Best Binary Options Brokers UK
If you are located in the United Kingdom, you will find a lot more possibilities open to you as far as binary options brokers go than you would if you were located in the USA or another country (check out Canada brokers here) which is more restrictive. This is a great advantage, but it also means that you need to be more selective about the brokers which you trade with. It is legal to trade options in the UK, and also to operate in the UK as a binary options broker. There are a number of UK-based firms, but you can also choose to trade with an offshore broker.
Following is a short list of some of our favorite brokers for UK customers:
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Who Regulates Binary Options Brokers?
Regulation of binary options brokers is a complex and confusing topic not only for many new traders, but for many brokers as well. There are a few binary options brokers which are regulated as binary options brokers, but the majority which are registered with a financial regulatory body at all are regulated as private banks, gaming companies, or Forex brokers. And most are only registered as a business in their respective countries, and not as a financial entity at all.
This may sound troubling at first, but rest assured that there are a number of excellent brokers which are registered with a financial authority in the UK or abroad. Binary options brokers in Cyprus may be registered as businesses under the Cyprus Securities and Exchange Commission (CySEC). Those located in the UK may be registered with the Financial Services Authority (FSA). Others may be regulated by the Isle of Man Gambling Commission, or with the British Virgin Islands Financial Services Commission (BVI FSC). Some brokers may choose to register with multiple financial commissions in order to ensure they are meeting regulations in multiple countries.
Of particular note on this list is Banc De Binary. This broker is not located in the UK; they are actually based in Cyprus, and are registered with CySEC under CySEC under CIF 188/13. In March of 2013, however, Banc De Binary announced they also have acquired a license under the Financial Services Authority in the UK to operate as an official financial service provider.
Another great binary options provider for UK customers is MarketsWorld. This company is UK-based, located in the Isle of Man, and is regulated by the Isle of Man Gambling Supervision Commission. While trading does not necessarily constitute gambling per se (it depends on how you approach your trading), there are many features in common with spread betting, which is why some binary options brokers choose to work with regulatory agencies that govern gaming in the UK.
Both of these brokers as well as some of the other brokers listed above offer demo accounts to new binary options traders. It is a good idea to start your trading career by demo testing first, which allows you to trade live without risking real money to ensure that your trading strategies work and that you understand the process and the platform. Companies which offer demo testing capabilities demonstrate good faith.
Learn about demo trading here
All of the companies we have listed for UK traders have proven themselves over the past few years to be reliable and trustworthy and to provide customers with the highest caliber of service.
Photo credits: The Union Jack flag on Westminster Houses of Parliament