The general answer to the question above is yes, but brokers that want to provide service worldwide must offer legal and valid terms and policies to the monitoring organizations. Options Trading is regulated in many countries, including the United States, the United Kingdom, Germany, Canada, Japan, etc.
Monitoring Organizations of Legal Trading Options Platforms
- Commodity Futures Trading Commission (CFTC),
- National Futures Association (NFA),
- Securities and Exchange Commission (SEC)
- Financial Industry Regulatory Authority (FINRA).
- Currently, the Options brokers that are approved by the organizations above are regulated, and trading with them is safe.
Is Options Trading Legal in the USA?
Many Options Trading brokers try to attract costumers from the United States without the permission of the monitoring companies. It is the traders’ responsibility to be cautious about where to invest. The American investors should trade with regulated brokers, which are permitted to provide service to the traders from the US.
Are Options Trading activities Legal in Islamic Countries?
Options Trading is prohibited in some Islamic countries by religious experts because they think that it is against the Islam rules. Moreover, some Options Trading brokers offer a special type of account called Islamic Trading account, and they claim that this type of account is according to the Islamic rules. Overall, some other Islamic experts do not call Options Trading activities taboo(Haram), and the Muslim traders can use Options Trading brokers to make a trade and earn money.
It is also noticeable that some countries such as New Zeland and Australia have changed their rules, and according to the new regulations, using unlicensed brokers to trade is illegal. The citizens must only use the companies which are regulated by their local government.
