Last Updated: 7th October 2021.
Is binary options trading legal in UK has become a popular question many of our users asked these days?
As a result, I have decided to create this article to answer all you need to know about binary options trading in UK.
The truth is binary options are really great and so many people have been finding success with it in the UK recently.
The successful people are seeing makes binary options go from their previous bad reputation to a very good one that many people want to tap into.
As sounds as sweet, you might have heard about Binary Options in the UK, there is also a downside to it which am going to show you in this article.
I will also explain what binary options are in detail, the overview, and the best recommended Binary Options brokers in the United Kingdom.
Overview Of Binary Options In The UK
The binary options have been existing far way back from the year 2008 when it was first introduced publicly as a tradable asset in the Chicago Board of Exchange.
Lots actually happened when it was launched, from cards crashing in the financial market, mortgage crisis in the US, and lots more. This makes them tag 2008 as the year that will not. be forgetting in the human industry.
As Binary options gains more exposure and build its users database, it was then introduced to the United Kingdom (UK).
However, as of the time, it was introduced, its reputation was very poor because people believes it is much of a betting game. (More on this later).
It continues like years after years until recently that it started gaining more and more exposure because people are finding success in the binary options even though it is a game of chance.
As of late 2018, the European foreign exchange market relators have strictly prohibited the act of selling binary and digital options to retail investors in the EEA.
And the United Kingdom (UK) is also included among the prohibited countries of selling binary options to retail investors.
Furthermore, the regulatory made it clear that only professional clients/accounts are permitted to trade binaries with the regulated firms.
So it means if you must trade binaries in the UK as a professional trader, there are 3 criteria you need to meet up to.
However, if you are able to meet 2 of the 3, you are still good to go.
- Have a trading capital of up to £500k or own a portfolio
- Have deep experience in the complex trading instrument
- Open at least 10 trades of significant size per quarter
To make it more simple, the above-listed outline is what a broker needs to meet up to become a standard profession.
By not meeting up to the requirements and you trade with them.
You stand yourself at high risk of losing your money and that is after the fact that binaries are risky.
But don’t worry, we have gone into deep research.
And cover the top best 5 forex brokers in the UK which you will find in this article as you read on.
Is Binary Options Trading Legal In UK?
In a word, YES Binary options trading is fully legal and well regulated in the UK and doesn’t have any restrictions at the time of writing this post.
In fact, it is a tax-free form of investment.
It means that you won’t be tax a dime for trading forex binary options in the UK.
What it means is that you have all the rights to trade binary options without being afraid of prosecution from the country’s law enforcement or regulatory.
And what makes the binary option interesting is the fact that you get your result within a minutes and not weeks, months, or even years.
Yes, it is that fast in getting results with binary options.
The reason why people think binary options are not legal in the UK is that binary options are much of a betting game.
And that really makes them preciously have a poor reputation within the UK.
But it has become so popular recently and many people want to venture into it.
Should be in case you don’t know what binary options are.
Binary options are a set of financial options which come with two payoff options. A fixed returned on an agreed amount or nothing at all.
The word Binary is used because there are always two outcomes whenever you participated in the game.
Firstly, it is either you get a return back on your investment which is normally between 75% to 95% of the total stake amount. This means once the trade comes through, you get your capital back with the ROI.
Secondly, this option is a vise versal to the first option which means it is possible you lose your total investment without getting anything in return.
If you stake £100 on binary options and the outcome is good, you will get up to £180 back and that is about 80%.
On the other hand, if the trade went sideways, you won’t get either your £100 back or any form of compensation.
So you can also easily call it a game of prediction or just name it a football betting game that it is either come fine or lose.
And that makes Binary Options regulated in the UK by the Gambling Commission rather than the Financial Conduct Authority.
Best Forex Binary Options In The UK
Before selecting forex brokers, they are DO’s and DONT’s that you must look for if you must be more successful trading.
And the reason is that they are features that the broker platform you are considering using must meet in order for you to have stress-free trade.
And as a result, I have an article that contains the INs and OUTs a binary options broker platform must meet up to.
You can check it here.
However, if you don’t want to read that long form of article.
You can consider using this quick overview table of the best forex brokers in the UK and the original websites links.
The above-listed forex brokers are our top recommendations and meet up the requirement that the UK regulatory set.
For your safety, we have also included the original websites links in order to avoid clone sites.
Binary Options, Features, Pros, Cons.
I thought you do like to gain more insights into what Binary Options actually are as a whole.
Where it is originating from, the founder, the features, pros, and cons, and anything that has to do with Binary options explanations.
I have explained them all in the very last possible details in a completely separate article.
That you can gain access to here.
However, if your only aim is to get an answer to the popular question “Is Binary Options Trading Legal in UK”.
Then it is YES.
The article INs and OUTs of Binary options won’t be for you then.
But I strongly recommend you go check the article here because it will really build up your mind for anything concerning Binary Options.
The interesting part is that the knowledge you will gain there will put you ahead of others in terms of knowledge when it comes to Binary Options.
- Is Binary Options Legal in Austrilia
- Is Forex Trading Legal in China
- Forex Trendy Review – Best Forex Signals Software
I hope I am able to answer the question “Is Binary Options Trading Legal In UK?”.
As you can also see from the explanation that Binary Options are completely legal in China with no limitation or form of prosecution by the Government.
You on the other hand need to find a legitimate forex broker in the UK and it is as well regulated.
Find the best forex platform is not actually easy and we understand the fact that it is not.
That is why we have listed the top-performing forex brokers that you can use in the UK above this article and a link is also included that you can follow to the original website.
And yes, they are clone websites everywhere these days trying to steal people’s information and money so you need to be careful.
With that, we have to the end of this article “IS Binary Options Trading Legal in Uk”.
If you have any questions about this, do use the comment section below.
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