade, you can sell (or buy) multiple contracts.

Figure 1 shows a trade to sell five contracts (size) at $74.00. The Nadex platform automatically calculates your maximum loss and gain when you create an order, called a ticket.

Nadex Trade Ticket with Max Profit and Max Loss (Figure 1)

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

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