New Regulated US Binary Options Exchange on the Horizon

BinaryOptionsNow | Published on April 24, 2013 at 2:52 pm

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BinaryOptionsNow –¬†Global financial service provider Cantor Fitzgerald LP announced the imminent launch of a new US binary options exchange that will become available for North American customers. The new binary options platform will intend to become a direct competitor to renowned binary broker NADEX.

This news comes after in February this year the US CFTC approved the company’s subsidiaries Cantor Clearinghouse as a registered Derivatives Clearing Organization (DCO) and CantorExchange as Designated Contract Market (DCM).

The new binary options trading service portfolio will be offered though the CantorExchange subsidiary. At this moment it appears that the new binary options exchange will use a platform that’s very similar to the regular CantorExchange online trading platform.

At this moment it’s not certain when the new binary options exchange trading service will be offered and what type of clients will be targeted. However, it appears that the minimum first deposit amount required by the broker will only be $100. This means that the company will intend to target retail clients instead of institutional clients.

A New Competitor to NADEX Emerges

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Based on the minimum first deposit amount of just $100 it can be concluded that Cantor will be focusing on retail clients. This means that the company intends to go head to head with market leader NADEX (North American Derivatives Exchange).

Cantor will be the first major and serious competitor to NADEX due to the fact that not many brokers are at this moment regulated in the country. Due to the very strict US financial regulations most binary options brokers are unable to successfully apply for a license.

However, most companies continue to operate from outside of the US. Inside of the US however, NADEX was pretty much the only provider of binary options trading that was also regulated and licensed by US authorities.

Now with the imminent launch of the binary options trading services by Cantor, NADEX will risk losing a substantial market share. The competition between the two companies will in the end be a good thing for traders because the two companies will be determined to develop better services.

Binary Options Exchange Trading

Binary options exchange trading is a special type of binary options trading. Unlike in regular options trading, in exchange trading traders aren’t betting against the broker. Instead, in exchange trading traders will bet against each other. An exchange broker will generate revenues by charging a commission on the money invested by traders.

As such, from a broker’s perspective it’s irrelevant if traders win or lose. Each time a trader loses another one will win. The money lost by a losing trader will not go to the broker but to another winning trader. For this reason, exchange trading is preferred by some traders believing that it offers a safer trading environment than traditional binary options trading.

About Cantor - Cantor Fitzgerald
Cantor Fitzgerald, L.P is a major international financial service provider that was founded in 1945. The company serves more than 5,000 institutional customers around the globe and has over 8,500 workers in more than 20 countries.

The company’s subsidiary, CantorExchange, is an internet based financial service provider that focuses mostly on retail clients. Due to Cantor’s huge experience in the business, the new binary options exchange service is expected to become very popular and successful in the US. - Cantor Fitzgerald

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