A First Look Review Of Binary Options At Cantor Exchange
Now there is another choice for CFTC regulated binary options. Cantor Fitzgerald has extended it’s offerings for U.S. traders by adding binary options to it’s portfolio. Through it’s subsidiaries Cantor Clearing House and the Cantor Exchange CFTC regulated binary options are available. This market place has been around for a little while but has only recently moved into binary contracts. The Cantor Exchange is a Designated Contract Market and operates alongside and the Cantor Clearing House.
- Cantor Exchange – The Cantor Exchange is a Designated Contract Market certified and regulated by the CFTC. This makes it one of only a few U.S. regulated binary options markets. The Cantor Exchange operates a marketplace for buyers and sellers to meet and trade options. The exchange enforces rules and regulations, provides the trading platform, matches buyers and sellers and supervises all actions of market participants.
- Cantor Clearing House – is another subsidiary of Cantor Fitzgerald and is a Registered Derivatives Clearing Organization. As the clearing organization for the Cantor Exchange it is responsible for settling all trades made on the exchange. The Cantor Clearing House is the equivalent of the OCC used by other U.S. derivatives exchanges.
Exchange Versus Broker
The Cantor Exchange is a binary options exchange, not a broker. This is important to understand. European style, off-shore, CySEC and other types of binary options brokers are not the same. When trading on the Cantor Exchange you are trading with other traders, not the house. When you are trading binary options with an off-shore broker you are betting against the house and you know what they say. The house always wins.
In order to trade on the Cantor Exchange you have to be a member. Memberships are easy and available to U.S. residents (I’m not sure but I think Canadians are welcomed as well). After filling out the online application memberships are processed within a matter of days. Members are referred to as Individual Trading Participants and have access to all the available options. The platform is online, web based and also on mobile. Web based traders will have to have Adobe Flash. Mobile traders can use iOS or Android operating systems. Since their focus is primarily for mobile traders that platform is much better than the online version. In addition, membership in the exchange is open to non-U.S. traders as well so they can also benefit from CFTC regulated binary options.
Cost Of Trading On The Cantor Exchange
Trading on the Cantor Exchange is easy. The minimum deposit is only $100 and the fees are low, really low when compared to the percentages kept by off-shore binary options brokers. Each trade costs a mere $0.90 per contract/lot. If you trade at market price there is no fee but I don’t recommend this. You may save the 90 cents but you may lose more than that on trade execution. If you place a limit order and it executes at market then you still save the 90 cents and have protected yourself from a wildly moving market. Closing a trade is just as inexpensive. Out-of-the-money options will expire and incur no fees. In-the-money options cost $0.90 to close and at-the-money options cost only $0.45. Other than that the only other cost of trading is an account fee for inactivity. If you don’t trade for 2 months it will cost you $2 per month for account maintenance.
Withdrawals From The Cantor Exchange
Withdrawals are super easy on the Cantor Exchange. Because it is a U.S. based and CFTC regulated binary options exchange your money is always available. Withdrawals can be made at any time and are only limited to the normal banking hours. A request made today processes the next business day. Minimum withdrawal is $100 or the account balance, whichever is lower.
Trading On The Cantor Exchange Platform
Trading on the Cantor Exchange Platform is good. The exchange has several intra-day expiries available. At this time the exchange is limited to three assets so it may not be as attractive as NADEX or an off shore broker in that respect. Currently the exchange has options on three currency pairs and that’s it. The pairs are EUR/USD, GBP/USD, and USD/JPY. These are the three top traded currency pairs so for now that’s OK for now. According to my sources within the exchange they are planning on expanding their product offering in the fall. Just exactly what that means is still unknown but any additions to the list will only make Cantor Exchange better. Expiry is also a bit limited at this time. They have options ranging from 5 minutes to end of the day. These will suit most binary options traders just fine unless they use a longer term strategy as I do.
For More Information Click Here To Visit The Cantor Exchange
Cantor Exchange Scam
Cantor exchange is not a scam. It is a licensed and regulated binary options exchange operating in the U.S. As an exchange regulated by the CFTC it must match buyers and sellers together and allow market pressure to dictate prices. It is still possible to lose a lot of money making bad trades but that does not make Cantor Exchange or binary options a scam. The exchange makes it money by charging a set fee for each transaction, not a percentage of the traded amount like off-shore binary options brokers. Withdrawals can be made at any time and are not impacted by minimums, maximums or fees.