Is Pocket Option Legal in the US? (What You Need to Know Here)

As an options expert, I’ve tested countless options brokers. However, Pocket Option has always stood out because of its customer-centric experience. Let’s look at whether you can use it in the US.

Is Pocket Option Legal in the US?

Technically, you’re allowed to use the Pocket Options site in the US. You can access some of its services, like the demo trading account and affiliate program.

However, while Pocket Option claims to be licensed, the regulator it purports to have is outside the list of top-tier regulators recognized by the SEC (Securities and Exchange Commission) and needs to be registered with the SEC, too. Therefore, it’s not clear how to facilitate traders in the US.

You can access Pocket Option and create an account in the US, but you shouldn’t use it to trade as it is against the terms and conditions, and you may be subject to Section 6.6 of the Terms and Conditions outlined in the image above.

You can trade with it, but you may be subject to reimbursement in the event that they get fined for violating the law by letting you trade.

Can People in the US Use the Pocket Option?

You can access Pocket Option and register an account in the US. However, you should just use the demo trading account. You can also join the affiliate program, which allows you to earn money by recommending other traders to the platform.

It is against the Terms and Conditions to trade in the US mainly because it doesn’t follow Commodity, Futures Trading Commission (CFTC) regulations. The CFTC is the governing body that regulates binary options trading in the US.

Nevertheless, American traders have been trying to find ways around the issue.

Using a VPN

If you want to trade options on Pocket Option in the US, using a Virtual Private Network (VPN) could be a loophole to trick the network into thinking you’re in a different location.

However, it’s important to note that Pocket Option actively monitors user activity. Therefore, unless you use a capable VPN and remain careful, you might leak your IP, revealing your actual location to the platform.

If Pocket Option learns that you’re trading with real money in the US, you risk losing your account and your funds being frozen. Therefore, using a VPN to trade is a risky strategy.

Additionally, depending on your withdrawal or deposit method, you might have difficulty passing KYC (Know Your Customer,) which often requires you to provide proof of address.

For example, if your VPN shows you’re in India, you might need proof of residence, like a passport or an ID, to make a deposit.

Proxy Servers

Some traders also use proxy servers outside the US to trade on Pocket Option. While VPNs are owned mainly by large corporations and assign you a random IP address every time you log in, proxy servers are owned primarily by the user and have a consistent IP address.

For instance, you can ask a friend in Pakistan to buy you a server and host it there. You’ll then access it remotely from the US. The consistent IP address reduces the possibility of an IP leak.

However, proxy servers are often slow and costly. And eventually, you’ll run into the KYC verification problem.

Therefore, the risks of bypassing Pocket Option’s trade restrictions outweigh the benefits. You should find alternative trustworthy trading brokers regulated in the US.

It’s also important to note that Pocket Option is restricted in the US as a location. Therefore, you can use it in a country that allows trading on the site.

Where Pocket Option Doesn’t Work

While Pocket Option is one of the most popular trading platforms, it’s restricted in some countries. Below are all the countries that Pocket Option isn’t allowed to serve (but you can use it):

• The United States.
• The United Kingdom.
• Belgium.
• Germany.
• Austria.
• The Netherlands.
• Hungary.
• Greece.
• Finland.
• Italy.
• Croatia.
• Spain.
• Lithuania.
• France.
• Slovenia.
• Japan.
• Bulgaria.
• Ireland.
• Denmark.
• Poland.
• Latvia.
• Israel.
• Czech Republic.
• Cyprus.
• Greece.
• Portugal.
• Malta.
• Luxemburg.
• Sweden.

The countries above have restricted Pocket Option’s services for two main reasons: consumer protection and lack of regulation.

In the EU and other countries, high-risk investments like binary options trading are considered gambling. As a result, options trading platforms like Pocket Option need to be regulated by a local authority.

Similarly, in the US, options trading platforms should be regulated by the CFTC or another reputable regulatory body recognized by the SEC.

Pocket Option is regulated by the Mwali International Services Authority and the International Financial Markets Relations Regulation Centre (IFMRRC.) These regulators need to be more stringent to allow the platform to conduct trade in the US, UK, EU, and other strict countries.

As a result, the Terms and Conditions will only allow you to register an affiliate or demo trading account in those countries. You can use the demo account to improve your strategies by trading with virtual money in real market conditions.

You can still access the trading features if you are a US resident, but you must reimburse them in the event that they are fined for the violation.

On the other hand, you can use the affiliate account to create custom links and post them to Facebook, Instagram, your blog, and other forums to encourage new traders to join the site. You’ll earn a commission whenever an active trader registers an account with your link.

Who Regulates Pocket Option?

Pocket Option claims to be regulated by the International Financial Markets Relations Regulation Centre (IFMRRC.) It also has an international brokerage license from the Autonomous Island of Mwali, Comoros Union.

However, despite sounding fancy, the IFMRRC is not as reputable as the UK’s Financial Conduct Authority (FCA) or the US Securities and Exchange Commission (SEC.) It’s not recognized by many financial regulatory bodies worldwide.

Additionally, industry watchdogs like Scamadviser are skeptical about the IFMRRC’s legitimacy for several reasons.

For starters, if you searched for IFMRRC on Google, you’d find a similar site called FMRRC, which has been pulled down at the time of writing. Scamadviser notes that it suspiciously had the same description as IFMRRC on its homepage.

IFMRRC also doesn’t disclose its regulatory powers, structure, or track record on its website, which means it could just be a non-existent authority that scammy platforms have made up to show that they have some regulation.

However, despite not being regulated by a reputable authority, Pocket Option is not a scam. It’s built a track record of trust and reliability and has millions of clients worldwide.

Where is the Pocket Option Popular?

While Pocket Option is banned in many countries, it’s also the go-to binary options trading site in many others. Here’s a list of some of the countries that accept Pocket Option’s services:

• The UAE.
• Thailand.
• Nigeria.
• Pakistan.
• South Africa.
• Vietnam.
• Indonesia.
• Serbia.
• Chile.
• Nigeria.
• Columbia.
• China.
• South Korea.
• India.
• Turkey.
• Russia.

The list above contains only a few of the many countries that accept Pocket Option’s services. You will likely have access to all Pocket Option services outside the US, UK, EU, Israel, and Japan.
However, Pocket Option is available in most countries because their financial regulation authorities are unconcerned or haven’t decided what to do about online trading platforms.

Therefore, new regulations might shrink the list or force Pocket Option to get additional regulation.

Final Words

While Pocket Option is a reputable binary options trading site, US trade laws require it to be regulated by a reliable authority. Therefore, you can’t trade on the platform if you’re in the US.

Some traders understandably look for workarounds like using VPNs and proxy servers to access Pocket Option services on US soil. However, that breaks Pocket Option’s terms of service, giving the platform the right to withhold your funds.