Trading leader binary options uk
Are users of binary options websites investors or gamblers? To find out more about binary options, I visited the website of a binary options platform that was recently slammed in parliament by MP Mike Freerwhen he called upon the leader of the House of Commons to arrange a debate on regulating binary options trading. The next video claimed that binary options are simple and easy to understand but come with limited risk and predetermined returns.
The third told me the great thing is that you can trade at any time. Typically a trade in binary options involves a simple question of whether an event will happen or not — for example, will the price of a particular share or asset go up. The outcome is either yes or no, hence the term binary option.
If the investor is wrong, they lose their full investment. If punters are willing to invest their money into a gamble that could easily mean they lose every penny then it could be argued that that is their business. If they understand the risks and are content then they are adults who can make decisions, after all. Of course, there are still serious questions to be asked about whether the risks are adequately explained to everyone. But the main trouble is that fraudsters have leapt onto the growing popularity of binary options in order to scam people out of their money whether they win or lose.
Platforms are set up all the time to appear legitimate but are actually fake. Regular gamblers are concerned that calls for increased regulation could see an industry shut down, when they understand the risks and want to continue. Some are worried that calls for increased regulation could see the baby thrown out with the bathwater.
One real-life trader told The Finance Magnates website: But certainly, when the inevitable regulation comes it will be essential that regulators talk to satisfied punters — and they exist - about their experiences and how to protect them without curtailing their activity. The FCA strongly recommends that if you choose to go down this route you deal with a firm that is based in Great Britain and has a current licence to offer bets on binary options from the Gambling Commission.
However, if you do so then you need to be aware that this area is not covered by the FCA and so there will be no recourse to the complaints and compensation schemes. The Gambling Commission states that licensed operators must make it clear on their websites that they are licensed by the Commission and has a register of licences that can be easily checked.
If you choose to use an overseas company then it recommends a European Economic Area firm that is authorised to deal in binary options and is supervised by its member state. If you choose to use a non-European company then, again, it is essential you choose a firm that can show it is authorised or licensed and supervised in its home country. Otherwise, the dangers can be substantial.
One victim told Action Fraud: The account grew and showed good returns. All the transactions were done by debit from two of my credit cards. I was given their bank details to enable me to do a wire transfer, but did not use that function. When done properly, binary options are a high risk gamble that makes money for some but loses substantial amounts for others. When done badly and illegally they are smokescreens for the worst kinds of fraudsters. And whether interested people are investors or gamblers, they need to understand the risks of both the legitimate websites and the dangers of scams.
What do you think? Would you consider investing or gambling this way? Do high rewards justify high risks? Share your thoughts and experiences using the comments below. How to profit from the Santa rally. When ethical investing pays off.
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