Legal UK Binary Options and BrokersIt’s ironic how binary options, originally an American invention, are more available in Europe including the United Kingdom than in the USA. In the recent years binary options trading has become extremely popular all over the UK. People that have great insight into the world of economics find it very interesting to wager on simple “yes or no” predictions and make money out of it. But, even those occasional traders feel excited when they get into the exciting world of binary options.

However, there is a concern among people in the UK interested in binary options. Binary options is essentially financial betting which makes people think that it’s not legal. It’s a legitimate concern and we want to make it clear with this article. Binary options in the UK are actually legal and well regulated.

This means that traders won’t be prosecuted for trading financial instruments online with brokers that offer legitimate financial binary options trading services. In fact there are many legit UK binary options brokers that operate in the UK under a license that is issued by the governing bodies set up specifically to regulate this.

List of Binary Option Brokers accepting traders from the UK:

Broker Offer Trade Now / Review
1st

Deposit: $10
Payout %: 90%

Trade Now!
2nd

Deposit: $250
Payout %: 88%

Trade Now!
3rd

Deposit: $250
Payout %: 100%

Trade Now!

The UK is considered one of the first countries in Europe to legalize financial betting thanks to being one of the primary countries in forex trading. In order for financial service providers to accept UK traders they need to have a UK binary options trading license, or a license issued in another EU country. However, that country needs to have a licensing system that is considered compatible to the one in UK. Basically, that means all EU countries are compatible.

Frequently Asked Questions

Here you can find everything you wanted to ask but didn’t know where and to whom. We have collected the most frequently asked questions by people from the UK interested in legal binary options. The answers to these questions will give you a clear picture of the legality concerning binary options.

  1. How binary options work?

    Binary options are a form of betting with fixed odds. It’s the reason why they have suffered poor reputation in the past. The difference with standard betting (on sports) is that here you bet on the financial markets instead.

    It’s really simple in essence. Just like in sports betting where you bet if a team will win or lose, here too you bet if an event will happen or not. For example, you are asked if you think that a particular price or asset will go up or down. You choose what you think will happen and you bet money on it.

  2. Can UK citizens trade with the help of non-UK binary options brokers?

    There are also numerous European based binary options brokers that are available to UK traders. Usually these are operating under licenses that comply with the EU or UK standards, very much similar to offshore gambling licenses issued in Gibraltar, Malta etc. all whitelisted by the UKGC. Because of that, many of them are allowed to accept UK traders.

  3. What are the governing bodies in the UK that oversee binary options trading?

    Up until April 2013 it was the UK Financial Service Authority that regulated binary options in the UK. This was disbanded and two new agencies were created and made responsible for the enforcement of the new regulations. These are the Financial Policy Committee (FPC) and the Financial Conduct Authority (FCA). The FCA is responsible for the development of the regulations, while the FPC makes sure that brokers follow the license rules.

  4. Which binary options brokers should be avoided?

    As previously mentioned, there are two options, trading with UK licensed or EU licensed broker. UK laws are in essence compatible with the laws of the EU member countries, so it’s safe to register with such brokers. But, avoid registering at brokers that are neither licensed in the UK nor in an EU country. It’s very likely that such brokers are a scam and not safe. Always look for legit brokers. Find out how further below.

  5. What should I look for when choosing a legal UK binary options broker?

    By choosing a reliable and legal binary options broker you improve your chances of making money. Such brokers usually offer lots of learning resources and tools that can help you improve your understanding of binary options trading. What’s best is that these resources are free. Another benefit is that reliable brokers offer demo accounts too. This way you get to practice your trading strategy and skills before investing money.

  6. How can I find out if a UK binary options broker is authorized by the FCA?

    If you visit the official FCA website you will find a search tool where you can enter a broker’s name and see if it’s actually recognized or licensed by the FCA. You can also enter the firm reference number instead of the name. If the UK broker is not authorized by the FCA, avoid him at all costs.

  7. What is the process for opening an account with a UK binary options broker?

    The registration process involves simple sign up procedure as with any other website where account is needed. Enter your name, surname, address, email and similar info by which you will be identified. However, after this UK citizens are required to provide certain documentation that will serve as identity proof. The first document is submitting a scanned ID, driver’s license or passport. Any of the three will work. The second document is a scanned utility bill, credit card or bank statement as proof of address.

  8. Do UK binary options brokers offer bonuses for depositing?

    Bonuses are one of the many ways in which traders are stimulated into making deposits. As in online gambling, here too bonuses give you a nice boost because you get to trade with more money than initially planned. However, not all brokers offer fair bonuses, which is another thing to keep in mind.

  9. What payment methods are offered?

    UK binary options brokers offer a variety of payment methods that you can use to make deposits and withdrawals. These range from wire transfer to e-wallets like Skrill and Neteller and even bitcoins.

  10. How do brokers make money?

    Brokers make profit either from your losing investment or from a percentage on your win. When you have made an unsuccessful trade, you lose all your money and that money goes to the broker. But if you win, a percentage may be deducted for the services. The percentage is different with every broker and it’s an important aspect to consider when choosing the best UK binary options broker.

What to Remember When Getting Into Binary Options

When starting your career as a binary options trader you have to remember to study and train before jumping into the trading platform. Take maximum advantage of the resources offered by the brokers and the internet to master your skills. Make use of the demo/practice accounts brokers offer. Enlist in online courses. After all, all of this is free and up for grabs!

Furthermore, there are three important aspects to consider when selecting a broker:

Research

The web is rich with information. If you select a broker without properly informing yourself about his reputation and services, then you are a sucker that begs for your money to be taken from you. Read what others have to say and consider everything.

Read the Fine Print

Every broker has his own set of rules and conditions. We know that reading the fine print can be a tedious task, but it can save you all kinds of trouble. Spare several hours or the entire day to get to read the terms and conditions of the brokers you are considering.

Money

It’s important to find out which broker offers the best conditions in terms of money and fees. Some require fees upon withdrawal, while other prior to trading. Anyway, it’s best to find out how big the fees are and if they suit your pocket.

The Future of Binary Options

Now when binary options trading has become a well-regulated market and everyone is perceiving it a lot clearer, we can say that the future is bright. It’s expected that binary options will grow exponentially in the UK in the following years.

The advantage of the UK is its open-mindedness towards binary options as it is towards other forms of betting. It’s the main reason why it’s the leading country in the world in both things. Good regulations as those in the UK serve as an example for other countries.

This proactive stance has helped in making the UK binary options market a well-oiled machine. More and more interested consumers appear and plenty of legitimate operators are set up. The overall equation has all the important components for a good binary options future.