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Thanks. I hadn't heard of Nadex and will check it out. Sadly it isn't available to Canadian residents. I wonder if there are any other choices that are regulated and fully collateralized with no counter-party risk.

I have an account with Interactive Brokers and the only way I seem to be able to trade options on forex is to use options on futures contracts. I know that FX option liquidity is highest in the OTC market. But is there any progress on letting retail traders like myself trade FX options on spot...