Binary options are 100% legal for US clients. Certain binary option brokers restrict what assets US customers can trade. One broker doesn't allow US customers to trade Forex assets, but USA traders can trade all other assets like stocks, indexes, commodities, etc.
There are many brokers who do not accept US traders though. At USABinaryOptionsBrokers.com though all brokers accept USA traders with US bank accounts. There are only a small number of brokers who accept US traders, but DO NOT accept US bank accounts. They require a foreign bank account to transfer money for deposits and withdrawals. That broker is optionFair and is not listed here as a broker for USA binary option traders.
Who Is Trading Binary Options?
Binary Options is new so the people who are trading this intrument are the early adopters. People that are already familiar with trading stocks and options. Also trading binary options are the disenfranchised US poker players who haven't had a place to play online. Binary options as well as stock market trading is a high skill activity where a trader can study and apply different strategies for a positive long term outcome.