Binary options brokers licensed in the uk regulated
The institution is known to be especially strong against the various payday lenders and short-term loan companies. In the financial and investment sector, the FCA imposes strict regulations for companies to obtain legal licenses. The FCA plays a central role in regulating the financial services industry. The institution promotes investor interests and ensures market integrity and fairness. The watchdog also promotes healthy competition, bearing in mind the best interests of the investor.
Furthermore, the regulator educates the general masses about various financial products, including binary options, and the risks that come with it. It also issues general warnings about potential fraud businesses.
Within Europe, the FCA is considered one of the most stable and strict financial watchdogs for the industry. The binary product in the UK can be viewed as both a financial instrument and gambling. There are some binary firms operating with gambling licenses provided by the UK GC. On the other hand, we see FCA regulated forex brokers that offer binary options as a side product.
The way both these licenses are obtained are quite different. Although the FCA does not regulate digital options, this has not stopped it from publishing warnings about various brokers. The watchdog issues such warnings in the general interests of the public at regular intervals and calls out the firms in its reports.
In doing so, the regulator has taken a proactive role in ensuring only legitimate businesses are able to offer their services to UK residents. Therefore, firms that offer such products mainly banks are expected to provide full reporting and transparency for their clients. If any of the binary options contracts are also put under this scheme, it could mean most unregulated binary brokers will have to obtain FCA licenses, especially if they offer the specific contracts to the UK investors.
Such brokers aim to bring the best practices and transparency into the business. This puts the licensed companies at an advantage due to the strict guidelines and regulations enforced by the FCA.
At present, binary options are subject to regulation by the UK Gambling Commission. However, current developments on the legislative side are expected to bring about some changes in the near future. The FCA is contemplating treating digital options as a financial product.
Given the increase in popularity of binary options, the FCA is rumoured to make a decision on including some types of binary options contracts under its umbrella. There are no restrictions in place in the UK; you are free to use the services of any broker in the world. This means any broker registered and regulated by CySEC, the Cypriot based regulatory is currently the predominant force in the world pertaining to binary options trading, can be used.
You are also free to use the services of any broker registered in the UK and therefore needing to comply with the UK laws. A binary option broker registered and regulated in Europe under one of these two bodies will provide a fair service, although this is no guarantee of a good return on your investments! It is important to note that the binary options deposit and the payout rate are only two factors to consider. Pay out charges can vary; most binary brokers offer a variety of bonus schemes which can assist you financially if your trade is successful.
Some binary options brokers offer a binary options demo account which can be a valuable asset to those starting trading and even to those with experience; it will allow you to familiarize yourself with the software on offer. The best solution for one person may not be the best for another, but the above binary options brokers are all regulated in Europe and do provide a fair service. UK residents can also use the services of any other broker in the world, whether regulated or not.
Should you decide to use an unregulated broker you must conduct an appropriate level of research to ensure your funds are secure and the investment opportunities are genuine.
Here goes the list of the best UK binary options brokers for those living within the UK at the moment. Subscribe To Trading Secrets.
UK Binary Options Brokers. InvestManiacs recommend you to check alternative selection of brokers in the UK.