Is binary trading in the uk legal and safe

The brokers were simply trying to get the victims to invest further money. Advertisements for Binary Options traders appear online with many companies aggressively targeting social media platforms with flashy commercials promising impressive returns.

Binary Options websites are often well-designed and professional looking — no expense is spared in trying to look legitimate. Brokers and traders, often working from scripts, will sound friendly, professional and knowledgeable. Whilst many Binary Options companies claim to be located in the UK, research has revealed that the vast majority are based abroad and have no physical presence here. Shell companies are registered in various financial jurisdictions and money is routed through multiple accounts, obscuring the perpetrators and hampering law enforcement efforts.

Despite the fact that the majority of Binary Options companies operate from outside of the UK, Action Fraud working alongside the National Fraud Intelligence Bureau NFIB continues to work with international law enforcement partners and the banking industry to tackle the issue by implementing changes, either by introducing an outright ban or through rigorous regulations to control this activity.

In addition the United States Federal Bureau of Investigation FBI are currently developing a global picture of this type of fraud and welcome reports from the victims of Binary Options made via their website www. You are here Home. What is Binary Options Fraud and what are the law enforcement doing about it? With the wide range of licensed brokers available in the UK, traders should have no trouble finding a legitimate and well-established brokerage firm to start trading binary options.

As mentioned above, the FSA no longer exists since April However, traders from the UK now have even more options when it comes to resources about binary options. Although trading binary options is relatively simple, it is normal to have questions about the rules, brokers, and legislations from time to time.

As an investor, you should not be shy about contacting the following agencies as they are in place to help protect you and are always happy to answer questions.

The Financial Conduct Authority FCA aims to get consumers to participate in financial markets across the UK with confidence and trust in the products and brokers with whom they engage.

FCA regulates brokers, firms, and financial advisors to ensure markets are stable. Transparency is an important mandate of the FCA and as such, fair and easy to understand pricing has been the focus of intervention in recent months. In regards to regulation, the FCA is responsible for the conduct of over 25, financial firms across the UK. In addition, it also regulates the prudential standards of approximately 23, of the firms. The FCA also takes protecting the consumers to heart and regularly puts forward strict rules in order to prevent traders becoming victims of scams or other unfair practices.

Its mandate pertains to the prudential regulation and supervision of various institutions. The PRA regulates over 1, firms and works according to two statutory objectives, which are to promote the safety and credibility of all firms the agency is supervising, and to provide an appropriate level of protection for policyholders.

It only takes one major mistake from a financial firm to cause significant harm to the stability of the UK system, therefore, the PRA is diligent about maintaining healthy, strong, and very successful financial markets. These include asset managers and other independent advisors.

The aim was to ensure greater financial stability across UK financial markets. Traders in the UK have many options when it comes to broker selection. Since licensed brokers operate under stringent rules, traders can be confident that registering with any licensed firm should provide them with a good trading experience.

Choosing a broker is a highly personal choice and there are some factors to take into consideration prior to making a decision. With so much information available on the web, any well-established brokerage firm will have customer testimonials and other independent customer reviews available. By reading what others have to say, traders can gage how their experience may be should they choose to sign up with a particular broker.

While a tedious task, reading the fine print and going over all of the terms and conditions of a broker is the only way traders can know exactly what they are getting into. If questions remain, traders should contact the broker directly. Brokers sometimes require certain fees prior to trading and others upon withdrawal requests. It is best to inquire about such fees prior to registration to avoid surprises in the end. Brokers within the UK are some of the best known worldwide and as such, they offer a wide range of assets for consumers to trade.

Traders interested in brokers with large portfolios will not be disappointed. Most binary options websites offer trading on future options of commodities such as oil and gold. Commodities are appealing to traders due to the nature of what affects their prices.

Traders who are keen on learning about and staying informed about what goes on in the world with oil and gold can quickly learn some tips and tricks about how to profit from commodities. Currency pairs are another popular choice for binary options traders. Traders should focus on the pairs they know well as successful trading of pairs requires a good understanding of the exchange rate and elements that can affect it.

While these many not be as popular as the other three options, they can be a profitable avenue for traders interested in developing specific knowledge about a given company.

Financial transactions always include an element of risk but by observing a few best practices, traders of binary options can set themselves up for a positive experience rather than a disappointing one. Find a broker that matches your trading needs — each trader has a specific trading style and finding a broker that matches your needs will greatly facilitate your success with binary options. Choose a broker that offers demo accounts — especially if you are a new trader, having the ability to practice beforehand and getting familiar with a specific trading platform will give you a good sense of what you are about to get into.

Use demo accounts to your advantage to get to know your style and your requirements in terms of trading. Never stop learning — binary options are in constant evolution and so are the strategies that can be applied to your trades in order to gain higher returns.

Get involved in forums, speak with other traders, and read financial news pertaining to your assets. Try to stay on top of the information in order to have the maximum chance of turning your investment into a profit. Be mindful of your budget — since binary options typically involve smaller investments compared to other forms of trading, losing track of your losses is easy.

Establish a budget and respect it no matter what your circumstances may be. Never invest more than you can afford to lose and make sure to choose assets with which you are familiar. The trading of binary options in the UK is expected to grow exponentially within the next few years. As more people get online and look for easy and instant ways to make trades, binary options is sure to become one of the top forms of trading.

As the industry grows, so will the laws and regulations guiding it.