Binary options brokers license and regulation
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.
For the trader, it should suffice to know the ongoing changes will only mean the landscape will shift toward a more transparent binary options industry. Very informative article, thanks for clearing out binary options regulations in the UK, hopefully FCA will finally regulate binary brokers and all the scammers will be forced to shut down. They will probably need to agree new deals.
Earlier, brokerages could obtain FCA licenses, which in turn allowed them to transfer their financial services into Europe. However, with the Brexit referendum, this advantage is likely to be taken away. Therefore, brokerages with FCA licenses will still need to apply for EU licenses to offer their services to the region. This means UK-based investors will have an institution that will continue to look after their interests and promote and maintain the integrity of the markets.
Skip to main content. Making a note of the regulation of the broker ensures that you are dealing with someone who is reliable and thus is authenticated by a reputable organization, which will always take care of the money that you are investing through the broker. Having a broker that holds transparent trading processes is crucial, however there is only one way to know more about this and i.
To do this you can take advantage of the demo account that is offered by many brokers out there. With the help of a demo account you will get a clear idea about how things go around with the broker and whether they are able to live up to your expectations or not. If you are not satisfied then you can immediately switch to a better option. Transactions are the essence of the binary world! This is the reason why a plethora of brokers have switched from the same old wire transfer to a wide range of transaction methods ranging from Credit cards, Debit cards to other organizations like PayPal, Skrill, WebMoney, CashU and many more.
The transaction processes should always be facilitated by customer support network ready to guide you with any type of complications that you face while carrying out your transaction. There you have it! These are the three integral factors that will help you in choosing the best binary options broker in no time.